ANNUAL
REPORT
2021
Corporate Information
Phone:
1-877-622-0205
Web site:
storagevaultcanada.com
Email:
ir@storagevaultcanada.com
Address:
100 Canadian Road, Toronto, Ontario, M1R 4Z5
CANADA SELF STORAGE CENTRES
About StorageVault Canada Inc.
StorageVault is Canada’s largest storage provider and is dedicated
to safeguarding the belongings of Canadian families and businesses.
Owning and operating 230 locations and over 10.7 million square
feet of space. StorageVault is represented regionally under the
following brands: Access Storage, Sentinel Storage, Depotium
Mini-Entrepôt and Cubeit Portable Storage. StorageVault also
provides last mile storage and logistics solutions through FlexSpace
Logistics and professional records management services, such as
document and media storage, imaging and shredding services
through RecordXpress.
To learn more about us, please visit www.storagevaultcanada.com.
Corporate Information
Email:
Phone:
ir@storagevaultcanada.com
1.877.622.0205
Address:
100 Canadian Road, Toronto, ON, M1R 4Z5
2 | Annual Report 2021
CANADA SELF STORAGE CENTRES
TABLE OF CONTENTS
LETTER TO OUR SHAREHOLDERS
OUR BOARD MEMBERS
2021 HIGHLIGHTS
OUR NATIONAL FOOTPRINT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
FINANCIAL STATEMENTS
MANAGEMENT DISCUSSION AND ANALYSIS
4
5
6
8
10
17
53
Annual Report 2021 | 3
CANADA SELF STORAGE CENTRES LETTER TO OUR SHAREHOLDERS
Dear Fellow Shareholders,
2021 was an exceptional year for our business, exceeding all
continues to be robust and we expect to close in excess of $100
expectations, budgets and stretch goals by a wide margin. We
million of acquisitions in 2022, with $45 million already closed. We are
achieved 20.1% same store NOI growth, 46.3% AFFO growth, and
confident that the $500 million of acquisitions over the past two years
acquired $270 million of strategic properties.
We were recognized for the 5th time, as one of the 50 fastest growing
companies on the TSXV and received approval to move to the TSX,
will improve efficiency, synergy and pricing power many years into
the future, further extending our lead as the largest, most prominent
storage provider in Canada.
which happened on January 26, 2022 We continue to be recognized
In addition to our acquisitions, we have plans to complete 25,000 to
as one of the most gender diverse companies in Canada. We continue
50,000 square feet of expansion in the next 12 months, with another
to support over 150 community organizations and charities across our
425,000 rentable square feet of expansion projects currently in the
great country and are very proud to be the Official Storage Partner for
entitlement and permitting stages.
Team Canada – we have the space to store all those medals!
Operations
Our results were unprecedented in the real estate industry, achieving
ESG
StorageVault continues its focus on community and the sustainability
of our country by supporting over 150 organizations focusing on
46.3% AFFO, 33.4% NOI and 34.2% revenue growth. The continued
children, health, education, sport and quality of life.
demand for last mile solutions and space for essential business
customers combined with home office use, change in life circumstances,
the fallout from Covid impacts and the resurgence of immigration
have pushed demand up while supply chain and entitlement delays
have constrained supply. This has resulted in high occupancy levels and
tremendous efficiency from our revenue management system.
Platform Strength and Innovation
We continue to improve our operating platform to meet the strong
demand for our services – these changes include improving our
We continue to invest in roof top solar, solar walls, motion sensor
LED lighting, low-flow plumbing fixtures, in-floor radiant heat, LED
replacement programs for acquired stores and paperless back office
practices in an ongoing effort to improve our environment.
We are proud to be recognized as leaders in gender diversity
and equality and continue to promote a culture of continuous
improvement, diversity of thought, skills development, personal
wellness and safety.
virtual systems to offer no-contact “self-serve” rental processes to
We are excited for 2022 with hopes of seeing an end to Covid and
having another very successful year. We remain focused on growing
cash flow, increasing shareholder value and supporting our people
and communities by executing on our strategies and being disciplined
purchasers and operators of great assets across Canada.
We appreciate your continued support.
Steven Scott
Chief Executive Officer
February 23, 2022
accommodate societies shift in behavior.
We launched FlexSpace Logistics, a technology platform that focuses
on providing end to end solutions for business clients with storage,
logistics, and inventory management offerings. Services are provided
across Canada through SVI’s existing portfolio of businesses and our
extensive network of partners, allowing us to offer everything from
warehousing and storage to last mile delivery to records management.
A true one-stop shop for businesses, especially small – medium sized
companies who were previously underserved in the space.
Acquisitions and Expansion
We acquired over $270 million of strategic self storage assets,
eclipsing the $230 million in 2020, resulting in 230 stores owned and
managed across the country (the next largest is 68 stores). Our pipeline
4 | Annual Report 2021
CANADA SELF STORAGE CENTRES
OUR BOARD MEMBERS
JAY LYNNE FLEMING
BEN HARRIS
IQBAL KHAN - CFO
In 1999, Ms. Fleming founded Storage
Mr. Harris has more than 20 years of real
Chief Financial Officer of the Corpora-
For Your Life which was sold to the
estate investment and management ex-
tion. Mr. Khan is a Principal and Chief
Corporation in September 2015. She
perience. Mr. Harris is the founder and
Financial Officer of The Access Group
currently serves the Corporation as a
CEO of Pinedale Capital Partners, a pri-
of Companies focusing on the own-
director and as a member of the Audit
vately-held
investment management
ership, acquisition and development
Committee, the Governance, Nominat-
firm focused on the acquisition, de-
of storage, industrial, multi-residential
ing and Compensation Committee and
velopment and operation of industrial
and commercial real estate in Canada,
the Acquisition Committee. Ms. Flem-
properties across the United States. Mr.
and prior to the internalization into the
ing is the President and CEO of CVL
Harris is a graduate of Dalhousie Univer-
Corporation, President of RecordXpress,
Investments Ltd., and is an active vol-
sity and the University of Kings College
a records management company. Mr.
unteer member of the Building & Land
in Canada where he received joint sci-
Khan is the Chief Executive Officer and a
Committee of Mulgrave School, West
ence degrees in Economics. Mr. Harris
director of Parkit Enterprise Inc. (TSX-V:
Vancouver. Ms. Fleming completed her
also serves on the board of Rippowam
PKT). He is the Chairperson of the Cana-
Business Certificate with Capilano Uni-
Cisqua School in Bedford, New York and
dian Self Storage Association Tax Com-
versity in 1991.
serves on the board of Sonida Senior
mittee.
Living (NYSE:SNDA).
STEVEN SCOTT - CEO
AL SIMPSON
Chair and Chief Executive Officer of the
In 2007, Mr. Simpson co-founded the
Corporation. Mr. Scott is currently a
Corporation and was President and Chief
director and Audit Committee Chair of
Executive Officer until April 2015. He now
Park Lawn Corporation (TSX: PLC). Mr.
serves the Corporation as a director and
Scott is also a director and Chair of Parkit
Acquisition Committee Chair. In 2000, Mr.
Enterprise Inc. (TSX-V: PKT). Mr. Scott is
Simpson co-founded Hospitality Network
a Principal and Chief Executive Officer
Canada now operating as HealthHub Pa-
of The Access Group of Companies
tient Engagement Solutions Inc. and was
focusing on the ownership, acquisition
President and Chief Executive Officer until
and development of stoage, industrial,
2005 and Chair from 2011 to 2017. Recently,
multi-residential and commercial real
Mr. Simpson co-founded Living Sky Sports
estate in Canada. Mr. Scott is also a
and Entertainment Inc. in 2020. Mr. Simp-
Director and Treasurer of the Canadian
son holds a PgD Business Administration
Self Storage Association.
from Edinburgh Business School. Mr. Simp-
son also serves on the Saskatchewan Gov-
ernment House Board of Trustees.
“We remain focused
on growing cash
flow, increasing
shareholder value and
supporting our people
and communities
by executing on our
strategies and being
disciplined purchasers
and operators of great
assets across Canada.”
Annual Report 2021 | 5
CANADA SELF STORAGE CENTRES 2021 HIGHLIGHTS
+186 STORES
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*
Q4/2014
10
STORES
Q4/2015*
29
STORES
Q4/2016
49
STORES
Q4/2017
90
STORES
Q4/2018
105
STORES
Q4/2019
151
STORES
Q4/2020
167
STORES
Q4/2021**
196
STORES
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+34%
REVENUE
+33%
NOI
+46%
AFFO
NOI
AFFO
140 MM
120 MM
100 MM
80 MM
60 MM
40 MM
20 MM
70 MM
60 MM
50 MM
40 MM
30 MM
20 MM
10 MM
‘14
‘15
‘16
‘17
‘18
‘19
‘20
‘21
‘14
‘15
‘16
‘17
‘18
‘19
‘20
‘21
6 | Annual Report 2021
CANADA SELF STORAGE CENTRES
WE GREW TO OVER
10.7 MILLION SQFT
OF RENTABLE SPACE
IN 96,000 STORAGE
UNITS
$270.2 MILLION IN
ACQUISITIONS
RESULTING IN
29 STORES BEING
ADDED IN 2021
REVENUE GROWTH
OF 34% TO $208.7
MILLION FROM
$155.5 MILLION
NOI GROWTH OF
33% TO $139.0 MILLION
FROM $104.2 MILLION
EXPECTING $100+
MILLION IN
ACQUISITIONS
1,470% 7 YEAR
TOTAL SHAREHOLDER
RETURN
Annual Report 2021 | 7
CANADA SELF STORAGE CENTRES OUR NATIONAL
FOOTPRINT
230+ locations owned and managed
across Canada and growing!
18
OUR BRANDS
44
11
12
5
5
26
26
114
114
8 | Annual Report 2021
Annual Report 2021 | 9
D O C U M E N TI S T O R A G E
R E T R I E V A LI S E R V I C E S
A Division of Storagevault Canada Inc.
CONTAINERS
CANADA SELF STORAGE CENTRESCANADA SELF STORAGE CENTRES ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
10 | Annual Report 2021
CANADA SELF STORAGE CENTRES Environmental integrity, social responsibility and adherence to strong governance
practices are core values at StorageVault. We continue to focus on reducing
the already extremely low environmental impact of our stores, improving our
engagement with colleagues and shareholders, supporting the communities in
which we operate, and maintaining sound corporate governance practices.
Annual Report 2021 | 11
CANADA SELF STORAGE CENTRES ENVIRONMENTAL
It is our responsibility to be leaders in the communities in which
At the end of 2021, StorageVault operated 28 stores with
we live and work, to minimize our impact while actively seeking
solar panels installed and will continue to expand solar
opportunities to protect the environment and encourage
panel
installations across our portfolio. Our solar panel
sustainable operating practices. We continuously explore
installations utilize available roof space to generate electricity
opportunities to improve the environmental efficiency in our
for consumption while providing a solid financial return,
buildings and operations given the importance to our company,
demonstrating that sustainability efforts not only benefit the
our shareholders, our customers, and our communities.
environment and community, but also our shareholders.
Of all the real estate asset classes, self storage has the lowest
Below are highlights of some of the environmental practices
environmental impact in the areas of energy consumption,
that we have adopted in an effort to reduce our overall
water consumption and waste production. While the self
environmental footprint:
storage industry has an inherently light environmental footprint,
we proactively strive to be even better.
Energy Consumption
• motion controlled lighting by zone, allowing for usage
Strategically, we offer a mix of square footage that is non-
only where and when required
climate controlled and climate controlled, with non-climate
• LED lighting (internal and external) for all new buildings
controlled space having minimal environmental affect. For our
and light fixture replacements
properties that offer climate controlled storage, we regulate
• solar power generation
inside temperatures at moderate levels to safeguard contents
• modern, energy efficient HVAC systems
while minimizing energy required for heating or cooling.
• automated and self adjusting internal thermostat
Operationally, water usage is very low, and minimal daily client
temperature controls
activity contributes to limiting our carbon footprint within our
• all new roofs installed are reflective “cool” roofs that help
communities.
minimize energy consumption
12 | Annual Report 2021
CANADA SELF STORAGE CENTRES LOW ENVIROMENTAL IMPACT RELATIVE
TO OTHER ASSET CLASSES
85%
LESS
92%
LESS
84%
LESS
ENERGY CONSUMPTION
(KWh/SqFt)
WATER CONSUMPTION
(L/SqFt)
WASTE PRODUCTION
(KG/SqFt)
STORAGE
OTHER REAL ESTATE ASSET CLASSES
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Water Consumption
refurbished equipment to local charities or recycling
• given low occupant levels at our properties, on average,
equipment that cannot be repurposed
one washroom per property
• energy efficient plumbing systems and appliances
Building Design and Construction Practices
• low-water irrigation systems
• energy efficient glazing
• landscaping using native and drought-tolerant species
• use of SolarWall systems or insulated metal panels used in
• water run-off controls
• storm water retention
construction of new or retrofitted buildings
• replacing standard exterior storage doors with energy
efficient doors
Waste Production
• insulated foundation walls to help maintain and keep the
• sale of recycled packaging materials
foundation slab warm
• waste recycling program at our stores and corporate
• all proposed acquisitions are subject to environmental site
offices
assessments prior to closing
• reduced paper usage through more efficient technology
options including paperless rental agreements
• e-waste reduction and electronic recycling program for
decommissioned computer equipment by either donating
Annual Report 2021 | 13
CANADA SELF STORAGE CENTRES
SOCIAL
At StorageVault, we respect the role and impact we have
Being a community based business, we believe in giving back
in our host communities. We are proud to employ a diverse
in the places where we live and work by supporting local,
team of 700 colleagues, who represent both our communities
grass-roots initiatives as well as national organizations. In 2021,
and our customer bases, and who help support the over 100
StorageVault continued our annual support of over 150 local,
communities we are in across Canada. Diversity is in our DNA
provincial and national organizations. Our dedicated Corporate
and is the foundation of our strength and stability. We are proud
Partnerships team’s mission is to align with organizations
that our culture of continuous improvement has led to a high
across the country to support important initiatives that matter
number of promotions within our organization. As colleagues,
to our communities. We are committed to engaging with our
we believe that taking care of each other leads to a greater level
communities in a way that allows us to make meaningful and
of care for our stores, customers and communities. We do so
lasting contributions.
by focusing on engagement, advancement, wellness and safety.
