CANADA SELF STORAGE CENTRES
2 0 2 4
CANADA SELF STORAGE CENTRES
Annual Report
2024 2
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 251 storage locations across Canada. StorageVault owns 221 of
these locations plus over 5,000 portable storage units representing over 12.6
million square feet of rentable space on over 725 acres of land. 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, offers concierge moving services through MoveBuddy 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
Website:
www.StorageVaultCanada.com
Email:
ir@StorageVaultCanada.com
Phone:
1-877-622-0205
Address:
100 Canadian Road, Toronto, ON, M1R 4Z5
CANADA SELF STORAGE CENTRES
Annual Report
2024 3
LETTER TO OUR SHAREHOLDERS
5
2024 HIGHLIGHTS
6
OUR NATIONAL FOOTPRINT
8
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
9
OUR BOARD MEMBERS
16
FINANCIAL STATEMENTS
17
MANAGEMENT DISCUSSION AND ANALYSIS
57
TABLE OF CONTENTS
CANADA SELF STORAGE CENTRES
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2024 4
WE CONTINUE TO GROW
OUR BUSINESS AS EVIDENCED
BY CONSECUTIVE QUARTERS
OF POSITIVE REVENUE,
NOI AND AFFO GROWTH
AND CONSECUTIVE
QUARTERS OF DIVIDEND
INCREASES
CANADA SELF STORAGE CENTRES
Annual Report
2024 5
Dear Fellow Shareholders,
We continue to grow our business as evidenced by 39 consecutive
quarters of positive revenue, NOI and AFFO growth, 35 consecutive
quarters of dividend increases, acquisition of $215 million of
complementary assets and the addition of 110,000 sqft of expanded
and renovated space to our platform. Unfortunately, our sustained
growth has not been reflected in our share price as we continue to see
the trend of capital flowing out of Canada into the US.
We continue to support over 300 charities, community and national
organizations throughout Canada and are proud to be recognized for
the 4th time as one of Canada’s most gender diverse companies. Our
balance sheet is very strong with 95% fixed interest rate debt and a
weighted average interest rate decreasing from 4.80% to 4.78%.
We were active on our NCIB in 2024 – buying back 8,620,137 shares and
will continue to be active if our shares remain undervalued.
Operations
Housing transactions continue to recover, as interest rates drop,
offsetting the slowdown in immigration and challenging economic
environment resulting in revenues increasing by 5.5%, NOI by 4.1%
and AFFO by 4.4%. While it is difficult to predict what the effect the
Trump Tariffs and a pending federal election will have on the Canadian
economy, we feel we are well positioned to continue growing these
three metrics well into the future.
Platform Scale and Strength
2024 was strong for acquisitions and expansions adding $215 million of
assets and completing 110,000 sqft of expanded and renovated space
– resulting in an increase of 825,000 rentable sqft to our platform. Our
well established acquisition pipeline continues to produce accretive
acquisition opportunities as such we expect to complete over $100
million of acquisitions in 2025. We also expect to add 150,000 sqft
of expansion and renovated space in 2025 while continuing to have
over 500,000 sqft of expansion projects in our active development,
permitting and entitlement pipeline.
We expect that the $127 million of lease up stores acquired in 2024,
combined with the 110,000 sqft of expansion space will add an
incremental $7.5 million of NOI and AFFO annually upon stabilization.
Together with our RecordXpress, FlexSpace Logistics and MoveBuddy
businesses, we are Canada’s largest full-service short and long term
storage solution provider. We are capable of storing, moving and
providing logistics for items of all sizes, whether they be stored in a
box or a 10x10 unit, to supporting the warehouse needs of small and
large businesses. Regardless of space requirements, we are Canada’s
storage provider from coast to coast.
ESG
StorageVault prides itself on having best in country ESG practices
prioritizing long term sustainable environmental and social
responsibilities consistent with our governance policies.
2024 accomplishments include:
• Women Lead Here, Globe and Mail’s Report on Business award for
the 4th time
• Prioritizing merit based growth and advancement throughout our
organization with a focus on tolerance, safety and personal health
and well-being
• Dividend Aristocrat recognition for the 2nd consecutive year
• We have the largest number of solar, motion sensor, LED lighting, in-
floor radiant heating and geothermal heating and cooling systems in
the Canadian self storage industry
• Continued sponsorship and support of over 300 charities and
community programs across Canada
• Saving over 444,000 trees in 2024 through RecordXpress, our
information and records management, paper shredding and
recycling platform
We will maintain our focus on growing free cash flow, acquiring high
quality assets and continuing our streak of revenue, NOI and AFFO
growth.
Thank you for your continued confidence and support.
Steven Scott
Chief Executive Officer
February 20, 2025
LETTER TO OUR
SHAREHOLDERS
CANADA SELF STORAGE CENTRES
Annual Report
2024 6
5.5%
REVENUE
4.1%
NOI
4.4%
AFFO
PER SHARE
NOI
AFFO (million dollars)
Number of Stores (Owned by SVI)
2024 HIGHLIGHTS
220
200
180
160
140
120
100
80
60
40
20
275
250
225
200
175
150
125
100
75
50
25
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Annual Report 2024 7
CANADA SELF STORAGE CENTRES
NOI
SHAREHOLDER
RETURN
$215.0 million
in acquisitions
completed in 2024
793%
10 year total shareholder return
NOI growth of 4.1% to
$201.6 million from
$193.6 million
REVENUE
OUTLOOK
SQUARE FOOTAGE
Revenue growth of 5.5% to
$304.7 million from $288.7
million
We grew to 12.6 million
sqft of rentable space in
109,480 storage units
Expecting
over $100 million in
acquisitions in 2025
ACQUISITIONS
CANADA SELF STORAGE CENTRES
Annual Report
2024 7
20
44
12
12
126
28
7
250+ locations owned and managed
across Canada and growing!
OUR NATIONAL
FOOTPRINT
CANADA SELF STORAGE CENTRES
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2024 8
CANADA SELF STORAGE CENTRES
Annual Report
2024 9
ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
CANADA SELF STORAGE CENTRES
Annual Report
2024 10
StorageVault prides itself on having best-in-country ESG practices prioritizing long-
term sustainable environmental and social responsibilities consistent with our
governance policies.
Environmental integrity, social responsibility, and a commitment to strong corporate
governance are core values at StorageVault. We remain focused on further reducing
the already minimal environmental impact of our stores, enhancing our engagement
with colleagues and shareholders, supporting the over 100 communities in which we
operate, and upholding sound corporate governance practices.
CANADA SELF STORAGE CENTRES
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2024 11
We believe that sustainability and success go hand in hand, and
to thrive as a business, we must make a positive contribution
to our communities. As a community focused company, we
recognize our responsibility to adopt sustainable operating
practices that minimize our environmental impact while
enhancing the performance of our portfolio. Our goal is to
create a positive impact on the environment, our communities,
shareholders and the broader self storage industry.
As part of our commitment to energy conservation, we
strategically offer a range of square footage options, including
both non-climate controlled and temperature controlled
spaces. For properties with temperature controlled storage, we
regulate temperatures to protect the integrity of stored items
while minimizing energy consumption for heating and cooling.
Non-climate controlled areas have minimal environmental
impact. This approach not only reduces our energy usage but
also lowers expenses, benefiting all stakeholders.
We actively seek forward thinking energy saving initiatives,
including the use of geothermal heating systems, rooftop
solar panels, solar walls, motion activated lighting systems,
and retrofitting older fixtures with modern, energy efficient
alternatives. Our solar program helps reduce our carbon
footprint by generating renewable energy, while also delivering
financial returns. Water usage at our properties is kept to a
minimum. Additionally, we source and sell packing supplies
made from recycled materials, and our digital rental process
has significantly reduced paper consumption.
The self storage industry has one of the lowest environmental
impacts in terms of energy consumption, water usage, and
waste production compared to other real estate asset classes.
This is primarily due to the inherently low environmental
footprint of storage properties, as they experience minimal
daily activity. With limited client traffic and activity, the
storage industry plays a key role in reducing carbon emissions
and minimizing its overall environmental impact within our
communities.
OTHER REAL ESTATE ASSET CLASSES
Source: Urban Land Institute, Greenprint Performance Report, Volume 12.
Other property types include Industrial, Multifamily, Office and Retail.
ENVIRONMENTAL
Energy
Consumption
(KWh/SqFt)
81% less
Water
Consumption
(L/SqFt)
89% less
Carbon
Emissions
(MT CO2E/SqFt)
79% less
STORAGE
CANADA SELF STORAGE CENTRES
Annual Report
2024 12
Waste Reduction and Recycling
RecordXpress, our information and records
management, paper shredding and recycling
division, recycled over 10.2 million pounds of
paper, saving 444,000 trees, diverting 99,000
cubic meters from landfills, and eliminating
the need for 198,000 barrels of oil that would
otherwise be required to harvest raw materials.