OFFICIAL STORAGE PARTNER OF
THE CANADIAN OLYMPIC COMMITTEE
Sports
Sports have the power to connect us in all areas of community. It is our desire
to support communities across Canada, so that they are healthy and strong.
StorageVault is proud to be the official Self Storage Partner for Team Canada.
It is with great pride and patriotism that we support our athletes and communities
from coast to coast. From young hopefuls in grassroots organizations to Olympians
striving for gold, we proudly support their journey to excellence.
14 | Annual Report 2021
CANADA SELF STORAGE CENTRES Community Support
Our partnership family consists of more than 150 partners nationally. We work
closely with our partners to foster relationships to better assist and understand
the needs within communities across Canada - from food security, to flood
relief, to healthcare or sponsoring programs for vulnerable youth. We align with
like-minded organizations, to work together in support of healthy and resilient
communities.
Annual Report 2021 | 15
CANADA SELF STORAGE CENTRES GOVERNANCE
The Board and Management of StorageVault are committed
• Annual election by shareholders of Directors, CEO and
to maintaining the highest standards of governance to ensure
CFO at AGM
long-term value for our shareholders, mitigate and manage risk
• Whistleblower Policy
and proactively protect the best interests of all our stakeholders.
• Insider Trading and Reporting Policy
• Disclosure and Confidentiality Policy
As part of StorageVault’s recent graduation to the TSX, we
• Regular review and updates of all Corporate Governance
were subject to an audit, scrutiny and testing to ensure that
principles and policies
our corporate policies, practices and accounting standards met
• Code of Business Conduct & Ethics which is signed by all
the TSX’s stringent compliance requirements. Our corporate
employees
policies and standards promote the long-term interests of our
• Majority Voting Policy (to be implemented at Annual
shareholders, strengthen management accountability and help
General Meeting)
maintain public trust in StorageVault.
Our Board and Management recognize the importance of
diversification and equality. We are proud to organically have
equality, diversity and good corporate governance and is
this balance within our organization and continue to promote
dedicated to maintaining the highest governance standards
a culture of continuous improvement, diversity of thought,
through the following:
development of skills, personal wellness and safety.
StorageVault continues to be recognized as a leader in gender
• Independent Director led Audit, Acquisition and
Governance, Nominating and Compensation Committees
Our approach to governance and the continuous execution of
• Diverse Management team and Board, along with a
sound ESG principles places StorageVault in a strong position
comprehensive Diversity Policy
to deliver sustainable returns to our fellow shareholders while
• 40% Board Diversity (gender and race)
supporting our many stakeholders.
• Acquisition Committee Mandate to review, approve and
recommend transactions to the Board
• Annual review and vote to approve executive compensation
16 | Annual Report 2021
CANADA SELF STORAGE CENTRES StorageVault Canada Inc.
Consolidated Financial Statements
For the Years Ended December 31, 2021 and 2020
Annual Report 2021 | 17
CANADA SELF STORAGE CENTRES
Independent Auditor's Report
To the Shareholders of StorageVault Canada Inc.:
Opinion
We have audited the consolidated financial statements of StorageVault Canada Inc. (the "Corporation"), which
comprise the consolidated statements of financial position as at December 31, 2021 and December 31, 2020, and the
consolidated statements of income (loss) and other comprehensive income (loss), changes in equity and cash flows
for the years then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Corporation as at December 31, 2021 and December 31, 2020, and its
consolidated financial performance and its consolidated cash flows for the years then ended in accordance with
International Financial Reporting Standards.
Basis for Opinion
We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Corporation in accordance with the ethical
requirements that are relevant to our audits of the consolidated financial statements in Canada, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises:
• Management’s Discussion and Analysis
• The information, other than the consolidated financial statements and our auditor’s report thereon, in the Annual
Report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audits of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audits or otherwise appears to be materially misstated.
We obtained Management’s Discussion and Analysis prior to the date of this auditor’s report. If, based on the work
we have performed on this other information, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
The Annual Report is expected to be made available to us after the date of the auditor’s report. If, based on the work
we will perform on this other information, we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance.
18 | Annual Report 2021
CANADA SELF STORAGE CENTRES Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with International Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Corporation’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Corporation’s financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Corporation’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Corporation’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Annual Report 2021 | 19
CANADA SELF STORAGE CENTRES We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audits and significant audit findings, including any significant deficiencies in internal control that we
identify during our audits.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
The engagement partner on the audit resulting in this independent auditor's report is Scott Laluk.
Calgary, Alberta
February 23, 2022
Chartered Professional Accountants
20 | Annual Report 2021
CANADA SELF STORAGE CENTRES __________________________________________________________________________________________
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CANADA SELF STORAGE CENTRES __________________________________________________________________________________________
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CANADA SELF STORAGE CENTRES __________________________________________________________________________________________
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CANADA SELF STORAGE CENTRES __________________________________________________________________________________________
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CANADA SELF STORAGE CENTRES
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FFoorr tthhee TThhrreeee MMoonntthhss aanndd FFiissccaall YYeeaarr EEnnddeedd DDeecceemmbbeerr 3311,, 22002211
The following Management’s Discussion and Analysis (“MD&A”) provides a review of corporate and market
developments, results of operations and the financial position of StorageVault Canada Inc. (“SVI” or “the
Corporation”) for the three months and fiscal year ended December 31, 2021. This MD&A should be read in
conjunction with the audited fiscal 2021 consolidated financial statements and accompanying notes contained
therein, which have been prepared in Canadian dollars and in accordance with International Financial Reporting
Standards (“IFRS”). This MD&A is based on information available to Management as of February 23, 2022.
FFOORRWWAARRDD LLOOOOKKIINNGG SSTTAATTEEMMEENNTTSS
This MD&A contains forward-looking information. All statements, other than statements of historical fact, included
in this MD&A, may be forward-looking information. Generally, forward-looking information may be identified by
the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is
expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”,
or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain
actions, events or results may, could, would, or might occur or be achieved. In particular, forward-looking
information included in this MD&A includes statements with respect to: the Corporation’s outlook as to the market
for self storage and portable storage; economic conditions; the availability of credit; the expectation of cash flows;
the Corporation’s strategic objectives, growth strategies, goals and plans; potential sources of financing including
issuing additional common shares as a source of financing, generally, and as a source of financing for potential
acquisitions; future expansion of existing SVI Stores; the size of potential future acquisitions the Corporation may
make in 2022; the annualized net operating income (NOI), a non-IFRS measure, and annualized funds from
operations (FFO), a non-IFRS measure, assumes acquisitions that occurred in fiscal 2021 were purchased on
January 1, 2021; and the general outlook for the Corporation. This forward-looking information is contained in
“Nature of Business”, “Business and General Corporate Strategy”, “Outlook”, “Financial Results Overview” and
“Working Capital, Long Term Debt and Share Capital” and other sections of this MD&A.
Forward-looking information is subject to known risks, such as the COVID-19 pandemic, and unknown risks,
uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of
the Corporation to be materially different from those expressed or implied by such forward-looking information.
Certain of such risks are discussed in the “Risks and Uncertainties” section of this MD&A.
Although the Corporation has attempted to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking information, there may be other factors that
cause actions, events or results to be not as anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-
looking information. The factors identified above are not intended to represent a complete list of the factors that
could affect the Corporation.
The forward-looking information in this MD&A should not be relied upon as representing the Corporation’s views
as of any date subsequent to the date of this MD&A. Such forward-looking information is based on a number of
assumptions which may prove to be incorrect, including, but not limited to: the ability of the Corporation to obtain
sufficient or necessary financing, satisfy conditions under previously announced acquisition agreements, or satisfy
any requirements of the TSX with respect to these acquisitions and any related private placement; the level of
activity in the storage business and the economy generally; consumer interest in the Corporation’s services and
1
Annual Report 2021 | 53
CANADA SELF STORAGE CENTRES
products; competition and SVI’s competitive advantages; trends in the storage industry, including, increased
growth in self storage, portable storage and management segments; the availability of attractive and financially
competitive asset acquisitions in the future; the revenue from acquisitions completed in fiscal 2021 being
extrapolated to the entire period for 2021 and being consistent with, and reproducible as, revenue in future
periods; and anticipated and unanticipated costs. A description of additional assumptions used to develop such
forward-looking information and a description of additional risk factors that may cause actual results to differ
materially from forward-looking information can be found in the Corporation’s disclosure documents on the SEDAR
website at www.sedar.com. The Corporation undertakes no obligation to publicly update or review any forward-
looking information, except in accordance with applicable securities laws. Historical results of operations and
trends that may be inferred from this MD&A may not necessarily indicate future results from operations.
The amount of potential future acquisitions by the Corporation in fiscal 2022 and revenue and NOI growth for
2022 may be considered a financial outlook, as defined by applicable securities legislation, contained in this MD&A
and the accompanying news release. Such information and any other financial outlooks or future-oriented financial
information has been approved by management of the Corporation as of the date hereof. Such financial outlook
or future-oriented financial information is 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.
Additional information relating to StorageVault Canada Inc. can be found at www.sedar.com.
54 | Annual Report 2021
2
CANADA SELF STORAGE CENTRES
TTAABBLLEE OOFF CCOONNTTEENNTTSS
GLOSSARY OF TERMS
NATURE OF OUR BUSINESS
BUSINESS AND GENERAL CORPORATE STRATEGY
OUTLOOK
DESCRIPTION OF OUR OPERATIONS
FINANCIAL RESULTS OVERVIEW
WORKING CAPITAL, DEBT AND SHARE CAPITAL
CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ARRANGEMENTS
RELATED PARTY TRANSACTIONS
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
ACQUISITION COMMITTEE AND ACQUISITION COMMITTEE MANDATE
ACCOUNTING POLICIES
RISKS AND UNCERTAINTIES
CORPORATE CONTACT INFORMATION
5566
5577
5588
6600
6611
6633
7700
7755
7766
7777
7799
7799
8800
8833
3
Annual Report 2021 | 55
CANADA SELF STORAGE CENTRES
GGLLOOSSSSAARRYY OOFF TTEERRMMSS
The following abbreviated terms are used in the Management Discussion & Analysis and have the following
respective meanings:
““AAFFFFOO”” means 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; AFFO is a
non-IFRS measure – see Accounting Policies Non-IFRS Measures;
““EExxiissttiinngg SSeellff SSttoorraaggee”” means stores that the Corporation has owned or leased since the beginning of the
previous fiscal year; Existing Self Storage is a non-IFRS measure – see Accounting Policies Non-IFRS Measures;
““FFFFOO”” means net income (loss) excluding gains or losses from the sale of depreciable real estate, plus
depreciation and amortization, stock based compensation expenses, unrealized gains or losses on interest rate
swaps, unrealized gains or losses on derivative financial instruments and deferred income taxes; and after
adjustments for equity accounted entities and non-controlling interests;
““IIFFRRSS”” means International Financial Reporting Standards;
““MMDD && AA”” means this Management’s Discussion and Analysis disclosure document;
““NNeeww SSeellff SSttoorraaggee”” means stores that have not been owned or leased continuously since the beginning of the
previous fiscal year; New Self Storage is a non-IFRS measure – see Accounting Policies Non-IFRS Measures;
““NNOOII”” means net operating income, calculated as revenue from storage and related services less related property
operating costs; NOI is a non-IFRS measure – see Accounting Policies Non-IFRS Measures;
““NNoonn--IIFFRRSS MMeeaassuurreess”” means operating and performance metrics that are not always calculated with reference
to IFRS, but are used commonly in the storage industry to measure operating results for assets owned or leased;
““QQ11,, QQ22,, QQ33 oorr QQ44”” means a three month fiscal quarter of the Company, ending on March 31, June 30,
September 30 and December 31 respectively;
““RReevveennuuee MMaannaaggeemmeenntt”” means the operating principle of achieving optimal revenue through a combination of
rental rate increases on existing customers (increases the existing revenue base and rent per square foot) and
dynamic pricing of available inventory;
““SSttoorree”” means self storage property or location or facility or site;
““SSuubbsseeqquueenntt EEvveennttss”” means material transactions that have occurred from January 1, 2022 to February 23, 2022;
““SSVVII”” means StorageVault Canada Inc.;
““TThhee CCoommppaannyy”” or ““TThhee CCoorrppoorraattiioonn” or ““WWee”” or ““OOuurr”” or “SSttoorraaggeeVVaauulltt” means StorageVault Canada Inc.
56 | Annual Report 2021
4
CANADA SELF STORAGE CENTRES
NNAATTUURREE OOFF OOUURR BBUUSSIINNEESSSS
BBuussiinneessss OOvveerrvviieeww
The Corporation’s primary business is owning, managing and renting self storage and portable storage space to
individuals and commercial customers. The Corporation also stores, shreds, and manages documents and records
for its customers. As of January 26, 2022, the common shares of the Company are publicly traded on the TSX,
prior to that on the TSX Venture Exchange, under the symbol ‘SVI’.
As of December 31, 2021, SVI owned 196 stores and 4,527 portable storage units across Canada, for a total of
10,772,252 square feet of rentable storage space in 96,047 rental units. The stores operate under the Access
Storage, Depotium Mini-Entrepots, Sentinel Storage and Storage For Your Life brands. Our portable storage
business operates under the Cubeit and PUPS brands. Our records management business operates under the
RecordXpress brand.
In addition to our owned stores, SVI manages 34 stores that are owned by third parties for a management fee,
bringing the total number of stores owned and managed to 230.
We are able to leverage our national storage presence to offer last-mile storage solutions, such as personal
protective equipment handling for health care organizations across the country. Through our portable storage and
records management businesses, we offer mobilization solutions to move items from our locations directly to the
end user.
SVI’s objective is to own and manage storage assets in Canada’s top markets. The Corporation will focus on
acquiring storage assets with strong existing cash flows, in strategic markets, preferably with excess capacity and
land allowing for future development and expansion of our self, portable and information and records
management storage businesses. Financing for this growth is intended to come from a combination of free cash
flow from operations, mortgage financing and the issuance of debt or equity securities.
TThhee SSttoorraaggee LLaannddssccaappee
The significant growth in demand for storage space in Canada over the past decade has largely been driven by the
following factors: population growth, change of circumstances, smaller living areas and workspaces, business
mile solutions, lack of warehouse space, immigration, downsizing, renovations,
incubation, e
moving, death, divorce, insurance, etc. We expect these trends to continue in 2022 and beyond.
commerce, last
‐
‐
Market Size
The Canadian storage market is estimated to be 90 million square feet across 3,000 stores, with the top 10
operators owning less than 15% of these stores; by comparison, the US market is estimated at over 2.7 billion
square feet across 51,000 plus stores. This translates into approximately 8.3 square feet per capita in the US versus
2.5 square feet per capita in Canada, suggesting that Canada is an under-stored nation.
The market fragmentation of the Canadian storage industry combined with the low square foot per capita provides
significant consolidation, expansion and development opportunities. Our existing platform, relationships,
reputation and knowledge of the storage industry allows us to identify and take advantage of accretive and
strategic acquisition opportunities.
Pricing and Occupancy
A store’s rental rates and level of occupancy are dependent upon factors such as lead generation, population
density and growth, the local economy, pricing, customer service and curb appeal. We believe in managing our
inventory (units) through pricing. Since our rentals are either weekly or monthly, we are able to react to market
demand and inflationary pressures quickly. Our objective is to maximize revenue by increasing rent per square
foot first, and maximizing occupancy second.
5
Annual Report 2021 | 57
CANADA SELF STORAGE CENTRES
Competition
New development in a market impacts the occupancy and the ability to raise rates at existing stores until the
market absorbs the new space. New entrants tend to offer significant move-in specials to achieve rapid occupancy
gains. Once the new space has leased up, promotions are reduced or eliminated and the focus switches to
maximizing revenue through price increases. This can result in short term fluctuations in occupancy and revenue
per square foot at existing stores.
Seasonality
The storage business is subject to seasonality. There is naturally more activity in the warmer months and less
activity in the colder months. As a result, occupancies and revenue per square foot tend to be highest in Q2 and
Q3 and lowest in Q1 and Q4. This trend is consistent with what is experienced in the Northern US. This seasonality
is more significant in the portable storage business as all of our portable units are non-climate controlled. Also,
operating costs tend to be higher during the winter months in Canada due to heating and snow removal costs
resulting in lower NOI margins in Q1 and Q4 versus Q2 and Q3.
BBUUSSIINNEESSSS AANNDD GGEENNEERRAALL CCOORRPPOORRAATTEE SSTTRRAATTEEGGYY
SVI owns and manages storage locations offering both self storage and portable storage for rent on a weekly or
monthly basis, for personal and commercial use. We are focused on owning and operating locations in the top
markets in Canada with a plan to have multiple stores, where possible, in each market we operate.
GGrroowwtthh SSttrraatteeggiieess
Our growth strategy is described in the following six segments: acquisitions, organic growth through improved
performance of existing stores, expansion of our existing stores to meet pent up demand, and expansion of our
portable storage, records management and FlexSpace Logistics business segments.
Acquisitions
The combination of our corporate platform, our track record of closing transactions, our industry relationships and
our storage experience provides SVI with a unique advantage in the Canadian marketplace. This advantage allows
us to identify accretive and strategic purchasing opportunities at attractive prices that provide synergies in
operations, marketing and revenue maximization.
We intend to be a disciplined purchaser, with a focus on Canada’s top markets. As there is more competition to
acquire existing stores, especially from US purchasers, we may find it difficult to acquire assets that meet our
criteria.
Organic Growth
Scale is important and the increased size of SVI provides a significant advantage in negotiating better rates on:
marketing, insurance, software, office supplies, resale retail products, merchant services, technical support and
long distance transport of portable units. These economies of scale translate into improved margins and better
results.
Efficiencies are also gained through cross promotion and marketing of the self storage and portable storage
platforms, and our records management services due to our national footprint, and offering different but
complementary product choices at various price points to our customers.
The most significant evolution in the storage industry has been in the area of revenue management. Revenue
management is the principle of achieving optimal revenue through a combination of rental rate increases on
existing customers (increases the existing revenue base and rent per square foot) and dynamic pricing of available
inventory so that we are selling the right space, to the right customer, at the right time, for the right price. With a
focus on providing the best value to the customer and on revenue management, stores are able to achieve
significant top and bottom line growth, even when occupancies are stable.
58 | Annual Report 2021
6
CANADA SELF STORAGE CENTRES
Existing Store Expansion
There is over 1,500,000 square feet of development potential on excess land currently owned and operated by
SVI. When market conditions are suitable and high occupancies and leads indicate pent up demand, we expect
to expand a number of our existing locations. In 2021, we completed 10,000 square feet of expansion and currently
have plans to complete another 25,000 to 50,000 square feet of expansion in the next 12 months. In addition, we
have another 425,000 rentable square feet of expansions projects in the entitlement and permitting stage.
Expansion of Portable Storage Business
The portable storage business continues to complement our overall business, providing additional synergies and
efficiencies to our platform. While margins in portable storage are not as high as they are in self storage, they are
still very attractive, and with the larger geographic and operating footprint achieved through our growth strategy,
we believe margins will continue to improve.
Expansion of Information and Records Management Business
The records management business is a complementary vertical in the storage space, much like portable storage,
and fills up excess space, delivering strong "sticky" cash flows. RecordXpress is one of the largest records
management companies in Canada and is the only Canadian owned company that can provide a national platform.
This is a significant competitive advantage as government organizations, such as hospitals and charities, do not
want their confidential information in foreign hands.
Expansion of FlexSpace Logistics Business
The FlexSpace Logistics business is a technology platform that focuses on providing end to end solutions for
business clients with our storage, logistics, and inventory management offerings. Services are provided across
Canada through SVI’s existing portfolio of businesses and our extensive network of partners, allowing us to offer
everything from warehousing and storage to last mile delivery to records management. A true one-stop shop for
businesses, especially small – medium sized companies who were previously underserved in the space.
FFiinnaanncciinngg SSttrraatteeggyy
We anticipate funding the capital requirements of our growth strategy through excess operating cash flow,
utilization of suitable leverage and from the issuance of equity and debt securities.
Financing With Secured Debt and Lines of Credit
The Corporation will partially fund the purchase of storage assets with debt. A number of factors are considered
when evaluating the level of debt in our capital structure, as well as the amount of debt that will be fixed or variable
rate. In making financing decisions, the factors that we consider include, but are not limited to, interest rate,
amortization period, covenants and restrictions, security requirements, prepayment rights and costs, overall debt
level, maturity date in relation to existing debt, overall percentage of fixed and variable rate debt and expected
store performance.
Issuance of Common Shares
The Corporation will, from time to time, issue common shares to the public or to vendors to fund the purchase of
storage assets or pay down debt. SVI will consider issuances of additional common shares for cash proceeds or
as consideration in the purchase of storage assets in the upcoming fiscal year if accretive to shareholders. Future
issuances will be dependent upon financing needs, acquisitions and expansion, equity market conditions at the
time and transaction pricing.
7
Annual Report 2021 | 59
CANADA SELF STORAGE CENTRES
OOUUTTLLOOOOKK
The Corporation’s update and outlook for the COVID-19 pandemic, acquisitions, share capital, results from
operations and subsequent events are:
TThhee CCOOVVIIDD--1199 PPaannddeemmiicc
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 “self-serve” rental processes, installation of plexiglass partitions and limiting
the number of customers in our offices to one at a time. Our teams have been continuously 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 committing to provide exceptional client and community service.
In fiscal 2021, we experienced 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 has 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 storage, portable storage, records management and
FlexSpace Logistics infrastructures.
As at December 31, 2021, we continue to generate significant cash flows from our operations, with $25.1 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 $270.2 million in acquisitions completed in fiscal 2021.
AAccqquuiissiittiioonnss
In 2022, we expect to acquire in excess of $100 million of assets.
Historically we have been successful in meeting our acquisition targets; however, as there is uncertainty in the
Canadian economy, and more competition to acquire existing stores, especially from foreign purchasers, we may
not be able to find acquisitions that meet our criteria.
SShhaarree CCaappiittaall
The Corporation will, from time to time, issue common shares to the public or to vendors to fund the purchase of
storage assets. Future issuances will be dependent upon financing needs, acquisition opportunities, expansion
plans, equity market conditions and transaction pricing.
RReessuullttss ffrroomm OOppeerraattiioonnss
We expect growth in revenue and NOI in 2022 as we continue to streamline and integrate operations, implement
our revenue management system and continue to control costs on the over $1.8 billion of assets purchased in the
past six years. We also expect significant contributions from the acquisitions made in late fiscal 2020 as well as
those we have completed in fiscal 2021.
The Corporation may use discounts in select markets to match competitive forces and retain its customer base as
a result of competitors trying to jump-start their lease up periods by offering significant discounts to new
customers. This can result in short term fluctuations in occupancy and rent per square foot at existing stores. The
effect on overall revenues is not expected to be significant, but it may be enough to slow the rate of growth in
revenues experienced in past years.
60 | Annual Report 2021
8
CANADA SELF STORAGE CENTRES
SSuubbsseeqquueenntt EEvveennttss
The following items have been announced by the Corporation:
• On January 24, 2022, announced the acquisition of one store in Toronto, Ontario for $45 million. The
acquisition was paid by the issuance of 3,356,560 common shares of SVI at an aggregate purchase price
of $22 million, with the remainder of the purchase price being paid with funds on hand or consisting of
debt of the store being acquired. The acquisition is a related party acquisition.
• On January 26, 2022 StorageVault’s common shares, its 5.75% senior unsecured hybrid debentures and
its 5.50% senior unsecured hybrid debentures were listed and commenced trading on the Toronto Stock
Exchange (the “TSX”), under the symbols SVI, SVI.DB and SVI.DB.B, respectively
• On February 23, 2022, approved the increase to the quarterly dividend for Q1 2022 by 0.5% to $0.002775
per common share.
DDEESSCCRRIIPPTTIIOONN OOFF OOUURR OOPPEERRAATTIIOONNSS
As at December 31, 2021, the Corporation owned the following self storage and portable storage operations:
LLooccaattiioonn
AAccrreess
NNuummbbeerr ooff
SSttoorreess
UUnniittss
RReennttaabbllee
SSqquuaarree FFeeeett
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
Nova Scotia
Portable Storage Units
45
139
33
36
324
37
16
18
40
11
12
90
20
5
9,627
20,544
2,715
4,846
42,760
9,373
1,655
4,527
932,960
2,333,851
356,554
490,057
5,070,527
887,201
179,454
521,648
TToottaall
663300
119966
9966,,004477
1100,,777722,,225522
Management is focused on increasing value and increasing NOI as follows:
RReevveennuuee MMaannaaggeemmeenntt
In today’s competitive climate, revenue per square foot is the greatest driver in increasing NOI and creating value.
Our management platform has intelligent software, supported by dedicated personnel, that understands the
nuances of each local market. Our in-depth knowledge of our customer base and the competition allows us to
implement strategic rate increases and optimize proven promotions to attract clientele that will become long-term
customers, repeat renters and strong referral sources.
PPrrooffeessssiioonnaall MMaannaaggeemmeenntt
The management team at SVI has extensive experience in all aspects of the storage industry including:
• delivering superior results
• management of over 230 storage locations throughout Canada
•
• over 200 years of combined experience in the storage industry by senior management
acquisition, development and management of over 15 million square feet of storage space
MMaarrkkeettiinngg
We implement specific marketing plans for the different localities, stages and seasons of our business with
emphasis on maximizing return on investment for every dollar spent. Our strategies to attract customers include
strong search engine marketing, user friendly online presence and no-contact “self serve” rental processes,
community connection programs and development of large national accounts to fulfill their last-mile storage
needs. We conduct specific store and market analysis to determine how, when and where to focus our marketing
dollars with the goal of efficiently and consistently increasing the value of our stores.