Sale of moving and packaging supplies made
from recycled materials.
Garbage and waste recycling programs at our
stores and corporate offices.
Paperless and digital rental process that reduces
paper usage through more efficient technology
options.
Electronic recycling and e-waste reduction
program for decommissioned computer
equipment, which either donates refurbished
equipment to local charities or recycles
equipment that cannot be repurposed.
Energy Reduction and Generation
Solar power generation through rooftop panels
and solar walls.
Geothermal heating and cooling systems, which
uses the earth as a source for heating and
cooling. Geothermal heat pumps are among the
most energy efficient technologies for HVAC
and water heating, using significantly less energy
than traditional systems.
Automated and self adjusting internal thermostat
temperature controls.
Energy efficient HVAC systems.
All new or replaced roofs are reflective “cool”
roofs, designed to minimize energy consumption.
Over 90% of all properties feature motion sensor
lighting, enabling on demand usage.
Over 80% of properties have been retrofitted
with interior LED lighting, and over 60% with
exterior LED lighting.
Use of in floor radiant heating.
Green Building Design and
Construction Practices
Energy efficient windows used in all new
construction and expansion projects.
SolarWall systems or insulated metal panels are
used in the construction of new and retrofitted
buildings.
Standard exterior storage doors are being
replaced with energy efficient doors.
Insulated foundation walls are installed to help
maintain and keep the foundation slab warm.
All proposed acquisitions undergo environmental
site assessments prior to closing.
Water Reduction and Conservation
One washroom per property, on average, due
to low occupant levels and client activity at our
locations.
Low flow and energy efficient plumbing systems
and appliances.
Low water irrigation systems.
Landscaping featuring native and drought
tolerant plant species.
Water run off controls to manage and minimize
waste.
Stormwater retention systems to improve water
management and reduce environmental impact.
CANADA SELF STORAGE CENTRES
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CANADA SELF STORAGE CENTRES
Annual Report
2024 13
As a Canadian company, our passion and commitment
to supporting our colleagues, clients, communities, and
country has never been stronger. We are truly grateful for the
opportunity to serve and support our fellow Canadians from
coast to coast.
Supporting our Communities
StorageVault is committed to fostering healthy and strong
communities through our pillars of support, including
healthcare, food security, the arts, education, and sports.
From grassroots initiatives to gold medals, and from food
banks to shelters, we are passionate about our commitment
to service and community. Our over 300 partnership initiatives
span local, regional, and national organizations, strategically
supporting our communities and creating meaningful, lasting
impact.
Our team of over 900 colleagues are grateful for the
opportunity to service and support our clients in more than
100 communities across Canada, as well as for the strong
partnerships we have built along the way.
Employee Engagement and Well-being
StorageVault is committed to cultivating a culture that
prioritizes well-being, promotes healthy practices, and
supports work life balance. At the heart of our philosophy is a
strong belief in developing and retaining talented individuals.
We emphasize active engagement from management
at all levels, fostering meaningful connections between
colleagues, clients, the board, and other stakeholders. Our
conviction is rooted in the belief that by prioritizing the well-
being of our team, we support and empower each other to
extend that care to our clients, stores, and communities.
2024 Employee Engagement and Well-being Highlights:
• Bonus opportunities – based on individual, store and
corporate performance success.
• Change Committee – self storage team members have
established a volunteer committee to offer feedback on
presented topics or propose ideas that would benefit
the organization. Some successful ideas that have been
implemented include those related to health and safety,
communications and training.
• Corporate events – we offer a variety of events including
team building activities, Family Bowling, Pot-Luck Lunches
and Christmas gatherings.
• Health and insurance benefits – we provide competitive
health and insurance benefits, employee assistance
programs, paid time off, and leave of absence and
bereavement support.
• Incentive programs – we provide a variety of programs and
contests, such as our Step Challenge, which encourages our
employees to meet step goals and promotes a healthier
lifestyle.
• Internal promotions – strong commitment to fostering
merit based growth and advancement from within.
Many of our senior team members have been with our
company for many years and have continuously grown and
developed throughout their tenure.
• Wellness Wednesdays – a monthly webinar for all our
colleagues with topics including finance, wellness,
meditation, exercise, mental health and hobbies.
• Training and Career Development – dedicated Corporate
Training team has created an industry leading program for
our New Hires. In addition to New Hire training, our team
also hosts Monthly All-Store webinars and offer specialized
sessions for Store Managers (teaching leadership, customer
service and wellness skills) as part of our Elite Academy
Sessions to support career development.
SOCIAL
CANADA SELF STORAGE CENTRES
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2024 14
CANADA SELF STORAGE CENTRES
Annual Report
2024 15
StorageVault’s Board and Management recognize the
importance of equality and diversity and are committed
to upholding the highest standards of governance. This
commitment is demonstrated through the following:
• Diverse Board and Management team
- 66% of our Directors are independent
- 50% Board diversity (gender and race)
- 33% of our Directors are female
- 52% of our senior management are female
• Annual Board review and approval of executive
compensation
- Performance targets are set, approved and reviewed
by Board to determine payouts
• Annual election of Directors by shareholders at AGM
• Independent
Director
led
Audit,
Acquisition
and
Governance, Nominating and Compensation Committees
• Acquisition Committee Mandate to review, approve and
recommend transactions to the Board
• Regular review, update and reapproval by our Board of all
Corporate Governance mandates, principles and policies:
- Charter of the Audit Committee
- Charter of the Board of Directors
- Charter of the Governance, Nominating and Compensation
Committee
- Code of Business Conduct (mandatory for all employees)
- Disclosure and Confidentiality Policy
- Diversity Policy
- Insider Trading and Reporting Policy
- Majority Voting Policy
- Whistleblower Policy
We take pride in the diverse composition of our team, which
has naturally evolved within our organization. Additionally,
we are committed to fostering merit based growth and
advancement from within. Many of our senior team members
have progressed through the ranks, not only spending many
years with our company but also continuously growing and
developing throughout their tenure.
For the 4th time, StorageVault has been recognized by The
Globe and Mail’s 2024 Report on Business, Women Lead
Here. This annual editorial benchmark identifies best-in-class
gender diversity in corporate Canada. This award recognizes
and is representative of StorageVault’s equity and inclusion
that is organic within our organization.
StorageVault is dedicated to supporting and ensuring stability
to protect the long term interests of all its stakeholders
through disciplined corporate governance practices. In
line with our commitment to transparency and strong
governance, we make all corporate policies, mandates, and
charters publicly available on our website.
2024 WINNER
GOVERNANCE
CANADA SELF STORAGE CENTRES
Annual Report
2024 16
OUR BOARD MEMBERS
Mr. Harris has more than 20 years of real estate investment and management experience. Mr. Harris
is the founder and CEO of Pinedale Capital Partners, a privately held investment management firm
focused on the acquisition, development and operation of industrial properties across the United States.
Mr. Harris is a graduate of Dalhousie University and the University of Kings College in Canada where he
received joint Science degrees in Economics. He also serves on the board of Rippowam Cisqua School
in Bedford, NY and is on the boards of Sonida Senior Living (NYSE:SNDA) and Outerspace Ops Inc.
Chief Financial Officer of the Corporation. Mr. Khan is a Principal and Chief Financial Officer of The Access
Group of Companies focusing on the ownership, acquisition and development of storage, multi-residential
and commercial real estate in Canada, and prior to the internalization into the Corporation, President of
RecordXpress, a records management company. Mr. Khan is the Chief Executive Officer and a director
of Parkit Enterprise Inc. (TSX-V: PKT). He is the Chairperson of the Canadian Self Storage Association Tax
Committee.
Ms. Robinson has over 30 years of human resources and governance experience. She founded Bay Street
HR in 2001 after spending 6 years as Executive Director, HR for CIBC World Markets. Her previous HR
experience includes Fidelity Investments and American Express in Boston and New York. Her prior board
experience includes VIA Rail Canada, and Park Lawn Corporation (Board Chair). She is a current board
member of Timbercreek Financial and GlobalX Airlines and holds the ICD designation from The Rotman
School of Management.
Steven Scott is the Chair and Chief Executive Officer of the Corporation. Mr. Scott is also a director and Chair
of Parkit Enterprise Inc. (TSX-V: PKT). Mr. Scott is a Principal and Chief Executive Officer of The Access Group
of Companies focusing on the ownership, acquisition and development of storage, multi-residential and
commercial real estate in Canada. Mr. Scott is also a Director and Treasurer of the Canadian Self Storage
Association.