9
Annual Report 2021 | 61
CANADA SELF STORAGE CENTRES
CCoossttccoo SSuupppplliieerr
Our storage business is the exclusive supplier to Costco Wholesale Canada Ltd. (Costco) members across Canada.
This relationship provides exclusive access to Costco’s vast membership base as a marketing channel.
RReesseerrvvaattiioonn CCeennttrree
Our management platform includes a Reservation Centre (call centre) that provides call management services
designed to increase reservations and move-ins, increase productivity at the store level and improve our corporate
image through professionalism, consistency of messaging and willingness to resolve issues. Our Reservation
Centre agents have training in the storage business and understand the need to introduce and greet professionally,
establish rapport with customers, build trust, listen, ask the right questions, ask for the business and close the sale.
The overall result is an increased close rate leading to improved financial performance.
TTeecchhnnoollooggyy aanndd SSooffttwwaarree
SVI stores utilize modern and intelligent software, technology and security systems. We work with vendors and
developers, who have knowledge of the storage business, to take advantage of developing trends, including: (i)
exception reports that allow management to monitor key performance and indicators ensuring that management’s
time is more effectively spent preventing and resolving issues than identifying them; and (ii) web-based software
reporting that allows authorized individuals to view specific store information in real time. The user can choose to
see daily rental rates achieved and the number of customers moving-in or moving-out. This tool allows us to adjust
quickly to opportunities and threats in each marketplace.
EEccoonnoommiieess ooff SSccaallee
The size and scope of our management platform, combined with the growing size of our own operations, translates
into higher gross margins through the centralization of many functions such as revenue management, property
management, employee compensation and benefits programs, as well as the development and documentation of
standardized operating procedures and best practices.
62 | Annual Report 2021
10
CANADA SELF STORAGE CENTRES
FFIINNAANNCCIIAALL RREESSUULLTTSS OOVVEERRVVIIEEWW
In fiscal 2021, SVI acquired 29 stores for $270.2 million. In fiscal 2020, SVI acquired 16 stores and one piece of
vacant land for $232.7 million. The timing of these acquisitions affects the comparative results.
SSeelleecctteedd FFiinnaanncciiaall IInnffoorrmmaattiioonn
(unaudited)
TThhrreeee MMoonntthhss EEnnddeedd DDeecceemmbbeerr 3311
(audited)
FFiissccaall
22002211
2020
$$
%
22002211
2020
$$
%
CChhaannggee
CChhaannggee
Storage revenue and related services
$$
5566,,336644,,779955
$
41,592,792
$
14,772,003
35.5%
$$
220066,,662255,,993333
$
153,394,776
$
53,231,157
Management fees
448800,,449944
557,497
(77,003)
-13.8%
22,,003344,,774455
2,069,146
(34,401)
Operating costs
Net operating income 1
Less:
5566,,884455,,228899
42,150,289
14,695,000
1199,,002266,,111111
13,798,341
3377,,881199,,117788
28,351,948
5,227,770
9,467,230
34.9%
37.9%
33.4%
220088,,666600,,667788
155,463,922
53,196,756
6699,,666600,,334466
51,250,858
18,409,488
113399,,000000,,333322
104,213,064
34,787,268
Acquisition and integration costs
Selling, general and administrative
Interest
22,,770000,,330066
44,,885599,,667700
5,039,927
4,542,505
1155,,662233,,997755
12,500,650
Stock based compensation
1100,,775500,,668877
6,318,156
(2,339,621)
-46.4%
317,165
3,123,325
4,432,531
7.0%
25.0%
70.2%
88,,002277,,337733
1177,,881177,,559944
5588,,550088,,449922
1111,,228888,,333355
7,402,034
625,339
15,550,356
2,267,238
45,820,583
12,687,909
6,318,156
4,970,179
34.7%
-1.7%
34.2%
35.9%
33.4%
8.4%
14.6%
27.7%
78.7%
Unrealized (gain) loss on derivative
financial instruments
Unrealized (gain) loss on interest
rate swap contracts
((66,,114422,,774477))
-
(6,142,747)
-
((66,,114422,,774477))
-
(6,142,747)
-
--
(9,291,210)
9,291,210
-100.0%
--
(9,291,210)
9,291,210
-100.0%
Depreciation and amortization
2244,,552211,,993388
21,100,449
3,421,489
16.2%
9933,,118899,,338877
82,558,426
10,630,961
12.9%
5522,,331133,,882299
40,210,477
12,103,352
30.1%
118822,,668888,,443344
148,358,345
34,330,089
23.1%
Net income (loss) before taxes
((1144,,449944,,665511))
(11,858,529)
(2,636,122)
22.2%
((4433,,668888,,110022))
(44,145,281)
457,179
-1.0%
Deferred tax recovery
11,,448899,,119911
1,870,681
(381,490)
-20.4%
77,,882233,,001100
10,863,059
(3,040,049)
-28.0%
Net income (loss)
$$
((1133,,000055,,446600))
$
(9,987,848)
$
(3,017,612)
30.2%
$$
((3355,,886655,,009922))
$
(33,282,222)
$
(2,582,870)
7.8%
Weighted average number of common shares outstanding
Basic
Diluted
337733,,556677,,119933
364,460,666
337733,,556677,,119933
364,460,666
9,106,527
9,106,527
2.5%
2.5%
337700,,226677,,662299
363,469,712
337700,,226677,,662299
363,469,712
6,797,917
6,797,917
1.9%
1.9%
Net income (loss) per common share
Basic
Diluted
1 Non-IFRS Measure.
$$
((00..003355))
$
(0.027)
$$
((00..003355))
$
(0.027)
$$
((00..009977))
$
(0.092)
$$
((00..009977))
$
(0.092)
Storage revenue and related services
For the three months ended December 31, 2021, the Corporation had revenues of $56.4 million (December 31,
2020 - $41.6 million), an increase of 35.5% for the quarter and contributing to a $53.2 million or 34.7% increase
for the fiscal year. This increase is attributable to incremental revenue from organic revenue growth and from the
stores acquired in the current and prior fiscal year. For additional information, see “Segmented, Existing and New
Self Storage and Portable Storage Results.”
Management fees
For the three months ended December 31, 2021, management fees have changed by 13.8% over the same prior
year periods. The change is a result of the Corporation acquiring managed stores, reducing the number of stores
in our third party management platform.
11
Annual Report 2021 | 63
CANADA SELF STORAGE CENTRES
Operating costs
Operating costs for the three months ended December 31, 2021 were $19.0 million (December 31, 2020 - $13.8
million). The increase relates to stores acquired in 2021 and 2020 and increases in advertising, property taxes and
wages (mainly incentives earned by our store teams).
Net income (loss)
Our net loss of $13.0 million for the three months ended December 31, 2021 results from non-cash items of $24.5
million of depreciation and amortization and $10.8 million in stock based compensation, and which is offset by the
recovery of $1.5 million of deferred tax.
Net operating income
For the three months ended December 31, 2021, the Corporation had net operating income (NOI), a non-IFRS
measure, of $37.8 million (December 31, 2020 - $28.4 million), an increase of 33.4% for quarter and contributing
to a $34.8 million or 33.4% increase for the fiscal year. The increase was due to increased occupancy, increased
rates through our revenue management systems, controlling costs, NOI from assets purchased in throughout fiscal
2021 and 2020 and from streamlining and integration of operations.
Acquisition and integration costs
Acquisition and integration costs include costs and professional fees incurred to identify, qualify, close and
integrate the assets purchased and pending, as well as transactions that we elected not to pursue. SVI closed
$270.2 million of acquisitions in fiscal 2021, following closing $232.7 million in acquisitions in fiscal 2020 and
$372.7 million in fiscal 2019.
Selling, general and administrative
Selling, general and administrative expenses include all expenses not related to the stores including corporate
office overhead and payroll, operations platform innovation and professional fees. These costs have increased as
a result of increased activity associated with the growth and anticipated future growth of the business.
Interest
Interest expense increased as the total amount of debt outstanding increased with the current and prior year
acquisitions. As at December 31, 2021, our debt was $1.3 billion compared to $1.2 billion at December 31, 2020.
Depreciation and amortization
The increase in depreciation and amortization expense is primarily due to depreciating the additional assets
acquired throughout fiscal 2021 and full year of depreciation for assets acquired in fiscal 2020.
64 | Annual Report 2021
12
CANADA SELF STORAGE CENTRES
FFuunnddss ffrroomm OOppeerraattiioonnss ((FFFFOO)) aanndd AAddjjuusstteedd FFuunnddss ffrroomm OOppeerraattiioonnss ((AAFFFFOO))
FFO and AFFO are non-IFRS measures. They allow management and investors to evaluate the financial results of
an entity without taking into consideration the impact of non-cash items and non-recurring acquisition and
integration costs on the Consolidated Statement of Income (Loss) and Comprehensive Income (Loss). Net income
(loss) assumes that the values of our assets diminish over time through depreciation and amortization, irrespective
of the value of our real estate assets in the open market. Other non-cash and non-recurring capital items include
stock based compensation costs, deferred income tax expenses (recoveries), unrealized gain or loss on interest
rate swap contracts, unrealized gain or loss on derivative financial instruments and acquisition and integration
costs, if any. Acquisition and integration costs, adjusted for in our AFFO, are one time in nature to the specific
assets purchased or pending. While the specific acquisition and integration costs may vary from period to period,
given that the Corporation is planning to continue to complete acquisitions as part of its growth strategy, these
costs will continue to be included as an adjustment in determining AFFO (i.e. the amount of the costs are "non-
recurring" but the actual adjustment for these types of costs is "recurring").
FFO for the three months and fiscal year ended December 31, 2021 was $14.6 million and $54.6 million versus
$6.3 million and $35.4 million, respectively for the same period in 2020, a 133.5% and 54.2% increase. These
increases are the result of contributions from strong operational performance and from assets purchased.
AFFO for the three months and fiscal year ended December 31, 2021 was $17.3 million and $62.7 million versus
$11.3 million and $42.8 million, respectively for the same period in 2020, a 53.3% and 46.3% increase. These
increases are the result of contributions from strong operational performance and from assets purchased.
Both the FFO and AFFO are 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 fiscal 2021, these acquisitions
reduced our FFO and AFFO by $0.7 million. The Corporation expects to be cash flow positive and realize the
benefits of these acquisitions commencing in fiscal 2022 and at stabilization that these assets will add
approximately $3.0 million in incremental FFO and AFFO.
The FFO and AFFO for the three months and fiscal year ended December 31, 2021 and 2020 are:
(unaudited)
TThhrreeee MMoonntthhss EEnnddeedd DDeecceemmbbeerr 3311
(audited)
FFiissccaall
22002211
22002200
CChhaannggee
22002211
22002200
CChhaannggee
$
%
$
%
Net income (loss)
$$
((1133,,000055,,446600))
$
(9,987,848)
$
(3,017,612)
30.2%
$$
((3355,,886655,,009922))
$
(33,282,222)
$
(2,582,870)
7.8%
Adjustments:
Stock based compensation
1100,,775500,,668877
6,318,156
4,432,531
70.2%
1111,,228888,,333355
6,318,156
4,970,179
78.7%
Unrealized (gain) loss on derivative
financial instruments
Unrealized (gain) loss on interest
rate swap contracts
((66,,114422,,774477))
-
(6,142,747)
-
((66,,114422,,774477))
-
(6,142,747)
-
--
(9,291,210)
9,291,210
-100.0%
--
(9,291,210)
9,291,210
-100.0%
Deferred tax recovery
((11,,448899,,119911))
(1,870,681)
381,490
-20.4%
((77,,882233,,001100))
(10,863,059)
3,040,049
-28.0%
Depreciation and amortization
2244,,552211,,993388
21,100,449
3,421,489
16.2%
9933,,118899,,338877
82,558,426
10,630,961
12.9%
FFO 1
Adjustments:
2277,,664400,,668877
16,256,714
11,383,973
70.0%
9900,,551111,,996655
68,722,313
21,789,652
31.7%
$$
1144,,663355,,222277
$
6,268,866
$
8,366,361
133.5%
$$
5544,,664466,,887733
$
35,440,091
$
19,206,782
54.2%
Acquisition and integration costs
22,,770000,,330066
5,039,927
(2,339,621)
-46.4%
88,,002277,,337733
7,402,034
625,339
8.4%
AFFO 1
1 Non-IFRS Measure.
$$
1177,,333355,,553333
$
11,308,793
$
6,026,740
53.3%
$$
6622,,667744,,224466
$
42,842,125
$
19,832,121
46.3%
13
Annual Report 2021 | 65
CANADA SELF STORAGE CENTRES
AAnnnnuuaalliizzeedd NNeett OOppeerraattiinngg IInnccoommee aanndd FFuunnddss ffrroomm OOppeerraattiioonnss
The Company completed the purchase of 29 stores in fiscal 2021 and the revenues and operating expenses from
each acquisition are reflected in the statements from the date of acquisition forward for these stores. In order to
understand a full year of operations with the acquired assets, utilizing historical data, we have prepared an
annualized NOI, FFO and AFFO (all non-IFRS measures) statement annualizing the revenues and expenses as if
the stores purchased in fiscal 2021, were purchased as of January 1, 2021 and owned for the entire 12-month
period.
The results of this annualized statement show that NOI, FFO and AFFO would be higher by $7.8 million, $6.2
million and $6.2 million, respectively. NOI would have been $146.8 million, FFO would be $60.9 million and the
AFFO would be $68.9 million. This annualization continues to be muted by the $114.6 million in new build and
lease-up stores and raw land acquisitions made in Q4 2020. The Corporation expects that at stabilization, these
assets will add approximately $3 million in incremental NOI.
FFoorr tthhee YYeeaarr EEnnddeedd DDeecceemmbbeerr 3311,, 22002211
Actual
AAnnnnuuaalliizzeedd RReessuullttss
Incremental
Notes
Storage revenue and related services
$
206,625,933
$$
221188,,444400,,334455
$
11,814,412
1
Management fees
Property operating costs
NNeett ooppeerraattiinngg iinnccoommee
Adjustments:
Acquisition and integration costs
Selling, general and administrative
Interest
2,034,745
208,660,678
69,660,346
139,000,332
8,027,373
17,817,594
58,508,492
84,353,459
22,,003344,,774455
222200,,447755,,009900
7733,,770077,,889966
114466,,776677,,119944
88,,002277,,337733
1188,,440088,,331155
5599,,444411,,551155
8855,,887777,,220033
FFuunnddss ffrroomm OOppeerraattiioonnss
54,646,873
6600,,888899,,999911
Adjustment:
-
11,814,412
4,047,550
7,766,862
-
590,721
933,023
1,523,744
6,243,118
1
2
3
4
Acquisition and integration costs
8,027,373
88,,002277,,337733
-
2
AAddjjuusstteedd FFuunnddss ffrroomm OOppeerraattiioonnss
$
62,674,246
$$
6688,,991177,,336644
$
6,243,118
Note 1 – the results from all stores acquired in fiscal 2021, have been adjusted as if the purchase occurred on
January 1, 2021. For revenues, we assumed achieved occupancies and rent per square foot were repeated from
the period prior to acquisition. Information regarding expenses incurred during 2021 and prior to acquisition, has
been sourced from due diligence materials received during the acquisition process to determine a full year of
operating costs.
Note 2 – these costs are one time in nature and do not change based on acquisition date.
Note 3 – based on existing scale and management infrastructure.
Note 4 – annualized amount determined based on interest rate and debt outstanding at December 31, 2021.
66 | Annual Report 2021
14
CANADA SELF STORAGE CENTRES
SSeeggmmeenntteedd,, EExxiissttiinngg aanndd NNeeww SSeellff SSttoorraaggee aanndd PPoorrttaabbllee SSttoorraaggee RReessuullttss
The Corporation operates three reportable business segments - self storage, portable storage and management
fees. Self storage involves customers renting space at the Corporation’s property for short or long term storage.
Portable storage involves delivering a storage unit to the customer. The customer can choose to keep the portable
storage unit at their location or have it moved to one of our locations. Management fees are revenues generated
from the management of stores owned by third parties.
Revenue, operating costs and net operating income
Revenue
Existing Self Storage 1
New Self Storage 1
(unaudited)
Three Months Ended December 31
(audited)
Fiscal
2021
2020
Change
2021
2020
Change
$
%
$
%
$
41,980,296
$
35,913,162
$
6,067,134
16.9%
$
161,105,286
$
136,076,029
$
25,029,257
18.4%
11,617,246
3,483,753
8,133,493
233.5%
Total Self Storage
53,597,542
39,396,915
14,200,627
36.0%
Portable Storage
Management Fees
2,767,253
480,494
2,195,877
557,497
571,376
(77,003)
Combined
56,845,289
42,150,289
14,695,000
26.0%
-13.8%
34.9%
35,000,602
196,105,888
10,520,045
2,034,745
9,515,108
25,485,494
267.8%
145,591,137
50,514,751
34.7%
7,803,639
2,716,406
34.8%
2,069,146
(34,401)
-1.7%
208,660,678
155,463,922
53,196,756
34.2%
Operating Costs
Existing Self Storage
12,307,024
10,666,469
1,640,555
15.4%
New Self Storage
Total Self Storage
4,810,360
17,117,384
1,578,355
3,232,005
204.8%
12,244,824
4,872,560
39.8%
47,299,126
15,166,068
62,465,194
41,372,352
5,926,774
14.3%
4,554,185
10,611,883
233.0%
45,926,537
16,538,657
36.0%
Portable Storage
1,908,727
1,553,517
355,210
Combined
19,026,111
13,798,341
5,227,770
22.9%
37.9%
7,195,152
5,324,321
1,870,831
35.1%
69,660,346
51,250,858
18,409,488
35.9%
Net Operating Income
1
Existing Self Storage
29,673,272
25,246,693
4,426,579
17.5%
113,806,160
94,703,677
19,102,483
20.2%
New Self Storage
Total Self Storage
Portable Storage
Management Fees
6,806,886
36,480,158
858,526
480,494
1,905,398
4,901,488
257.2%
19,834,534
4,960,923
14,873,611
299.8%
27,152,091
9,328,067
34.4%
133,640,694
99,664,600
33,976,094
34.1%
642,360
557,497
216,166
(77,003)
33.7%
-13.8%
3,324,893
2,034,745
2,479,318
2,069,146
845,575
(34,401)
34.1%
-1.7%
Combined
$
37,819,178
$
28,351,948
$
9,467,230
33.4%
$
139,000,332
$
104,213,064
$
34,787,268
33.4%
1 Non -IFRS Measure.
Existing Self Storage
For the three months ended December 31, 2021, revenue and NOI increased by 16.9% and 17.5%, respectively,
over the same prior year period, resulting in a full year revenue and NOI growth of 18.4% and 20.2%. In the midst
of COVID-19, the Corporation achieved 4.8% revenue and 5.0% NOI growth for fiscal 2020, strong results
compared to our peers. Revenue and NOI increases are a result from the strength of our business, continued
execution of our revenue management program and increased occupancy. For operating costs, we continue to
control costs through operational efficiencies, however we experienced increases in advertising, property taxes
and wages (mainly incentives earned by our store teams).
New Self Storage
Increase is a result of acquiring stores in 2021 and throughout 2020 resulting in revenue, operating costs and NOI
growth as we commenced reporting results.
Portable Storage
Increase in revenue and NOI was generally due to occupancy increases, resulting in full year NOI growth of 34.1%.
15
Annual Report 2021 | 67
CANADA SELF STORAGE CENTRES
Quarterly net operating income
The Corporation’s quarterly results are affected by the timing of acquisitions, both in the current year and prior
year. SVI also incurs non-recurring initial expenses when a new location is acquired. These costs may include
labor, severance, training, travel, advertising and or office expenses.
The storage business is subject to seasonality. There is naturally more activity in the warmer months and less
activity in the colder months. Operating costs are higher during the winter months due to heating and snow
removal costs resulting in lower NOI margins in Q1 and Q4, versus Q2 and Q3. This is consistent with results
experienced in the Northern US.
Fiscal 2021 ('000)
Fiscal 2020 ('000)
Q4
Q3
Q2
Q1
Total
Q4
Q3
Q2
Q1
Total
NOI 1
Existing Self Storage
$
29,673
$
31,276
$
29,022
$
23,835
$
113,806
$
25,247
$
24,958
$
23,182
$
21,316
$
94,704
New Self Storage
6,807
5,825
4,622
Total Self Storage
36,480
37,101
33,644
2,581
26,416
19,835
133,641
1,905
1,120
1,047
889
4,961
27,152
26,078
24,229
22,205
99,665
Portable Storage
Management Fees
859
480
1,169
536
844
529
454
490
3,325
2,035
642
557
853
585
575
488
410
439
2,479
2,069
$
37,819
$
38,805
$
35,017
$
27,359
$
139,000
$
28,352
$
27,516
$
25,292
$
23,054
$
104,214
1 Non-IFRS Measure
Existing Self Storage
The increase in Q4 2021 over Q4 2020 was driven from continued execution of our revenue management program,
occupancy increases and controlling costs through operational efficiencies.
New Self Storage
SVI has acquired 29 stores fiscal 2021 and 16 stores in 2020. These additions have resulted in NOI growth quarter
over quarter as we commenced reporting results.
Portable Storage
Increase in revenue and NOI was generally due to occupancy increases and cost savings.
68 | Annual Report 2021
16
CANADA SELF STORAGE CENTRES
SSuummmmaarryy ooff QQuuaarrtteerrllyy RReessuullttss (unaudited)
RReevveennuuee
$56,845,289
NNeett IInnccoommee //
((LLoossss))
($13,005,460)
NNeett IInnccoommee
// ((LLoossss)) ppeerr
sshhaarree
($0.035)
FFuullllyy ddiilluutteedd
NNeett IInnccoommee //
((LLoossss)) ppeerr
sshhaarree
($0.035)
PPeerriioodd
22002211 –– QQ44
22002211 –– QQ33
22002211 –– QQ22
22002211 –– QQ11
$56,854,002
($4,286,770)
$51,701,291
($7,172,789)
$43,260,095
($11,400,073)
($0.012)
($0.019)
($0.031)
TToottaall 22002211
$$220088,,666600,,667788
(($$3355,,886655,,009922))
NN//AA
22002200 -- QQ44
22002200 -- QQ33
22002200 -- QQ22
22002200 -- QQ11
$42,150,289
($9,987,848)
$40,053,371
($6,276,846)
$37,425,908
($8,651,142)
$35,834,354
($8,366,386)
($0.027)
($0.017)
($0.024)
($0.023)
TToottaall 22002200
$$115555,,446633,,992222
(($$3333,,228822,,222222))
NN//AA
22001199 -- QQ44
22001199 -- QQ33
22001199 -- QQ22
22001199 -- QQ11
$37,174,365
($11,563,878)
$37,310,765
($9,399,776)
$34,255,855
($16,310,988)
$26,222,055
($8,843,827)
($0.032)
($0.026)
($0.045)
($0.025)
TToottaall 22001199
$$113344,,996633,,004400
(($$4466,,111188,,446699))
NN//AA
22001188 -- QQ44
22001188 -- QQ33
22001188 -- QQ22
22001188 -- QQ11
$26,562,429
($843,810)
$25,733,852
($6,355,654)
$23,173,856
($9,158,368)
$20,913,462
($7,793,463)
($0.002)
($0.018)
($0.026)
($0.022)
TToottaall 22001188
$$9966,,338833,,559999
(($$2244,,115511,,229955))
NN//AA
22001177 -- QQ44
22001177 -- QQ33 11
22001177 -- QQ22
22001177 -- QQ11 11
$20,744,110
$15,343,505
$18,453,960
($15,402,377)
$12,557,306
($2,995,895)
$10,133,138
($10,797,865)
$0.044
($0.046)
($0.010)
($0.037)
TToottaall 22001177
$$6611,,888888,,551144
(($$1133,,885522,,663322))
NN//AA
22001166 -- QQ44
22001166 -- QQ33
22001166 -- QQ22
22001166 -- QQ11
$8,900,182
($18,657,288)
$7,307,070
$6,320,322
$5,296,970
($537,379)
($663,764)
($1,331,005)
($0.070)
($0.022)
($0.004)
($0.008)
TToottaall 22001166
$$2277,,882244,,554444
(($$2211,,118899,,443366))
NN//AA
22001155 -- QQ44
22001155 -- QQ33
22001155 -- QQ22
22001155 -- QQ11
$4,795,266
$3,137,527
$2,111,281
$1,096,513
($2,702,281)
($821,330)
($677,127)
($374,472)
($0.026)
($0.012)
($0.012)
($0.010)
TToottaall 22001155
$$1111,,114400,,558877
(($$44,,557755,,221100))
NN//AA
($0.012)
($0.019)
($0.031)
NN//AA
($0.027)
($0.017)
($0.024)
($0.023)
NN//AA
($0.032)
($0.026)
($0.045)
($0.025)
NN//AA
($0.002)
($0.018)
($0.026)
($0.022)
NN//AA
$0.044
($0.046)
($0.010)
($0.037)
NN//AA
($0.070)
($0.022)
($0.004)
($0.008)
NN//AA
($0.026)
($0.012)
($0.012)
($0.010)
NN//AA
TToottaall AAsssseettss
$1,836,156,209
TToottaall LLiiaabbiilliittiieess
$1,613,949,693
DDiivviiddeennddss
$1,034,371
$1,710,707,686
$1,503,314,182
$1,021,120
$1,693,800,047
$1,487,413,665
$1,012,517
$1,610,798,998
$1,403,279,361
$1,002,868
NN//AA
NN//AA
$$44,,007700,,887766
$1,587,379,939
$1,377,204,772
$1,354,801,560
$1,149,197,801
$1,369,097,150
$1,155,700,318
$1,371,022,824
$1,151,432,603
$991,452
$978,240
$973,985
$966,317
NN//AA
NN//AA
$$33,,990099,,999944
$1,392,865,962
$1,162,117,984
$1,377,237,690
$1,134,721,033
$1,385,491,977
$1,132,963,923
$1,044,914,091
$794,584,280
$961,654
$958,230
$952,321
$930,288
NN//AA
NN//AA
$$33,,880022,,449933
$1,022,791,417
$761,864,860
$990,262,630
$731,939,098
$959,256,102
$694,025,713
$922,656,903
$661,214,665
$925,235
$920,981
$920,562
$889,786
NN//AA
NN//AA
$$33,,665566,,556644
$895,496,381
$627,421,264
$839,525,204
$585,777,091
$400,216,946
$237,005,503
$404,743,767
$238,025,850
$880,328
$879,376
$765,016
$749,946
NN//AA
NN//AA
$$33,,227744,,666666
$342,803,581
$187,115,587
$253,955,856
$131,931,530
$179,885,223
$118,343,352
$724,931
$630,309
$440,398
$176,728,097
$114,010,014
-
NN//AA
NN//AA
$$11,,779955,,663388
$171,486,477
$112,922,559
$108,865,822
$85,594,955
$54,449,748
$25,372,609
$27,910,360
$25,033,929
NN//AA
NN//AA
-
-
-
-
--
Note 1:
The Corporation reversed $12,420,000 of goodwill impairment taken in Q1 2017 and Q3 2017.