In 2007, Mr. Simpson co-founded the Corporation and was President and Chief Executive Officer until April
2015. He serves as a director and Acquisition Committee Chair. In 2000, Mr. Simpson co-founded Hospitality
Network Canada now operating as HealthHub Patient Engagement Solutions Inc. and was President and
Chief Executive Officer. Recently, Mr. Simpson co-founded PharmaCorp Rx Inc. (PCRX.V), a company engaged
in the acquisition and operation of retail pharmacies and healthcare services in Canada. Mr. Simpson is a
recipient of the Queen Elizabeth II Platinum Medal and the King Charles III Coronation Medal.
Ms. Vitug has over 30 years of capital markets experience, including 24 years at Scotiabank as a Managing
Director in Investment Banking and Equity Capital Markets. Ms. Vitug has led numerous initial public
offerings, mergers and acquisitions, and equity financings with a strategic focus on real estate, consumer
and retail, industrial, and financial institutions. In addition to her role on the Board of StorageVault, Vitug is
a currently a member of the Board of Trustees for Slate Grocery REIT and Nexus Industrial REIT. She also
served on the Board of Women in Capital Markets (now VersaFi), for over a decade, most recently holding
the position of Chair.
BEN
HARRIS
Director
IQBAL
KHAN
CFO & Director
DEBORAH
ROBINSON
Director
STEVEN
SCOTT
CEO & Director
AL
SIMPSON
Director
MARY
VITUG
Director
CANADA SELF STORAGE CENTRES
Annual Report
2024 17
FINANCIAL
STATEMENTS
CANADA SELF STORAGE CENTRES
Annual Report
2024 18
StorageVault Canada Inc.
Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
CANADA SELF STORAGE CENTRES
Annual Report
2024 19
MNP LLP
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, 2024 and December 31, 2023, and the
consolidated statements of income (loss) and comprehensive income (loss), changes in equity and cash flows for the
years then ended, and notes to the consolidated financial statements, including material accounting policy
information.
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, 2024 and December 31, 2023, and its
consolidated financial performance and its consolidated cash flows for the years then ended in accordance with
IFRS® Accounting Standards as issued by the International Accounting Standards Board.
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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Evaluation of the acquisition date fair value for real estate and equipment and intangible assets related to the
current year business acquisitions
Key Audit Matter Description
We draw attention to note 4 to the consolidated financial statements. Over the course of the fiscal 2024, the
Corporation acquired 7 self-storage facilities, 2 commercial properties, and a records management business. The
Corporation recorded real estate and equipment (“RE&E”) of $200 million and intangible assets ("IA") of $12 million.
These acquisitions have been accounted for using the acquisition method. These acquisitions consisted of both arm's
length and non-arm's length transactions.
We identified the evaluation of the acquisition date fair value for RE&E and IA related to the business acquisitions as a
key audit matter. Significant auditor judgment was required to evaluate the results of our audit procedures regarding
the approach and significant assumptions with respect to the estimated acquisition date fair value of RE&E and IA. In
addition, specialized skills and knowledge were required in evaluating the results of our audit procedures.
CANADA SELF STORAGE CENTRES
Annual Report
2024 20
Audit Response
We responded to this matter by performing procedures in relation to the evaluation of the acquisition date fair value
of RE&E and IA. Our audit work in relation to this included, but was not restricted to, the following:
We involved internal and external valuation professionals with specialized skills and knowledge, who assisted in
assessing:
the appropriateness of the valuation methodologies utilized;
the reasonableness of certain valuation assumptions applied;
the mathematical accuracy of the valuation calculations utilized in fair value analysis; and
the reasonableness of the discount rates applied in determining the fair value of the assets.
Assessment of the recoverable amount of goodwill and indefinite life intangible assets allocated to various cash
generating units
Key Audit Matter Description
We draw attention to note 5 and 6 to the consolidated financial statements. Goodwill and intangible assets with
indefinite useful lives are tested for impairment at least annually or more frequently if there is an indication that a
cash generating unit (“CGU”) or group of CGUs to which the goodwill and intangible assets with indefinite useful lives
relate, may be impaired. When the carrying amount of a CGU or group of CGUs, to which the goodwill and intangible
assets with indefinite useful lives exceeds its recoverable amount the goodwill and intangible assets with indefinite
useful lives with respect thereto are considered impaired and its carrying amount is reduced to its recoverable
amount.
The Corporation completed the annual impairment tests on the group of CGUs. Total goodwill at December 31, 2024
pertaining to the group of CGUs was $111 million and the total value of intangible assets with indefinite useful lives
was $16.3 million.
For the year ended December 31, 2024, the Corporation has not recognized any impairment relating to goodwill and
intangible assets with indefinite useful lives.
We identified the assessment of the recoverable amount of goodwill and indefinite life intangible assets as a key
audit matter due to the degree of judgment and subjectivity in evaluating management's estimates and assumptions
in determining the recoverable amount of the group of CGUs. Significant assumptions included:
Forecasted income before finance costs, taxes, depreciation and amortization, share based
compensation, and certain other income and expenses;
Growth rates; and,
Discount rates.
CANADA SELF STORAGE CENTRES
Annual Report
2024 21
Audit Response
We responded to this matter by performing procedures in relation to assessment of the recoverable amount of
goodwill and indefinite life intangible assets allocation to various CGU’s. Our audit work in relation to this included,
but was not restricted to, the following:
We compared the Corporation’s 2024 actual income and expenses to the amount budgeted for 2024 to assess the
Corporation’s ability to accurately forecast.
We evaluated the appropriateness of the forecasted income and expenses used in the estimate of the recoverable
amount for the group of CGUs by:
Comparing the forecasted income and expenses for the group of CGUs to historical results.
We involved internal valuation professionals with specialized skills and knowledge, who assisted in:
Evaluating the appropriateness of the Corporation’s discount rates by comparing the discount rates to
market and other external data; and,
Assessing the reasonableness of the Corporation’s estimates of the recoverable amounts for the group of
CGUs by comparing the Corporation’s estimates to market metrics and other external data.
Other Information
Management is responsible for the other information. The other information comprises:
Management’s Discussion and Analysis
The information, other than the 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 have performed 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.
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 IFRS Accounting Standards as issued by the International Accounting Standards Board, 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.
CANADA SELF STORAGE CENTRES
Annual Report
2024 22
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.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Corporation as a basis for forming an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and review of the audit
work performed for the purposes of the group audit. We remain solely responsible for our audit opinion.
CANADA SELF STORAGE CENTRES
Annual Report
2024 23
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.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
The engagement partner on the audit resulting in this independent auditor's report is Scott Laluk.
Calgary, Alberta
February 20, 2025
Chartered Professional Accountants
CANADA SELF STORAGE CENTRES
Annual Report
2024 24
StorageVault Canada Inc.
Consolidated Statements of Financial Position
As at December 31
2024
2023
Assets
Real estate and equipment, net (Note 5)
2,070,301,838
$
1,880,004,992
$
Goodwill and intangible assets, net (Note 6)
128,283,934
124,960,340
Cash and short term deposits
16,342,562
13,861,106
Accounts receivable
9,780,292
8,522,542
Prepaid expenses and other current assets
9,259,634
15,840,630
Unrealized fair value of derivative assets (Note 10)
-
1,028,346
2,233,968,260
$
2,044,217,956
$
Liabilities and Shareholders' Equity
Debt (Note 7)
1,672,513,158
$
1,412,708,149
$
Debentures (Note 8)
267,038,477
261,437,659
Lease liabilities (Note 15)
92,142,366
99,715,973
Deferred tax liability (Note 11)
30,508,763
39,566,673
Accounts payable and accrued liabilities
23,290,786
21,860,758
Unearned revenue
12,362,105
13,055,011
Unrealized fair value of derivative liabilities (Note 10)
5,301,905
-
2,103,157,560
1,848,344,223
Shareholders' Equity
Share capital (Note 9)
372,711,658
404,045,009
Dividends paid (Note 9)
(33,364,996)
(29,035,979)
Equity component of convertible debentures (Note 8)
13,506,670
13,506,670
Contributed surplus (Note 9)
41,390,480
40,568,013
Deficit
(263,433,112)
(233,209,980)
130,810,700
195,873,733
2,233,968,260
$
2,044,217,956
$
Subsequent Events (Note 16)
The accompanying notes are an integral part of these consolidated financial statements.
Approved on behalf of the Board:
"signed" Steven Scott
"signed" Iqbal Khan
"Director"
"Director"
CANADA SELF STORAGE CENTRES
Annual Report
2024 25
StorageVault Canada Inc.