The Q1 2017 goodwill impairment that was recorded was $5,361,176, and as a result, Q1 2017 previously reported
net loss of $10,797,865, would have been $5,436,689 without such goodwill impairment. The Q3 2017 goodwill
impairment that was recorded was $7,058,823, and as a result, Q3 2017 reported net loss of $15,402,377 would
have been $8,343,553 without such goodwill impairment.
The previously reported Total Assets for Q1 2017 of $404,743,767 would have been $410,104,943. The previously
reported Total Assets for Q2 2017 of $400,216,946 would have been $405,578,122. The previously reported Total
Assets for Q3 2017 of $839,525,204 would have been $851,945,204.
17
Annual Report 2021 | 69
CANADA SELF STORAGE CENTRES
WWOORRKKIINNGG CCAAPPIITTAALL,, DDEEBBTT AANNDD SSHHAARREE CCAAPPIITTAALL
WWoorrkkiinngg CCaappiittaall
Cash provided by operating activities was $59.0 million for the fiscal year ended December 31, 2021, compared
to $38.5 million for the same prior year period. The increase arises from increased rates through our revenue
management systems, increased occupancy, controlling costs and continued streamlining and integration of
operations and despite higher acquisition and integrations costs.
As at December 31, 2021, the Corporation had $25.1 million of cash compared to $25.5 million at December 31,
2020. Despite cash being used to pay down debt and fund acquisitions and expansions, the Corporation continues
to maintain a strong cash balance. The Corporation expects its cash flow from operations to continue to increase
as the full benefit of stores purchased in 2020 and 2021 are realized and we continue to execute our operational
plans. In addition, the Corporation will borrow against existing assets to fund acquisitions and its expansion plans.
DDeebbtt
As at December 31, 2021 and December 31, 2020, the Corporation held the following debt:
DDeecceemmbbeerr 3311,, 22002211
WWeeiigghhtteedd
AAvveerraaggee
RRaattee
RRaannggee
BBaallaannccee
December 31, 2020
Weighted
Average
Rate
Range
Balance
2.84% to 5.50%
3.99%
444466,,669911,,002233
Maturity: Jan 2022 to Apr 2028
3.18% to 4.99% 4.19%
Maturity: Apr 2021 to Apr 2028
382,219,232
445555,,117733,,227799
99,,887733,,993377
446655,,004477,,221166
3.82%
394,261,163
31,912,305
426,173,468
3.93%
Maturity: Jan 2024 to Dec 2030
Maturity: Jan 2024 to Dec 2030
3.91%
991111,,773388,,223399
4.05%
808,392,700
MMoorrttggaaggeess
At amortized cost - Fixed/Variable
At FVTPL - Variable
- Interest rate swap
LLiinneess ooff CCrreeddiitt aanndd PPrroommiissssoorryy NNootteess
At amortized cost - Variable
3.53%
8866,,990099,,446688
3.54%
61,413,656
Maturity: May 2024 to Dec 2024
Maturity: Dec 2022 to May 2024
At amortized cost - Fixed
3.95%
3388,,553366,,220000
4.25%
13,750,069
Maturity: Apr 2022 to Dec 2023
Maturity: Jan 2021 to Dec 2023
At FVTPL - Variable
- Interest rate swap
229966,,004488,,772299
33,,995511,,227711
330000,,000000,,000000
3.94%
280,244,148
19,755,852
300,000,000
3.97%
Maturity: Feb 2025
Maturity: Apr 2022
Deferred financing costs, net of accretion
of $7,008,470 (Dec 31, 2020 - $4,871,753)
3.86%
442255,,444455,,666688
3.84%
375,163,725
((44,,770099,,116622))
(3,817,293)
3.89%
11,,333322,,447744,,774455
3.98%
11,,117799,,773399,,113322
70 | Annual Report 2021
18
CANADA SELF STORAGE CENTRES
RReeccoonncciilliiaattiioonn ooff DDeebbtt
The following table reconciles the changes in cash flows from financing activities for the Corporation's debt:
DDeecceemmbbeerr 3311,, 22002211
December 31, 2020
Debt, beginning of period
$$
11,,117799,,773399,,113322
$
1,053,079,602
Advances from debt
Repayment of debt
Amounts offset against accounts receivable
Change in fair value of debt measured at FVTPL
Change in fair value of interest rate swaps
Total cash flow from debt financing activities
330099,,111100,,228855
((115522,,995533,,228822))
((22,,552299,,552211))
3377,,884422,,994499
((3377,,884422,,994499))
115533,,662277,,448822
264,041,758
(123,419,291)
(4,710,939)
(51,668,157)
42,376,947
126,620,318
Change in deferred financing costs
((889911,,886699))
39,212
Debt, end of period
$$
11,,333322,,447744,,774455
$
1,179,739,132
The bank prime rate at December 31, 2021 was 2.45% (December 31, 2020 - 2.45%). The weighted average cost
of debt at December 31, 2021 is 3.89% (December 31, 2020 - 3.98%). The Corporation’s variable interest rate
exposure is limited as it has significant fixed interest rate debt.
The weighted years to maturity, excluding lines of credit, at December 31, 2021 is 4.09 years (December 31, 2020
– 4.93 years).
Mortgages are secured by a first mortgage charge on the real estate and equipment of the Corporation, general
security agreements, assignment of rents and leases and assignments of insurance coverages. The Corporation
must maintain certain financial ratios to comply with the facilities. These covenants include debt service coverage
ratios, a tangible net worth ratio, and a loan to value ratio. As of December 31, 2021 and December 31, 2020, the
Corporation is in compliance with all covenants.
The deferred financing costs are made up of fees and costs incurred to obtain the related mortgage financing, less
accumulated amortization into income of these costs.
Principal repayments on debt and lines of credit in each of the next five years are estimated as follows:
Year 1
Year 2
Year 3
Year 4
Year 5
Thereafter
$
$
$
$
$
$
650,808,808 (includes lines of credit of $386.9 million)
61,303,321
220,833,105
24,739,091
31,941,589
347,357,993
Of the repayments shown in Year 1, $15.8 million are required under our amortizing term debt mortgages, $248.1
million relates to loans due in the upcoming twelve months that are expected to be refinanced, and $386.9 million
relates to our lines of credit. Our lines of credit are covenant based (debt service coverage ratios, tangible net
worth ratios, and loan to value ratios) and do not require repayment as long as the covenants are met. As of
December 31, 2021 and December 31, 2020, the Corporation is in compliance with all covenants.
19
Annual Report 2021 | 71
CANADA SELF STORAGE CENTRES
The Corporation terms out assets on our lines of credit when deemed appropriate, which includes determination
that the Corporation has been able to implement its operating systems to increase the value of the assets and that
the Corporation has an appropriate mix of assets supporting our lines of credit. The Corporation’s detailed debt
maturity profile as at December 31, 2021 is:
Contractual Mortgage Maturities and Interest Rates
Year of
Debt
Maturity
2022
2023
2024
2025
2026
Thereafter
$
Mortgages
Payable
213,561,160
42,545,744
210,542,015
14,330,758
21,371,272
409,387,290
911,738,239
$
Weighted
Average
Interest
Rate
4.33%
4.46%
3.25%
3.59%
3.49%
4.00%
3.91%
Weighted
Average
Interest Rate
4.00%
3.50%
3.53%
3.94%
0.00%
0.00%
3.86%
Lines of Credit
$
34,536,200
4,000,000
86,909,468
300,000,000
-
-
$
425,445,668
Deferred financing costs net of accretion
Balance
Weighted
Average
Interest
Rate
4.29%
4.38%
3.33%
3.59%
3.49%
4.00%
3.89%
Total Debt
$
248,097,360
46,545,744
297,451,483
314,330,758
21,371,272
409,387,290
1,337,183,907
(4,709,162)
$
1,332,474,745
The Corporation entered into interest rate swap contracts in order to fix the interest rate on $765.0 million of debt
at a weighted average rate of 3.87%. The swaps mature between January 2024 and December 2030.
HHyybbrriidd DDeebbeennttuurreess
2020 Hybrid Debentures
On July 20, 2020, $75 million of unsecured senior hybrid debentures were issued at a price of $1,000 per
debenture with a term of sixty-six months, due January 31, 2026. These debentures bear a fixed interest rate of
5.75% per annum, payable semi-annually in arrears on January 31 and July 31 of each year, commencing January
31, 2021. The intended use of the net proceeds of the debentures is to pay down the credit facility and fund
anticipated capital expenditures.
On and after January 31, 2024 and prior to January 31, 2025, the debentures will be redeemable in whole or in
part from time to time at the Corporation’s option at a redemption price equal to 102.875% of the principal amount
of the debentures redeemed plus accrued and unpaid interest, if any, up to but excluding the date set for
redemption. On and after January 31, 2025 and prior to the maturity date, the debentures will be redeemable, in
whole or in part, from time to time at the Corporation’s option at par plus accrued and unpaid interest, if any, up
to but excluding the date set for redemption.
On redemption or at maturity on January 31, 2026, the Corporation may elect to, in whole or part, convert the
debentures into freely tradable common shares. In such event, payment will be satisfied by delivering for each
$1,000 due, that number of freely tradable shares obtained by dividing $1,000 by 95% of the current market price
on the date fixed for redemption or maturity, as the case may be. Any accrued and unpaid interest will be paid in
cash.
The debentures were recorded as a financial instrument. The debentures were recorded at a fair value of $75
million net of deferred financing costs of $3.5 million. Each embedded feature was evaluated separately and it was
determined that the economic and risk characteristics are closely related to the host contract and therefore were
not accounted for as separate financial instruments.
72 | Annual Report 2021
20
CANADA SELF STORAGE CENTRES
2021 Hybrid Debentures
On July 19, 2021, $57.5 million of unsecured senior hybrid debentures were issued at a price of $1,000 per
debenture with a term of sixty-six months, due September 30, 2026. These debentures bear a fixed interest rate
of 5.5% per annum, payable semi-annually in arrears on March 31 and September 30 of each year, commencing
September 30, 2021. The intended use of the net proceeds of the debentures is to fund potential future
opportunities and for general corporate purposes.
On and after September 30, 2024 and prior to September 30, 2025, the debentures will be redeemable in whole
or in part from time to time at the Corporation’s option at a redemption price equal to 102.750% of the principal
amount of the debentures redeemed plus accrued and unpaid interest, if any, up to but excluding the date set for
redemption. On and after September 30, 2025 and prior to the maturity date, the debentures will be redeemable,
in whole or in part, from time to time at the Corporation’s option at par plus accrued and unpaid interest, if any,
up to but excluding the date set for redemption.
On redemption or at maturity on September 30, 2026, the Corporation may elect to, in whole or part, convert the
debentures into freely tradable common shares. In such event, payment will be satisfied by delivering for each
$1,000 due, that number of freely tradable shares obtained by dividing $1,000 by 95% of the current market price
on the date fixed for redemption or maturity, as the case may be. Any accrued and unpaid interest will be paid in
cash.
The debentures were recorded as a financial instrument. The debentures were recorded at a fair value of $57.5
million net of deferred financing costs of $2.5 million. Each embedded feature was evaluated separately and it was
determined that the economic and risk characteristics are closely related to the host contract and therefore were
not accounted for as separate financial instruments..
The debentures are subsequently measured at amortized cost using the effective interest method over the life of
the debenture. The balance of the hybrid debentures is:
DDeecceemmbbeerr 3311,, 22002211
December 31, 2020
Opening balance
Additions during period
Issuance costs
Accretion during period
Ending balance
$$
7711,,776655,,772255
5577,,550000,,000000
((22,,555566,,550066))
884422,,666666
112277,,555511,,888855
$$
$
-
75,000,000
(3,524,177)
289,902
71,765,725
$
21
Annual Report 2021 | 73
CANADA SELF STORAGE CENTRES
SShhaarree CCaappiittaall
The common shares issued are:
Balance, December 31, 2019
Issued on acquisitions
Dividend reinvestment plan
Share option redemption
Share issuance costs
Common shares repurchased
Balance, December 31, 2020
Issued on acquisitions
Dividend reinvestment plan
Share option redemption
Share issuance costs
Common shares repurchased
Balance, December 31, 2021
Number of Shares
Amount
362,805,055
$
355,585,663
3,419,287
481,306
782,800
-
(1,233,622)
11,845,000
1,518,011
901,588
(25,121)
(3,938,229)
366,254,826
365,886,912
8,810,925
363,507
-
-
(792,815)
43,575,000
1,637,248
(548,300)
(31,608)
(3,953,358)
374,636,443
$
406,565,894
Dividend Reinvestment Plan
Represents common shares issued under the Corporation’s dividend reinvestment plan (“DRIP") for holders of
common shares approved on April 18, 2016. Under the terms of the DRIP, eligible registered holders of a minimum
of 10,000 Common Shares (the "Shareholders") may elect to automatically reinvest their cash dividends, payable
in respect to the common shares, to acquire additional common shares, which will be issued from treasury or
purchased on the open market. The Corporation may initially issue up to 5,000,000 common shares under the
DRIP, which may be increased upon Board of Directors approval, acceptance of the increase by the Exchange,
and upon public disclosure of the increase.
Stock Options
A total of 30,319,650 options were outstanding as at December 31, 2021 (December 31, 2020 – 23,639,650). Of
the outstanding amount, 30,319,650 options were exercisable (December 31, 2020 – 23,639,650). The details
are as follows:
Exercise Price
$
0.33
$
0.41
$
0.50
$
1.36
$
1.78
$
2.52
$
2.90
$
3.98
$
6.31
Options exercisable and outstanding
Vesting Date
Jun. 19, 2014
Apr. 28, 2015
Sep. 14, 2015
Dec. 21, 2016
Mar. 16, 2017
May 4, 2018
May 28, 2019
Dec. 15, 2020
Dec. 20, 2021
Expiry Date
Jun. 19, 2024
Apr. 28, 2025
Sep. 14, 2025
Dec. 21, 2026
Mar. 16, 2027
May 4, 2028
May 28, 2029
Dec. 15, 2030
Dec. 20, 2031
DDeecceemmbbeerr 3311,, 22002211 December 31, 2020
140,000
1,660,650
1,550,000
2,785,000
2,810,000
2,825,000
5,869,000
6,000,000
114400,,000000
11,,556600,,665500
11,,555500,,000000
22,,778855,,000000
22,,881100,,000000
22,,882255,,000000
55,,885544,,000000
55,,997755,,000000
66,,882200,,000000
3300,,331199,,665500
-
23,639,650
The Board of Directors of the Corporation may from time to time, at its discretion, and in accordance with the
Exchange requirements, grant to directors, officers, employees and consultants of the Corporation, non-
transferable options to purchase common shares.
74 | Annual Report 2021
22
CANADA SELF STORAGE CENTRES
Equity Incentive Plan
Under the Corporation’s Equity Incentive Plan passed on May 30, 2018 (the “Plan”), directors, employees and
consultants are eligible to receive awards, in the form of Restricted Share Units (“RSU’s”), Deferred Share Units
(“DSU’s”) and Named Executive Officer Restricted Share Units (“Neo RSU’s”), as and when granted by the Board,
at its sole discretion. The maximum number of awards that may be issued under the Plan is 17,545,677. The
maximum number of shares that may be reserved for issuance under the Plan, together with any of the
Corporation’s other share-based compensation arrangements, may not exceed 10% of the issued shares of the
Corporation.
The RSU’s and DSU’s that are granted vest in equal annual amounts over three years. The Neo RSU’s vest three
years after the date of grant. RSU’s, DSU’s and Neo RSU’s are entitled to be credited with dividend equivalents in
the form of additional RSU’s, DSU’s and Neo RSU’s, respectively.
With certain exceptions, the Plan provides that (i) the maximum number of awards that may be granted to any one
participant together with any other share-based compensation arrangements, in any 12 month period, may not
exceed 5% of the issued shares, and, in the case of any consultant, may not exceed 2% of the issued shares; and
(ii) the total value of all securities that may be issued to any non-employee director under all of the Corporation’s
security based compensation arrangements may not exceed $150,000 per annum.
The Corporation entered into Total Return Swaps (“TRS”) as economic hedges of the Corporation’s DSUs and
RSUs. Under the terms of the TRS, a bank has the right to purchase the Corporation’s shares in the marketplace as
a hedge against the returns in the TRS. At December 31, 2021, 1,533,556 TRS units were outstanding at a value
of $6,142,747.
At December 31, 2021, 100% of the combined DSU and RSU exposures were economically hedged (December
31, 2020 - 100%). Hedge accounting is not applied for the DSU/RSU hedging program.
During the year, the Corporation issued 282,906 common shares at a value of $1,131,624 (December 31, 2020 –
333,275 common shares at a value of $1,256,598) under the Plan. A total of 857,161 common shares at a value
of $3,282,260 were outstanding at December 31, 2021 (December 31, 2020 – 574,255 common shares at a value
of $2,150,636).
CCOONNTTRRAACCTTUUAALL OOBBLLIIGGAATTIIOONNSS AANNDD OOFFFF--BBAALLAANNCCEE SSHHEEEETT AARRRRAANNGGEEMMEENNTTSS
LLeeaassee LLiiaabbiilliittiieess
The Corporation leases buildings and land in Kamloops, BC, Montreal, QC, Sudbury, ON, Toronto, ON, Kitchener,
ON, Ottawa, ON, Etobicoke, ON, Whitby, ON and Winnipeg, MB. The leases expire between 2023 and 2057,
with the leases expiring in 2023 and 2027 having up to 15 years and 20 years of renewals, respectively, which are
expected to be exercised by the Corporation.
The lease liabilities are measured at the present value of the lease payments that are not paid at the balance sheet
date. Lease payments are apportioned between interest expense and a reduction of the lease liability using the
Corporation’s incremental borrowing rate to achieve a constant rate of interest on the remaining balances of the
liability.
For the year ended December 31, 2021, the Corporation recognized $2,054,942 (December 31, 2020 - $1,418,221)
in interest expense related to its lease liabilities.
A reconciliation of the lease liabilities associated with self storage properties from the date of adoption of IFRS 16
to December 31, 2021 is as follows:
23
Annual Report 2021 | 75
CANADA SELF STORAGE CENTRES
Balance, beginning of year
Additions
Cash Payments
Interest
Capitalized Interest
Balance, end of year
22002211
2020
$$
$$
4444,,003355,,005500
3355,,115522,,770033
((44,,331111,,991122))
22,,005544,,994422
116633,,995599
7777,,009944,,774422
$
25,491,060
19,695,524
(2,569,755)
1,418,221
-
$
44,035,050
CCoonnttiinnggeennccyy
The Corporation has no legal contingency provisions at December 31, 2021 or December 31, 2020.
OOffff--BBaallaannccee SShheeeett AArrrraannggeemmeennttss
The Corporation is not party to any industry contracts or arrangements other than those disclosed in the
consolidated financial statements.
RREELLAATTEEDD PPAARRTTYY TTRRAANNSSAACCTTIIOONNSS
The Corporation holds a Master Franchise from Canadian PUPS Franchises Inc. (CPFI) which provides the
Corporation with the exclusive Canadian franchise rights for the development and operation of portable storage
throughout Canada. CPFI is a corporation related to Steven Scott and Iqbal Khan who are directors of the
Corporation. The Corporation pays a monthly royalty of 3.5% on the gross sales. During the year ended December
31, 2021, the Corporation paid $382,592 (December 31, 2020 - $289,218) for royalties and $1,014,360 (December
31, 2020 - $nil) for storage containers and other equipment under the Master Franchise Agreement.
Included in accounts payable and accrued liabilities, relating to the previously noted transactions, at December
31, 2021 was $33,087 (December 31, 2020 - $25,231) payable to CPFI.
The Corporation has management agreements with Access Self Storage Inc. and related companies (“Access
Group”). These companies are related to Steven Scott and Iqbal Khan who are directors of the Corporation. The
Corporation invoices the Access Group for management fees as well as additional services it provides as part of
the management agreements. The Access Group will also invoice the Corporation for construction, maintenance
and other services related to its day-to-day operations.
During the year ended December 31, 2021, the Corporation received $6,856,964 (December 31, 2020 -
$5,877,719) in payments and reimbursements related to the management agreements. During the year ended
December 31, 2021, the Corporation also incurred $24,658,103 (December 31, 2020 - $20,491,351) in
expenditures related to construction, maintenance and other services related to its day-to-day operations.
Included in accounts payable and accrued liabilities as at December 31, 2021 was $1,503,979 (December 31, 2020
- $2,665,248) payable to the Access Group. Included in accounts receivable as at December 31, 2021 was $491,942
(December 31, 2020 - $349,185) receivable from the Access Group.
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the Corporation, directly and indirectly, and include directors. The remuneration of key
management personnel for employment services rendered are as follows:
DDeecceemmbbeerr 3311,, 22002211
December 31, 2020
Wages, management fees, bonuses and directors fees
Stock based compensation
$$
$
661122,,449977
55,,446699,,447788
66,,008811,,997755
629,644
3,404,873
4,034,517
$$
$
76 | Annual Report 2021
24
CANADA SELF STORAGE CENTRES
EENNVVIIRROONNMMEENNTTAALL,, SSOOCCIIAALL AANNDD GGOOVVEERRNNAANNCCEE ((EESSGG))
Environmental integrity, social responsibility and adherence to strong governance practices are core values at
StorageVault and we continue to focus on reducing the already extremely low environmental impact of our stores,
improving our engagement with colleagues and shareholders, supporting the communities in which we operate,
and maintaining sound corporate governance practices.
EEnnvviirroonnmmeennttaall
It is our responsibility to be leaders in the communities in which we live and work, to minimize our impact while
actively seeking opportunities to protect the environment and encourage sustainable operating practices. We
continuously explore opportunities to improve the environmental efficiency in our buildings and operations given
the importance to our company, our shareholders, our customers, and our communities.
Of all the real estate asset classes, self storage has the lowest environmental impact in the areas of energy
consumption, water consumption and waste production. While the self storage industry has an inherently light
environmental footprint, we proactively strive to be even better.
Strategically, we offer a mix of square footage that is non-climate controlled and climate controlled, with non-
climate controlled space having minimal environmental affect. For our properties that offer climate controlled
storage, we regulate inside temperatures at moderate levels to safeguard contents while minimizing energy
required for heating or cooling. Operationally, water usage is very low, and minimal daily client activity contributes
to limiting our carbon footprint within our communities.
At the end of 2021, StorageVault operated 28 stores with solar panels installed and will continue to expand solar
panel installations across our portfolio. Our solar panel installations utilize available roof space to generate
electricity for consumption while providing a solid financial return, demonstrating that sustainability efforts not only
benefit the environment and community, but also our shareholders.
Below are highlights of some of the environmental practices that we have adopted in an effort to reduce our overall
environmental footprint:
Energy Consumption
• motion controlled lighting by zone, allowing for usage only where and when required
•
LED lighting (internal and external) for all new buildings and light fixture replacements
•
solar power generation
• modern energy efficient HVAC systems
•
•
automated and self adjusting internal thermostat temperature controls
all new roofs installed are reflective “cool” roofs that help minimize energy consumption
Water Consumption
• given low occupant levels at our properties, on average, one washroom per property
• energy efficient plumbing systems and appliances
•
•
• water run-off controls
•
storm water retention
low-water irrigation systems
landscaping using native and drought-tolerant species
Waste Production
sale of recycled packaging materials
•
• waste recycling program at our stores and corporate offices
•
reduced paper usage through more efficient technology options including paperless rental agreements
• e-waste reduction and electronic recycling program for decommissioned computer equipment by either
donating refurbished equipment to local charities or recycling equipment that cannot be repurposed
25
Annual Report 2021 | 77
CANADA SELF STORAGE CENTRES
Building Design and Construction Practices
• energy efficient glazing
• use of SolarWall systems or insulated metal panels used in construction of new or retrofitted buildings
•
•
•
replacing standard exterior storage doors with energy efficient doors
insulated foundation walls to help maintain and keep the foundation slab warm
all proposed acquisitions are subject to environmental site assessments prior to the closing
SSoocciiaall
At StorageVault, we respect the role and impact we have in our host communities. We are proud to employ a
diverse team of over 700 colleagues, who represent both our communities and our customer bases, and who help
support the over 100 communities we are in across Canada. Diversity is in our DNA and is the foundation of our
strength and stability. We are proud that our culture of continuous improvement has led to a high number of
promotions within our organization. As colleagues, we believe that taking care of each other leads to a greater
level of care for our stores, customers and communities. We do so by focusing on engagement, advancement,
wellness and safety.
Being a community based business, we believe in giving back in the places where we live and work by supporting
local, grass-roots initiatives as well as national organizations. In 2021, StorageVault continued to support over 150
local, provincial and national organizations. Our dedicated Corporate Partnerships team’s mission is to align with
organizations across the country to support important initiatives that matter to our communities. We are
committed to engaging with our communities in a way that allows us to make meaningful and lasting contributions.
GGoovveerrnnaannccee
The Board and Management of StorageVault are committed to maintaining the highest standards of governance
to ensure long-term value for our shareholders, mitigate and manage risk and proactively protect the best interests
of all our stakeholders.
As part of StorageVault’s recent graduation to the TSX, we were subject to a strict audit, scrutiny and testing to
ensure that our corporate policies, practices and accounting standards met the TSX’s stringent compliance
requirements. Our corporate policies and standards promote the long-term interests of our shareholders,
strengthen management accountability and help maintain public trust in StorageVault.
Our Board and Management recognize the importance of equality, diversity and good corporate governance and
is dedicated to maintaining the highest governance standards through the following:
•
Independent Director led Audit, Acquisition and Governance, Nominating and Compensation
Committees
• Diverse Management team and Board and along with a comprehensive Diversity Policy
• 40% Board Diversity (gender and race)
• Acquisition Committee Mandate to review, approve and recommend transactions to the Board
• Annual review and vote to approve executive compensation
• Annual election by shareholders of Directors, CEO and CFO at AGM
• Whistleblower Policy
•
Insider Trading and Reporting Policy
• Disclosure and Confidentiality Policy
• Regular review and updates of all Corporate Governance principles and policies
• Code of Business Conduct & Ethics which is signed by all employees
• Majority Voting Policy (to be implemented at Annual General Meeting)
StorageVault continues to be recognized as a leader in gender diversification and equality. We are proud to
organically have this balance within our organization and continue to promote a culture of continuous
improvement, diversity of thought, development of skills, personal wellness and safety.