Consolidated Statements of Changes in Equity
For the Years Ended December 31
2024
2023
Share Capital
Balance, beginning of the period
404,045,009
$
424,954,374
$
Common shares issued, net of issuance costs (Note 9)
5,810,124
5,691,790
Stock options, RSUs/DSUs redeemed (Note 9)
(108,510)
(5,038,500)
Share buyback tax (Note 9)
(725,903)
-
Common shares repurchased (Note 9)
(36,309,062)
(21,562,655)
Balance, end of the period
372,711,658
404,045,009
Dividends Paid
Balance, beginning of the period
(29,035,979)
(24,741,001)
Dividends paid during the period (Note 9)
(4,329,017)
(4,294,978)
Balance, end of the period
(33,364,996)
(29,035,979)
Equity Component of Convertible Debentures
Balance, beginning of the period
13,506,670
-
Equity component of convertible debentures, net of deferred tax (Note 8)
-
13,506,670
Balance, end of the period
13,506,670
13,506,670
Contributed Surplus
Balance, beginning of the period
40,568,013
38,451,552
Stock options, RSUs/DSUs redeemed (Note 9)
(1,862,177)
(1,679,165)
Stock based compensation (Note 9)
2,684,644
3,795,626
Balance, end of the period
41,390,480
40,568,013
Deficit
Balance, beginning of the period
(233,209,980)
(231,509,822)
Net loss and comprehensive loss
(30,223,132)
(1,700,158)
Balance, end of the period
(263,433,112)
$
(233,209,980)
$
The accompanying notes are an integral part of these consolidated financial statements.
CANADA SELF STORAGE CENTRES
Annual Report
2024 26
StorageVault Canada Inc.
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
For the Years Ended December 31
2024
2023
Revenue
Storage and related services
302,777,461
$
286,687,556
$
Management fees
1,927,744
2,037,056
304,705,205
288,724,612
Expenses
Operating costs
103,103,429
95,131,868
Depreciation and amortization (Notes 5,6)
102,682,412
100,518,182
Interest (Notes 7,15)
90,006,235
83,297,441
Selling, general and administrative
24,335,050
24,290,628
Acquisition and integration costs
7,698,561
5,904,217
Unrealized loss on derivative financial instruments (Note 7)
6,330,251
1,450,089
Interest accretion on convertible debentures (Note 8)
4,469,820
4,195,644
Stock based compensation (Note 9)
2,684,644
3,795,626
Realized loss (gain) on disposal of real estate and equipment (Note 5)
2,675,845
(15,528,115)
Realized gain on derivative financial instruments (Note 7)
-
(3,994,356)
343,986,247
299,061,224
Net loss and comprehensive loss before tax
(39,281,042)
(10,336,612)
Deferred tax recovery (Note 11)
9,057,910
8,636,454
Net loss and comprehensive loss after tax
(30,223,132)
$
(1,700,158)
$
Net loss per common share
Basic
(0.081)
$
(0.005)
$
Diluted
(0.081)
$
(0.004)
$
Weighted average number of common shares outstanding
Basic
372,816,185
376,930,150
Diluted
372,816,185
385,604,697
The accompanying notes are an integral part of these consolidated financial statements.
CANADA SELF STORAGE CENTRES
Annual Report
2024 27
StorageVault Canada Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31
2024
2023
Cash from (used for) the following activities:
Operating activities
Net loss and comprehensive loss after tax
(30,223,132)
$
(1,700,158)
$
Adjustment for non-cash items:
Deferred tax recovery (Note 11)
(9,057,910)
(8,636,454)
Depreciation and amortization (Notes 5,6)
102,682,412
100,518,182
Amortization of deferred financing costs
2,525,118
2,762,685
Interest accretion on lease liabilities (Note 15)
3,878,481
3,668,569
Interest accretion on convertible debentures (Note 8)
4,469,820
4,195,644
Unrealized loss (gain) on derivative financial instruments (Note 7)
6,330,251
(2,520,812)
Stock based compensation (Note 9)
2,684,644
3,795,626
Interest expensed on debentures (Note 8)
14,965,475
-
Realized loss (gain) on disposal of real estate and equipment (Note 5)
2,675,845
(16,242,182)
Cash flows from operations before non-cash working capital balances
100,931,004
85,841,100
Net change in non-cash working capital balances
Accounts receivable
(1,257,750)
(1,882,516)
Prepaid expenses and other current assets
6,580,996
(5,894,138)
Accounts payable and accrued liabilities
1,430,028
1,000,490
Unearned revenue
(692,906)
(1,070,066)
Cash flows from operating activities
106,991,372
77,994,870
Financing activities
Dividends paid (Note 9)
(2,484,219)
(2,841,590)
Payments of lease liabilities (Note 15)
(8,485,753)
(7,887,925)
Debt issuance costs
(2,919,645)
(1,849,751)
Cash advances from long term debt (Note 7)
606,589,054
286,760,989
Cash repayments of long term debt (Note 7)
(346,389,518)
(401,685,562)
Stock options, RSUs/DSUs redeemed
(1,950,204)
(6,717,665)
Interest paid on debentures (Note 8)
(14,965,475)
-
Common shares repurchased (Note 9)
(36,309,062)
(21,562,655)
Proceeds from debenture issuance, net of issuance costs (Note 8)
-
143,990,089
Proceeds from derivative financial instruments
-
3,970,902
Common shares issued, net of issuance costs (Note 9)
-
20,059
Cash flows from (used for) financing activities
193,085,178
(7,803,109)
Investing activities
Purchases of real estate and equipment (Note 5)
(87,012,975)
(66,875,057)
Cash paid in business combinations (Note 4)
(211,000,000)
(86,825,000)
Proceeds on disposal of real estate and equipment (Note 5)
417,881
74,834,576
Cash flows used for investing activities
(297,595,094)
(78,865,481)
Increase (decrease) in cash and short term deposits
2,481,456
(8,673,720)
Cash and short term deposits balance, beginning of the period
13,861,106
22,534,826
Cash and short term deposits balance, end of the period
16,342,562
$
13,861,106
$
The accompanying notes are an integral part of these consolidated financial statements.
CANADA SELF STORAGE CENTRES
Annual Report
2024 28
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
1. Description of Business
StorageVault Canada Inc. (the “Corporation”) is incorporated under the Business Corporations Act of Alberta and is
domiciled in Canada. Its shares are publicly traded on the Toronto Stock Exchange (“Exchange”). The address of its
registered office is 1000 – 250 2nd Street SW, Calgary, AB, T2P 0C1.
The Corporation’s primary business is owning, managing and renting self storage and portable storage space to individual
and commercial customers. The Corporation also stores, shreds, and manages documents and records for customers.
2. Basis of Presentation
These consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards as issued by
the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee. These
consolidated financial statements as at and for the year ended December 31, 2024, were authorized for issuance by the
Board of Directors of the Corporation on February 20, 2025.
The consolidated financial statements have been prepared under the historical cost method, except for the revaluation
of certain financial assets and financial liabilities to fair value. The consolidated financial statements were prepared on a
going concern basis, and are presented in Canadian dollars, which is the Corporation’s and its wholly owned subsidiary’s
functional currency.
3. Material Accounting Policies
Basis of Consolidation
The consolidated financial statements include the accounts of StorageVault Canada Inc. and its wholly owned subsidiary
507399 N.W.T. Ltd., both of which are headquartered in Toronto, Ontario. The financial statements for the consolidated
entity are prepared for the same reporting period as StorageVault Canada Inc. using consistent accounting policies. All
intercompany transactions and balances have been eliminated in the preparation of these consolidated financial
statements.
Revenue Recognition
Revenue from the rendering of services and sale of goods is recognized at the fair value of consideration received or
receivable after the deduction of any trade discounts and excluding sales taxes.
The Corporation’s revenue comprises the renting of storage units to customers, information and records management,
managing storage facilities on behalf of third parties, and sale of merchandise, including locks, boxes, packing supplies
and equipment.
Revenue earned from the renting of storage units is accounted for under IFRS 16 – Leases. Storage units are rented to
customers pursuant to rental agreements which provide for weekly or monthly rental terms with non-refundable rental
payments. The rental agreements may be terminated by the customer without further obligation or cost upon vacating
the storage unit. Revenue from rental agreements is recognized over the rental term pursuant to the rental agreement.
Non-refundable customer deposits, which are received to hold a unit for rent at a future date, are deferred and recognized
as revenue upon commencement of the rental agreement. Receipts of rental fees for future periods are deferred and
recognized as revenue when each respective monthly period commences.
The Corporation earns a management fee based on a percentage of gross revenues of the operations for managing
storage facilities for third parties. Revenue is recognized over time when the services are rendered.
Revenue for other storage related services is recognized in the month the respective services are provided. Receipts of
fees for other storage related services for future periods are deferred and recognized as revenue when each respective
monthly period commences. A provision is made for expected credit losses.