Our approach to governance and the continuous execution of sound ESG principles places StorageVault in a
strong position to deliver sustainable returns to our fellow shareholders while supporting our many stakeholders.
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AACCQQUUIISSIITTIIOONN CCOOMMMMIITTTTEEEE AANNDD AACCQQUUIISSIITTIIOONN CCOOMMMMIITTTTEEEE MMAANNDDAATTEE
The Corporation may, from time to time, purchase assets from parties related to the Corporation, and in particular,
assets or shares owned or controlled by management of the Corporation or Access Self Storage Inc. (Access) or
any of its subsidiaries or affiliates. To govern such potential related party transactions, the Corporation has
established an Acquisition Committee and an Acquisition Committee Mandate.
The Acquisition Committee is comprised of six voting members, four members being independently appointed
and independent of management and two of which are appointed by Access. Acquisition Committee members
who are deemed to be in a conflict of interest position with respect to related party transactions are required to
abstain from voting on such related party transactions.
The mandate of the Corporation’s Acquisition Committee is to review, evaluate, and approve the terms of
proposed acquisitions in the context of the current strategic direction of the Corporation. In particular, and with
respect to related party property acquisitions, the Acquisition Committee has the authority to appoint appraisers,
environmental consultants, and professional advisors to evaluate and report to the Acquisition Committee on the
suitability of such transactions. Thereafter, the Acquisition Committee provides its recommendation as to whether
the Board of Directors should approve an acquisition.
The Board of Directors of the Corporation must accept the recommendations that the Acquisition Committee
makes with respect to any related party transaction, and in particular, an acquisition involving assets or shares of
Access or any of its subsidiaries or affiliates.
AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS
The Corporation’s significant accounting policies are summarized in Note 3 to the December 31, 2021 annual
audited consolidated financial statements. There has been no change in significant accounting policies from the
Corporation’s audited consolidated annual financial statements from December 31, 2020. In addition, there has
been no change in the Company’s financial instrument risks.
NNoonn--IIFFRRSS FFiinnaanncciiaall MMeeaassuurreess
Management uses both IFRS and Non-IFRS Measures to assess the Corporation’s operating performance. In this
MD&A, management uses the following terms and ratios which do not have a standardized meaning under IFRS
and are unlikely to be comparable to similar measures presented by other companies:
i. Net Operating Income (“NOI”) – NOI is defined as storage and related services less operating costs. NOI
does not include interest expense or income, depreciation and amortization, selling, general and
administrative costs, acquisition and integration costs, stock based compensation costs or taxes. NOI
assists management in assessing profitability and valuation from principal business activities.
ii.
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, unrealized gains or losses from interest
rate swaps, 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.
iii.
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.
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CANADA SELF STORAGE CENTRES
iv.
Existing Self Storage and New Self Storage performance – “Existing Self Storage” are stores that the
Corporation has owned or leased since the beginning of the previous fiscal year. “New Self Storage” are
stores that have not been owned or leased continuously since the beginning of the previous fiscal year.
We believe the use of this metric combined with primary IFRS measures is beneficial in understanding the
full operating performance of our operations during a growth period. Comparative figures for the New
Self Storage and Existing Self Storage categories may differ from amounts reported in previous MD&A
reports.
RReecceenntt aanndd FFuuttuurree AAccccoouunnttiinngg PPrroonnoouunncceemmeennttss
The IASB and the International Financial Reporting Interpretations Committee have issued a number of new or
revised standards or interpretations that will become effective for future periods and have a potential implication
for the Corporation. There have been no pronouncements in addition to those disclosed in the December 31,
2021 annual audited consolidated financial statements.
DDiisscclloossuurree CCoonnttrroollss aanndd PPrroocceedduurreess
Pursuant to National Instrument 52-109, which requires certification of disclosure in an issuer’s annual and interim
filings, the Chief Executive Officer and the Chief Financial Officer have evaluated the effectiveness of the
Corporation’s internal disclosure controls and procedures for the three months and fiscal year ended December
31, 2021, including the design of internal controls over financial reporting, to provide reasonable assurance
regarding the reliability of financial reporting in accordance with IFRS. These officers have concluded that the
Corporation’s disclosure controls and procedures are designed effectively to ensure that information required to
be disclosed in reports that are filed or submitted under Canadian securities legislation are recorded, processed
and reported within the time specified in those rules.
There have been no changes in the Corporation’s internal controls over financial reporting that have materially
affected or are reasonably likely to affect the Corporation’s internal controls over financial reporting for the three
months and fiscal year ended December 31, 2021.
RRIISSKKSS AANNDD UUNNCCEERRTTAAIINNTTIIEESS
As our primary business consists of owning and operating storage real estate, we are exposed to risks related to
such ownership and operations that can adversely impact our business and financial position. The following is a
brief overview of some of the potential risks and the potential impacts these risks and uncertainties may have on
the operations of the Corporation:
RReeaall EEssttaattee IInndduussttrryy
Real estate investments are subject to varying degrees of risk depending on the nature of each property. Such
investments are affected by general economic conditions, local real estate markets, supply and demand for rental
space, competition from others with similar developments, the perceived “attractiveness” of a given property and
various other factors.
LLiiqquuiiddiittyy RRiisskk
Liquidity risk is the risk that the Corporation will be unable to meet its financial obligations as they fall due. The
Corporation manages liquidity risk through cash flow forecasting and regular monitoring of cash requirements
including anticipated investing and financing activities. Typically, the Corporation ensures that it has sufficient
cash or liquid investments available to meet expected operating expenses for a period of 30 days, excluding the
potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. For the
foreseeable future, the Corporation anticipates that cash flows from operations, working capital, and other sources
of financing will be sufficient to meet its operating requirements, debt repayment obligations and will provide
sufficient funding for anticipated capital expenditures.
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CANADA SELF STORAGE CENTRES
RReeffiinnaanncciinngg RRiisskk
There is no certainty that financing will be available upon the maturity of any existing mortgage at terms that are
as favorable as the expiring mortgage, or at all. If the Corporation is unable to refinance an existing indebtedness
on favorable terms, the Corporation may need to dispose of one or more properties on disadvantageous terms.
Prevailing interest rates, limited availability of credit or other factors at the time of refinancing could increase
interest expense and ultimately decrease the return to investors.
IInntteerreesstt RRaattee RRiisskk
Interest rate risk arises from changes in market interest rates that may affect the fair value of future cash flows from
the Corporation’s financial assets or liabilities. Interest rate risk may be partially mitigated by holding both fixed
and floating rate debt, or by staggering the maturities of fixed rate debt. The Corporation is exposed to interest
rate risk primarily relating to its long term debt. The Corporation will manage interest rate risk by utilizing fixed
interest rates on its mortgages where possible, entering into floating-to-fixed interest rate swaps, staggering
maturities over a number of years to mitigate exposure to any single year, and by attempting to ensure access to
diverse sources of funding.
EEccoonnoommiicc CCoonnddiittiioonnss
Even though storage is less susceptible to changes in the local economy, as storage space is often needed during
times of both growth and recession, downturns in a local economy could negatively affect our revenues and NOI.
A significant portion of storage customers use storage during periods of moving from one residence to another or
when a residence is being renovated. In times of economic downturn, the level of activity in housing sales and
housing renovation could decrease, thereby decreasing storage rental demand.
CCoonnttaaggiioouuss DDiisseeaasseess
The COVID-19 pandemic or any future outbreak of other highly infectious or contagious diseases, may impact
demand for our storage space and ancillary products and services, which can result in potential decreases in
occupancy, rental rates and administrative fees, and increases in expenses, which could adversely affect our results.
EEnnvviirroonnmmeennttaall RRiisskk
Environmental risk is inherent in the ownership of property. Various municipal, provincial and federal regulations
can result in penalties or potential liability for remediation, to the extent that hazardous materials enter the
environment. The presence of hazardous substances could also impair the Corporation’s ability to finance or sell
the property, and might expose the Corporation to civil lawsuits. To mitigate such risk, the Corporation procures
recent or updated environmental reports for all acquisitions to ascertain the risk, if any, that exist at a property. It
also prohibits the storage of hazardous substances as a condition of the user agreement signed by customers.
CCrreeddiitt RRiisskk
Credit risk arises from the possibility that customers may experience financial difficulty and be unable to fulfill their
financial obligations to the Corporation. The risk of incurring bad debts often arises if storage customers relocate
and cannot be found to enforce payment, or if storage customers abandon their possessions. The extent of bad
debts can be mitigated by quickly following up on any unpaid amounts shortly after the due date, enforcing late
fees, denying access to any customers with delinquent accounts, and ultimately seizing the possessions of the
customer. Additionally, the Corporation typically rents to numerous customers, each of which constitutes
significantly less than 5% of the Corporation’s monthly revenue. This diversification in the customer base reduces
credit risk from any given customer.
OOtthheerr SSeellff SSttoorraaggee OOppeerraattoorrss oorr SSttoorraaggee AAlltteerrnnaattiivveess
The Corporation competes with other individuals, corporations and institutions which currently own, or are
anticipating owning a similar property in a given region. Competitive forces could have a negative effect on
occupancy levels, rental rates or operating costs such as marketing.
AAccqquuiissiittiioonn ooff FFuuttuurree LLooccaattiioonnss
Competition also exists when the Corporation attempts to grow through acquisitions of storage locations. An
increase in the availability of investment funds in the general market, and a subsequent increase in demand for
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Annual Report 2021 | 81
CANADA SELF STORAGE CENTRES
storage locations would have a tendency to increase the price for future acquisitions of storage locations and
reduce the yields thereon.
AAnnttiicciippaatteedd RReessuullttss ffrroomm NNeeww AAccqquuiissiittiioonnss
The realization of anticipated results and value from acquisitions can be jeopardized from unexpected
circumstances in integrating stores into our existing operations, from situations we did not detect during our due
diligence, or from increased property tax following reassessment of newly acquired locations.
IInnccrreeaassee iinn OOppeerraattiinngg CCoossttss
Our operating margins can be negatively impacted from increases in operating costs such as property tax, staffing
costs, insurance premiums, repairs and maintenances costs, utility costs and others due to various factors such as
the need for governments to raise funds, natural disasters, and energy prices.
CClliimmaattee aanndd NNaattuurraall DDiissaasstteerrss
The storage industry in Canada can be cyclical. Due to the climate, demand for storage is generally weaker in
winter months with an increase in operating costs resulting in potentially lower NOI during Q1 and Q4.
Natural disasters, such as floods, earthquakes or severe winter storms may result in damage and business
interruption losses that are greater than the aggregate limits of our insurance coverage. We maintain a
comprehensive insurance policy to cover such events, however some insurance coverage may be or become
unavailable or cost prohibitive.
LLiittiiggaattiioonn
Legal claims may arise from the ordinary course of our business. Resolution of these claims would divert resources
from the Corporation such as cash to pay expenses and damages and the diversion of management’s time and
attention from the Corporation’s business. The impact and results from litigation cannot be predicted with
certainty and can have a material adverse effect on the business.
UUssee aanndd DDeeppeennddeennccyy oonn IInnffoorrmmaattiioonn TTeecchhnnoollooggyy SSyysstteemmss
Our business is heavily dependent on the use of information technology, with the majority of our new customers
communicating and transacting with us electronically or over the phone. Commerce over the internet and the
nature of our business requires us to retain private information about our customers. Significant aspects of these
systems are centrally managed, such as our financial information and some are managed by third party vendors.
These systems may be subject to telecommunication failures, cyber-attacks, computer worms and viruses and
other disruptive security breaches, all of which could materially impact our operations, resulting in additional costs
and or in legal action either by government agencies or private individuals.
82 | Annual Report 2021
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CANADA SELF STORAGE CENTRES
SSttoorraaggeeVVaauulltt CCaannaaddaa IInncc..
OOFFFFIICCEERRSS
Steven Scott
Chief Executive Officer
Iqbal Khan
Chief Financial Officer
DDIIRREECCTTOORRSS
Jay Lynne Fleming
Vancouver, BC
Ben Harris
Bedford, NY
Iqbal Khan
Toronto, ON
Steven Scott
Toronto, ON
Alan Simpson
Regina, SK
LLEEGGAALL CCOOUUNNSSEELL
AAUUDDIITTOORRSS
DLA Piper (Canada) LLP
Livingston Place
1000 – 250 2nd St S.W.
Calgary, AB T2P 0C1
Telephone 403-296-4470
Facsimile 403-296-4474
MNP LLP
1500, 640 – 5th Avenue
Calgary, AB T2P 3G4
Telephone 403-263-3385
Facsimile 403-269-8450
HHEEAADD OOFFFFIICCEE
RREEGGIISSTTRRAARR && TTRRAANNSSFFEERR AAGGEENNTT
StorageVault Canada Inc.
100 Canadian Rd
Toronto, ON M1R 4Z5
Telephone 1-877-622-0205
Email: ir@storagevaultcanada.com
TSX Trust
300-5th Avenue S.W., 10th Floor
Calgary, AB T2P 3C4
Telephone 403-218-2800
Facsimile 403-265-0232
TTSSXX LLIISSTTIINNGG:: SVI
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Annual Report 2021 | 83
CANADA SELF STORAGE CENTRES
ANNUAL
REPORT
2021
Corporate Information
Phone:
1-877-622-0205
Web site:
storagevaultcanada.com
Email:
ir@storagevaultcanada.com
Address:
100 Canadian Road, Toronto, Ontario, M1R 4Z5
CANADA SELF STORAGE CENTRES