CANADA SELF STORAGE CENTRES
Annual Report
2024 29
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 3 – Continued
Revenue from the sale of merchandise, including locks, boxes, packing supplies and equipment, is recognized at the point
in time when the merchandise is delivered to the customer.
Business Combinations
All business combinations are accounted for by applying the acquisition method. Upon acquisition, the assets (including
intangible assets), liabilities and contingent liabilities acquired are measured at their fair value. The Corporation
recognizes intangible assets as part of business combinations at fair value at the date of acquisition. The determination
of these fair values is based upon management’s judgment and includes assumptions on the timing and amount of future
cash flows generated by the assets acquired and the selection of an appropriate discount rate. Acquisition and integration
costs are recognized in profit or loss as incurred.
Goodwill represents the excess of the identifiable cost of an acquisition over the fair value of the Corporation's share of
the net assets acquired at the date of acquisition. If the identifiable cost of acquisition is less than the fair value of the
Corporation's share of the net assets acquired (i.e. a discount on acquisition) the difference is credited to the Consolidated
Statements of Income (Loss) and Comprehensive Income (Loss) in the period of acquisition. At the acquisition date,
goodwill acquired is recognized as an asset and allocated to each cash-generating unit (“CGU”) expected to benefit from
the business combination’s synergies, and to the lowest level at which management monitors the goodwill.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Corporation reports provisional amounts for the items for which the accounting is incomplete.
Those provisional amounts are adjusted retrospectively during the measurement period, or additional assets or liabilities
are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date
that, if known, would have affected the amounts recognized as of that date. The measurement period is the period from
the date of acquisition to the date the Corporation obtains complete information about facts and circumstances that
existed as of the acquisition date, up to a maximum of one year.
Joint Operations
Joint operations are recognized and measured in accordance with IFRS 11 - Joint Arrangements. Under this standard, the
Corporation will recognize its interest in the joint operation using the proportionate consolidation method. This involves
recognizing the assets, liabilities, revenues, and expenses of the joint operation in proportion to the Corporation's share
of ownership in the operation.
Cash and Short Term Deposits
Cash and short term deposits on the Consolidated Statements of Financial Position are comprised of cash at bank and on
hand, and short term, highly liquid deposits with an original maturity of three months or less. For the purpose of the
Consolidated Statements of Cash Flows, cash and short term deposits are defined as above, net of outstanding bank
overdrafts, except where no right of set-off exists.
Real Estate and Equipment
Real estate and equipment are stated at historical cost less accumulated depreciation and any impairment in value.
Historical cost includes expenditures that are directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Corporation and the cost of the item
can be measured reliably. The carrying amount of a replaced part is derecognized. All other repairs and maintenance are
charged to the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) during the financial period
in which they are incurred.
Once an asset is available for use in the location and condition intended by management, it is depreciated to its residual
value using the appropriate depreciation rate set forth by management. Land is not depreciated.
CANADA SELF STORAGE CENTRES
Annual Report
2024 30
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 3 – Continued
Depreciation is calculated using the declining balance method to depreciate the cost of real estate and equipment to their
residual values over their estimated useful lives, as follows:
Land, Yards, Buildings & Improvements -
Buildings
4%
Leasehold improvements
20%
Business operating equipment
10%
Fences and parking lots
8%
Storage Containers -
Storage containers
10%
Vehicles -
Vehicles
30% to 40%
Truck decks and cranes
20%
Office and Computer Equipment -
Furniture and equipment
20%
Computer equipment
45%
The residual value and useful lives of real estate and equipment are reviewed, and adjusted if appropriate, at each
Consolidated Statements of Financial Position date. An asset’s carrying value is written down to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount. These impairment losses are recognized
in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Following the recognition of an
impairment loss, the depreciation charge applicable to the asset is adjusted prospectively in order to systematically
allocate the revised carrying amount, net of any residual value, over the remaining useful life.
Goodwill and Intangible Assets
Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets and liabilities
acquired at the date of acquisition. Goodwill is carried at cost less accumulated impairment losses.
Finite life intangible assets are carried at cost less accumulated amortization and accumulated impairment losses.
Amortization begins when an asset is available for use and is calculated on a straight-line basis to allocate the cost of
assets over their estimated useful lives as follows: Tenant Relationships – 22 to 180 months, Websites – 3 years,
Trademarks – 10 years.
Indefinite life intangible assets, consisting of management contracts, are carried at cost and are not amortized. The useful
lives of indefinite life intangible assets are reviewed at each Consolidated Statements of Financial Position date.
Goodwill and indefinite life intangibles are reviewed for impairment annually by assessing the recoverable amount of
each CGU to which it relates. The recoverable amount is the higher of fair value less costs of disposal, and value in use.
When the recoverable amount of the CGU is less than the carrying amount, an impairment loss is recognized. Any
impairment is recognized immediately in the Consolidated Statements of Income (Loss) and Comprehensive Income
(Loss). Any impairment recognized on goodwill is not subsequently reversed.
Income Taxes
Income tax is comprised of current tax and deferred tax. Income tax is recognized in the Consolidated Statements of
Income (Loss) and Comprehensive Income (Loss) except to the extent that it relates to items recognized directly in equity,
in which case it is recognized in equity.
Current tax is the tax expected to be payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
CANADA SELF STORAGE CENTRES
Annual Report
2024 31
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 3 – Continued
Deferred tax is recognized using the liability method, providing for temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition,
deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred
tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes
levied by the same tax authority on the same taxable entity, or on different taxable entities, but they intend to settle
current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against
which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related tax benefit will be realized.
Stock Based Compensation
The fair value of stock options issued to directors, officers and consultants under the Corporation’s stock option plan is
estimated at the date of issue using the Black-Scholes option pricing model and charged to the Consolidated Statements
of Income (Loss) and Comprehensive Income (Loss) and contributed surplus. Each tranche in an award is considered a
separate award with its own vesting period and grant date fair value. On the exercise of options, the cash consideration
received and the fair value of the option previously credited to contributed surplus are credited to share capital.
The fair value of options issued to advisors in conjunction with financing transactions is estimated at the date of issue
using the fair value of the goods and services received first, if determinable, then by the Black-Scholes option pricing
model, and charged to share capital and contributed surplus over the vesting period. On the exercise of agent options,
the cash consideration received and the fair value of the option previously credited to contributed surplus are credited
to share capital.
When stock options are cancelled, it is treated as if the stock options had vested on the date of cancellation and any
expense not yet recognized for the award is recognized immediately. However, if a new option is substituted for the
cancelled option and is designated as a replacement option on the date that it is granted, the cancelled and the new
options are treated as if they were a modification of the original option.
Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes
in these assumptions can materially affect the fair value estimate, therefore, the existing models do not necessarily
provide a reliable single measure of the fair value of the Corporation’s share purchase options. Forfeitures are estimated
for each reporting period and adjusted as required to reflect actual forfeitures that have occurred in the period.
Income (Loss) per Share
Basic income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of
common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income
by the weighted average number of shares outstanding as adjusted for the potential dilution that would occur if
outstanding stock options, subordinated debentures, preferred shares or other potentially dilutive financial instruments
were exercised or converted to common shares. The weighted average number of diluted shares is calculated in
accordance with the treasury stock method. The treasury stock method assumes that the proceeds received from the
exercise of all potentially dilutive instruments are used to repurchase common shares at the average market price.
Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of shares are shown in
equity as a deduction from the proceeds received.
CANADA SELF STORAGE CENTRES
Annual Report
2024 32
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 3 – Continued
Segment Reporting
An operating segment is a component of the Corporation that engages in business activities from which it may earn
revenues and incur expenses. All operating segments’ operating results are reviewed regularly by the Corporation’s CEO
and or CFO in order to make decisions regarding the allocation of resources to the segment. Segment results include items
directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Financial Instruments
a) Financial assets - Pursuant to IFRS 9, the classification of financial assets is based on the Corporation’s assessment of
its business model for holding financial assets. The classification categories are as follows:
-
Financial assets measured at amortized cost: assets that are held within a business model whose
objective is to hold assets to collect contractual cash flows and its contractual terms give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. The Corporation classifies the following financial assets as measured at amortized cost:
cash and short term deposits, and accounts receivable.
-
Financial assets at fair value through other comprehensive income: assets that are held within a
business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets, and its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. The Corporation has no
financial assets classified in this category.
-
Financial assets at fair value through profit or loss: assets that do not meet the criteria for amortized
cost or fair value through other comprehensive income. The Corporation classifies its total return swaps
as financial assets at fair value through profit or loss.
Financial assets measured at amortized cost are measured at cost using the effective interest method. When
assessing impairment of financial assets measured at amortized cost, the Corporation applied the simplified
approach and has calculated expected credit losses based on lifetime expected credit losses. Under the simplified
method the Corporation uses a provision matrix to calculate expected credit losses for accounts receivable which is
based on the Corporation’s historical credit loss experience, adjusted for forward-looking factors specific to the
debtors and the economic environment. Loss allowances for financial assets measured at amortized cost are
deducted from the gross carrying amounts of the assets and the loss is recognized in the Consolidated Statements
of Income (Loss) and Comprehensive Income (Loss). When a trade receivable is uncollectible, it is written off against
the allowance for expected credit losses.
Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or
when the contractual rights to those assets are transferred.
b) Financial liabilities - The classification of financial liabilities is determined by the Corporation at initial recognition.
The classification categories are as follows:
-
Financial liabilities measured at amortized cost: financial liabilities initially measured at fair value less
directly attributable transaction costs are subsequently measured at amortized cost using the effective
interest method. Interest expense is recognized in the Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss). The Corporation classifies the following financial liabilities as measured
at amortized cost: certain debt facilities, and accounts payable and accrued liabilities.
-
Financial liabilities measured at fair value through profit or loss: financial liabilities measured at fair
value with changes in fair value and interest expense recognized in the Consolidated Statements of
Income (Loss) and Comprehensive Income (Loss). The Corporation classifies the following financial
liabilities as measured at fair value: certain debt facilities and interest rate swaps.
CANADA SELF STORAGE CENTRES
Annual Report
2024 33
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 3 – Continued
Financial liabilities are derecognized when the obligation is discharged, cancelled or expired.
Debentures
When a contract contains an embedded derivative, the economic and risk characteristics of both the embedded derivative
and host contract are analyzed to understand whether or not they are closely related and to decide whether the
embedded derivative should be accounted for separately from the host contract.
The embedded features in the financial instrument issued by the Corporation are identified at inception. Each feature is
evaluated separately and classified either as part of the host liability, as a separate embedded liability or as an equity
instrument in accordance with the substance of the contractual arrangement.
Significant Accounting Estimates and Judgments
The preparation of the consolidated financial statements requires management to make judgments, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income, and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
Estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year include, but are not necessarily limited to:
-
Real estate and equipment - The Corporation determines the carrying value of its real estate and equipment
based on policies that incorporate estimates, assumptions, and judgments relative to the useful lives and
residual values of the assets.
-
Impairment of non-financial assets - Impairment exists when the carrying value of an asset or CGU exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value
less costs of disposal calculation is based on available data from binding sales transactions in an arm’s length
transaction of similar assets or observable market prices less incremental costs for the disposal of the asset. The
value in use calculation is based on a discounted cash flow model. The estimated future cash flows are derived
from management estimates, budgets, and past performance, and do not include activities to which the
Corporation is not yet committed or significant future investments that will enhance the asset’s performance in
the CGU being tested. The recoverable amount is sensitive to the discount rate used for the discounted cash
flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes.
-
Purchase price allocations - Estimates are made in determining the fair value of assets and liabilities, including
the valuation of separately identifiable intangibles acquired as part of a business combination. These estimates
may be further based on management’s best assessment of the related inputs used in valuation models, such
as future cash flows and discount rates.
-
Income taxes - Income taxes are subject to measurement uncertainty due to the possibility of changes in tax
legislation or changes in the characterization of income sources.
-
Stock based compensation - Compensation costs accrued for stock based compensation plans are subject to the
estimation of the ultimate payout using pricing models such as the Black-Scholes model which is based on
significant assumptions such as volatility, dividend yield and expected term.
CANADA SELF STORAGE CENTRES
Annual Report
2024 34
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 3 – Continued
Management judgments that may affect reported amounts of assets and liabilities, income and expenses include but are
not necessarily limited to:
-
For the purpose of assessing impairment of tangible and intangible assets, assets are grouped at the lowest level
of separately identified cash inflows which make up the CGU. Determination of what constitutes a CGU is subject
to management’s judgment. Management has identified each location as a separate CGU. The asset composition
of the CGU can directly impact the recoverability of the assets included within the CGU.
-
The determination of which entities require consolidation is subject to management’s judgment regarding levels
of control, assumptions of risk and other factors that may ultimately include or exclude an entity from the
classification of a subsidiary or other entity requiring consolidation. For the purpose of recording asset
acquisitions, management must exercise judgment to determine if the acquisition meets the definition of a
business. Such determinations may affect the recorded amounts of specific assets and liabilities, goodwill and/or
transaction costs.
-
Management has applied judgment in assessing that the management contracts acquired have an indefinite
useful life because the Corporation purchased a complete system to operationally manage its own business and
that of other self storage businesses. The Corporation has acquired substantial know-how and expertise in
managing stores owned by third parties, including long term relationships, of which the Corporation will have
the benefit for an indefinite period of time. The management contracts have therefore been deemed to have
an indefinite useful life.
CANADA SELF STORAGE CENTRES
Annual Report
2024 35
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
4. Acquisitions
During the year ended December 31, 2024, the Corporation completed the below transactions some which met the
definition of a business under IFRS 3 - Business Combinations and some which were accounted for as asset
acquisitions. These acquisitions have been accounted for using the acquisition method with the results of the operation
being included in the consolidated financial statements of the Corporation since the date of acquisition. Details of the
acquisitions are:
First Quarter Acquisition:
During the first quarter, the Corporation completed the acquisition of one self storage location for $10,000,000 (subject
to customary adjustments). This acquisition was an arm’s length transaction. The purchase was paid for with cash on
hand.
A summary of the acquisition is as follows:
One Self Storage
Location
Acquisition date:
March 22, 2024
Land, Yards, Buildings & Improvements
9,076,496
$
Tenant Relationships
923,504
Net assets acquired
10,000,000
Consideration paid for the net assets acquired was obtained from the following:
Cash
10,000,000
Selected information for the acquisition, since its acquisition date:
Revenue
529,828
Operating costs
253,150
276,678
Amortization
509,018
Interest
122,251
Net income (loss)
(354,591)
$
CANADA SELF STORAGE CENTRES
Annual Report
2024 36
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 4 – Continued
Second Quarter Acquisitions:
During the second quarter, the Corporation completed the acquisitions of three self storage locations, one records
management business, and two commercial properties for $123,000,000 (subject to customary adjustments). These
acquisitions were arm’s length transactions. The purchases were paid for with the issuance of common shares, advances
from debt and cash on hand.
A summary of the acquisitions is as follows:
Records
Management
Business
One Self Storage
Location
One Self Storage
Location
One Commercial
Property
Acquisition date:
April 1, 2024
May 6, 2024
May 15, 2024
June 11, 2024
Land, Yards, Buildings & Improvements
1,608,525
$
33,612,129
$
7,640,502
$
15,500,000
$
Tenant Relationships
1,270,672
887,871
859,498
-
Goodwill
3,120,803
-
-
-
Net assets acquired
6,000,000
34,500,000
8,500,000
15,500,000
Consideration paid for the net assets acquired was obtained from the following:
Cash
6,000,000
34,500,000
8,500,000
13,100,000
Debt
-
-
-
2,400,000
6,000,000
34,500,000
8,500,000
15,500,000
Selected information for the acquisitions, since their acquisition date:
Revenue
1,548,910
733,012
393,788
459,975
Operating costs
740,498
360,702
253,181
153,357
808,412
372,310
140,607
306,618
Amortization
788,815
779,401
422,896
237,121
Interest
159,477
419,732
438,709
257,120
Net income (loss)
(139,880)
$
(826,823)
$
(720,998)
$
(187,623)
$
One Self Storage
Location
One Commercial
Property
Total
Acquisition date:
June 24, 2024
June 27, 2024
Land, Yards, Buildings & Improvements
37,750,120
$
20,000,000
$
116,111,276
$
Tenant Relationships
749,880
-
3,767,921
Goodwill
-
-
3,120,803
Net assets acquired
38,500,000
20,000,000
123,000,000
Consideration paid for the net assets acquired was obtained from the following:
Cash
34,500,000
5,000,000
101,600,000
Issuance of common shares
4,000,000
-
4,000,000
Debt
-
15,000,000
17,400,000
38,500,000
20,000,000
123,000,000
Selected information for the acquisitions, since their acquisition date:
Revenue
587,752
207,799
3,931,236
Operating costs
486,251
169,996
2,163,985
101,501
37,803
1,767,251
Amortization
1,049,383
49,130
3,326,746
Interest
554,496
300,000
2,129,534
Net income (loss)
(1,502,378)
$
(311,327)
$
(3,689,029)
$
CANADA SELF STORAGE CENTRES
Annual Report
2024 37
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 4 – Continued
Third Quarter Acquisition:
During the third quarter, the Corporation completed the acquisition of one self storage location for $71,500,000 (subject
to customary adjustments). This acquisition was an arm’s length transaction. The purchase was paid for with advances
from debt and cash on hand.
A summary of the acquisition is as follows:
One Self Storage
Location
Acquisition date:
September 16, 2024
Land, Yards, Buildings & Improvements
65,845,114
$
Tenant Relationships
5,654,886
Net assets acquired
71,500,000
Consideration paid for the net assets acquired was obtained from the following:
Cash
29,500,000
Debt
42,000,000
71,500,000
Selected information for the acquisition, since its acquisition date:
Revenue
1,694,947
Operating costs
322,390
1,372,557
Amortization
1,012,699
Interest
506,686
Net income (loss)
(146,828)
$
CANADA SELF STORAGE CENTRES
Annual Report
2024 38
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 4 – Continued
Fourth Quarter Acquisitions:
During the fourth quarter, the Corporation completed the acquisitions of two self storage locations for $10,500,000
(subject to customary adjustments). These acquisitions were arm’s length transactions. These purchases were paid for
with cash on hand.
A summary of the acquisitions is as follows:
One Self Storage
Location
One Self Storage
Location
Total
Acquisition date:
November 1, 2024
November 1, 2024
Land, Yards, Buildings & Improvements
5,544,504
$
3,621,141
$
9,165,645
$
Tenant Relationships
807,996
526,359
1,334,355
Net assets acquired
6,352,500
4,147,500
10,500,000
Consideration paid for the net assets acquired was obtained from the following:
Cash
6,352,500
4,147,500
10,500,000
Selected information for the acquisitions, since their acquisition date:
Revenue
100,210
61,220
161,430
Operating costs
38,478
34,640
73,118
61,732
26,580
88,312
Amortization
33,517
22,605
56,122
Net income (loss)
28,215
$
3,975
$
32,190
$
CANADA SELF STORAGE CENTRES
Annual Report
2024 39
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
5. Real Estate and Equipment
Land, Yards,
Intangible
Office &
Buildings &
Storage
Tenant
Computer
Improvements
Containers
Relationships
Vehicles
Equipment
Total
COST
December 31, 2022
2,093,883,014
$
21,802,573
$
200,773,748
$
8,567,580
$
12,646,331
$
2,337,673,246
$
Additions
80,258,751
2,779,957
-
1,640,040
4,842,352
89,521,100
Disposals
(57,670,257)
(145,898)
(5,573,217)
(108,583)
(79,113)
(63,577,068)
Business acquisitions
87,531,099
-
3,543,901
-
-
91,075,000
December 31, 2023
2,204,002,607
24,436,632
198,744,432
10,099,037
17,409,570
2,454,692,278
Additions
76,341,820
1,520,115
-
2,435,550
8,754,844
89,052,329
Disposals
(9,492,731)
(599,304)
-
-
(51,013)
(10,143,048)
Business acquisitions
199,710,531
-
11,680,666
488,000
-
211,879,197
December 31, 2024
2,470,562,227
$
25,357,443
$
210,425,098
$
13,022,587
$
26,113,401
$
2,745,480,756
$
ACCUMULATED DEPRECIATION
December 31, 2022
313,060,139
$
10,035,047
$
149,400,507
$
5,119,908
$
5,153,543
$
482,769,144
$
Depreciation
76,236,725
1,277,429
19,398,207
1,608,036
1,929,917
100,450,314
Disposals
(4,889,168)
(102,105)
(3,434,573)
(92,206)
(14,120)
(8,532,172)
December 31, 2023
384,407,696
11,210,371
165,364,141
6,635,738
7,069,340
574,687,286
Depreciation
78,061,657
1,340,191
17,728,079
1,761,979
3,669,942
102,561,848
Disposals
(1,706,457)
(360,790)
-
-
(2,969)
(2,070,216)
December 31, 2024
460,762,896
$
12,189,772
$
183,092,220
$
8,397,717
$
10,736,313
$
675,178,918
$
NET BOOK VALUE
December 31, 2023
1,819,594,911
13,226,261
33,380,291
3,463,299
10,340,230
1,880,004,992
December 31, 2024
2,009,799,331
13,167,671
27,332,878
4,624,870
15,377,088
2,070,301,838
Included in Land, Yards, Buildings & Improvements is Land at a carrying value of $726,020,133 (December 31, 2023 -
$655,859,597).
Included in Land, Yards, Buildings & Improvements are investment properties at a carrying value of $43,848,255
(December 31, 2023 - $8,217,169).
Included in Land, Yards, Buildings & Improvements is $34,652,128 (December 31, 2023 - $32,051,720) of construction in
process that is not being depreciated.
Included in Land, Yards, Buildings & Improvements are right-of-use assets at a carrying value of $83,555,346 (December
31, 2023 - $92,781,005), net of accumulated depreciation of $22,776,230 (December 31, 2023 - $16,343,082). The
continuity of the right-of-use assets is as follows:
Balance, December 31, 2022
75,282,052
$
Additions
23,416,757
Depreciation charge for the period
(5,917,804)
Balance, December 31, 2023
92,781,005
Additions and reassessments
(2,792,511)
Depreciation charge for the period
(6,433,148)
Balance, December 31, 2024
83,555,346
$
Self Storage Properties
CANADA SELF STORAGE CENTRES
Annual Report
2024 40
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
6. Goodwill and Intangible Assets
Management
Goodwill
Contracts
Trademarks
Website
Total
COST
December 31, 2022
105,320,195
$
16,300,000
$
387,828
$
66,371
$
122,074,394
$
Additions
-
-
1,091
4,533
5,624
Business acquisitions
2,996,364
-
-
-
2,996,364
December 31, 2023
108,316,559
16,300,000
388,919
70,904
125,076,382
Additions
-
-
8,757
314,598
323,355
Business acquisitions
3,120,803
-
-
-
3,120,803
December 31, 2024
111,437,362
$
16,300,000
$
397,676
$
385,502
$
128,520,540
$
ACCUMULATED AMORTIZATION
December 31, 2022
-
$
-
$
11,251
$
36,923
$
48,174
$
Amortization
-
-
38,291
29,577
67,868
December 31, 2023
-
-
49,542
66,500
116,042
Amortization
-
-
39,829
80,735
120,564
December 31, 2024
-
$
-
$
89,371
$
147,235
$
236,606
$
NET BOOK VALUE
December 31, 2023
108,316,559
16,300,000
339,377
4,404
124,960,340
December 31, 2024
111,437,362
16,300,000
308,305
238,267
128,283,934
At December 31, 2024, the Corporation performed its annual impairment test on goodwill and its indefinite life intangible
assets. Goodwill is allocated to the group of CGUs that benefited from the synergies of the business combination on which
the goodwill arose. The Corporation used the fair value less costs of disposal method to determine the recoverable
amount of the CGUs. Based on the impairment test performed, the Corporation concluded that no impairment exists on
its goodwill and indefinite life intangible assets.
Information regarding each impairment test is as follows:
Manitoba and Saskatchewan group of CGUs
-
The cash flow projection includes specific estimates based on the expected life of the properties, with a net
operating income growth rate of 2% which is consistent with management’s knowledge of the local market and
is lower than the CGUs recent historical growth rate.
-
Cash flows were discounted at a pre-tax rate of 5.18% based on management’s experience in this geographic
region.
Kamloops, BC group of CGUs
-
The cash flow projection includes specific estimates based on the expected life of the properties, with a net
operating income growth rate of 1%. The Corporation has seven stores in the region and is able to distribute
costs and operate more efficiently.
-
Cash flows were discounted at a pre-tax rate of 6.83% based on management’s experience in this geographic
region and the fact that the properties are on leased land.
London, ON group of CGUs
-
The cash flow projection includes specific estimates based on the expected life of the property, with a net
operating income growth rate of 2% which is consistent with management’s knowledge of the local market.
-
Cash flows were discounted at a pre-tax rate of 5.05% based on management’s experience in this geographic
region.
CANADA SELF STORAGE CENTRES
Annual Report
2024 41
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 6 – Continued
Sentinel Self-Storage group of CGUs
-
The cash flow projection includes specific estimates based on the expected life of the properties, with a net
operating income growth rate of 3%.
-
Given the location of the stores in this portfolio, over 20 stores in major markets and highly desirable locations
in Canada, management believes that this growth rate is sustainable, and is consistent with the CGUs historical
growth rate.
-
Cash flows were discounted at a pre-tax rate of 4.61% based on management’s experience and the superior
quality and location of these properties.
Portable Storage group of CGUs
-
The cash flow projection includes specific estimates based on the expected life of storage containers, with a net
operating income growth rate of 2% based on management’s experience and the exclusive marketing channels
the Corporation has for this product type.
-
Cash flows were discounted at a pre-tax rate of 6.64% based on management’s experience in these markets.
Real Storage group of CGUs
-
The cash flow projection includes specific estimates based on the expected life of the properties, with a net
operating income growth rate of 3.5%.
-
Given the location of the 38 stores in this portfolio and with the Corporation already operating in many of the
markets in which these stores are located, management believes that this growth rate is sustainable.
-
Cash flows were discounted at a pre-tax rate of 4.89% based on management’s experience and location of these
properties.
Management Division CGU
-
The cash flow projection includes specific estimates for five years with a terminal growth rate of 4%, which
management feels would be representative of the future indefinite cash flows from these assets.
-
Cash flows were discounted at a pre-tax rate of 20% based on what management deemed appropriate for the
nature of this type of revenue stream.
RecordXpress Division CGU
-
The cash flow projection includes specific estimates for five years with a growth rate of 2%, which management
feels would be representative of the future cash flows from these assets.
-
Cash flows were discounted at a pre-tax rate of 7.50% based on management’s experience in the records
management business.
Toronto - Danforth CGU
-
The cash flow projection includes specific estimates based on the expected life of the properties, with a net
operating income growth rate of 10% during the first four years and 5% thereafter, which is consistent with
management’s knowledge of the local market.
-
Cash flows were discounted at a pre-tax rate of 4.76% based on management’s experience in this geographic
region.
Dartmouth, NS CGU
-
Goodwill on this CGU arose as a result of a deferred tax liability recorded on acquisition, therefore an
impairment test was not performed this period.
CANADA SELF STORAGE CENTRES
Annual Report
2024 42
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 6 – Continued
Quebec City, QC CGU
-
Goodwill on this CGU arose as a result of a deferred tax liability recorded on acquisition, therefore an
impairment test was not performed this period.
The most sensitive inputs to the value in use model used for these groups of CGUs are the growth rate and the discount
rate:
-
A 1% increase or decrease in the growth rate would not result in an impairment of these groups of CGUs.
-
A 1% increase or decrease in the discount rate would not result in an impairment of these groups of CGUs.
Group of CGUs
Goodwill
Carrying Value
Goodwill
Carrying Value
Manitoba and Saskatchewan
2,621,716
$
25,302,975
$
2,621,716
$
26,465,066
$
Kamloops, BC
76,470
5,574,397
76,470
5,747,765
London, ON
142,807
2,951,960
142,807
1,915,298
Sentinel Self-Storage
52,442,159
357,105,110
52,442,159
358,579,285
Portable Storage
2,578,968
17,323,847
2,578,968
17,392,211
Real Storage
33,622,150
203,640,663
33,622,150
207,142,717
Management Division
3,364,706
19,364,705
3,364,706
19,364,705
RecordXpress Division
9,932,414
22,196,035
6,811,611
17,695,975
Toronto - Danforth
3,659,608
46,999,349
3,659,608
48,905,727
Dartmouth, NS
1,408,086
7,014,709
1,408,086
9,043,455
Quebec City, QC
1,588,278
12,967,237
1,588,278
15,060,884
111,437,362
$
720,440,987
$
108,316,559
$
727,313,088
$
December 31, 2024
December 31, 2023
CANADA SELF STORAGE CENTRES
Annual Report
2024 43
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
7. Debt
Rate
Weighted
Rate
Weighted
Range
Average
Balance
Range
Average
Balance
Mortgages
At amortized cost - Fixed
2.84% to 6.00 %
4.94%
554,199,300
2.84% to 9.20%
5.13%
306,666,120
Maturity: Mar 2025 to Sep 2031
Maturity: Mar 2025 to Dec 2029
At amortized cost - Variable
6.45%
3,161,703
7.47% to 8.20%
7.56%
26,490,427
Maturity: Jul 2027
Maturity: Jan 2024 to Jul 2024
At FVTPL - Variable
725,308,752
747,907,274
- Fixed via interest rate swap
1,335,567
(15,112,904)
4.86%
726,644,319
4.74%
732,794,370
Maturity: Jun 2025 to Jan 2031
Maturity: Apr 2024 to Jan 2031
4.90%
1,284,005,322
4.92%
1,065,950,917
Lines of Credit and Promissory Notes
At amortized cost - Fixed
4.50%
500,000
4.50%
500,000
Maturity: Mar 2025
Maturity: Mar 2025
At amortized cost - Variable
6.12%
92,145,131
7.73%
50,000,000
Maturity: Feb 2025 to Dec 2027
Maturity: Dec 2024 to Feb 2025
At FVTPL - Variable
300,895,063
308,871,737
- Fixed via interest rate swap
(895,063)
(8,871,737)
3.88%
300,000,000
3.88%
300,000,000
Maturity: Feb 2025
Maturity: Feb 2025
4.41%
392,645,131
4.43%
350,500,000
Deferred financing costs, net of accretion
(4,137,295)
(3,742,768)
4.78%
1,672,513,158
4.80%
1,412,708,149
December 31, 2024
December 31, 2023
Reconciliation of Debt
December 31, 2024
December 31, 2023
Debt, beginning of period
1,412,708,149
$
1,526,719,769
$
Advances from debt
606,589,054
286,760,989
Repayment of debt
(346,389,518)
(401,685,562)
Change in fair value of debt measured at FVTPL
24,425,145
23,140,035
Change in fair value of interest rate swaps
(24,425,145)
(23,140,035)
Total cash flow from debt financing activities
260,199,536
(114,924,573)
Change in deferred financing costs
(394,527)
912,953
Debt, end of period
1,672,513,158
$
1,412,708,149
$
The following table reconciles the changes in cash flows from financing activities for the Corporation's debt:
CANADA SELF STORAGE CENTRES
Annual Report
2024 44
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 7 – Continued
The bank prime rate at December 31, 2024 was 5.45% (December 31, 2023 – 7.20%).
Mortgages are secured by a first mortgage charge on the real estate and equipment of the Corporation, general security
agreements covering all assets of the Corporation, general assignment of rents and leases, and assignments of insurance
coverage over all assets of the Corporation. The Corporation must maintain certain financial ratios to comply with the
facilities. These covenants include debt service coverage ratios, a fixed charge coverage ratio, a tangible net worth ratio,
and a loan to value ratio. As of December 31, 2024, the Corporation is in compliance with all covenants.
The deferred financing costs consist of fees and costs incurred to obtain the related mortgage financing, less accumulated
amortization.
Principal repayments on mortgages, lines of credit, and promissory notes in each of the next five years are estimated as
follows:
Year 1
552,489,662
$
(includes lines of credit and promissory note of $393.0 million)
Year 2
53,876,014
$
Year 3
352,488,070
$
Year 4
402,109,019
$
Year 5
265,572,791
$
Thereafter
50,114,897
$
The Corporation entered into interest rate swap contracts in order to fix the interest rate on $1.0 billion of debt at a
weighted average rate of 4.57%. On $477 million of this debt, the bank entered into interest rate swap cancellation
agreements, allowing them to cancel the original swap agreements between January 15, 2025 and April 22, 2027.
During the year ended December 31, 2024, the Corporation recognized an unrealized loss on derivative financial
instruments of $6.3 million (December 31, 2023 – $1.5 million) and a realized gain on derivative financial instruments of
$nil (December 31, 2023 – $4.0 million). These derivative financial instruments mature between January 2025 and January
2031.
8. Debentures
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.
CANADA SELF STORAGE CENTRES
Annual Report
2024 45
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 8 – Continued
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.
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.
2023 Convertible Debentures
On January 9, 2023, $150 million of convertible senior unsecured debentures were issued at a price of $1,000 per
debenture with a term of sixty-six months, due March 31, 2028. These debentures bear a fixed interest rate of 5% per
annum, payable semi-annually in arrears on March 31 and September 30 of each year, commencing March 31, 2023. The
intended use of the net proceeds of the debentures is to fund potential future opportunities and for general corporate
purposes.
On and after March 31, 2026 and prior to March 31, 2027, the debentures will be redeemable in whole or in part from
time to time by the Corporation at a redemption price equal to 125% 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 March 31, 2027
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 March 31, 2028, the debentures will be convertible into freely tradeable common shares
of the Corporation at the option of the holder at a conversion price of $8.65 per share.
The debentures were recorded as a financial instrument at a fair value of $150 million, net of deferred financing costs of
$6.0 million, an equity component of $18.2 million, and a deferred tax liability of $4.7 million. The equity component of
the convertible debentures relates to the portion of the debentures' value that is attributed to the conversion option,
which allows the holder to convert the debentures into common shares of the Corporation.
CANADA SELF STORAGE CENTRES
Annual Report
2024 46
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 8 – Continued
The debentures are subsequently measured at amortized cost using the effective interest method over the life of the
debentures. The balance of the debentures is:
December 31, 2024
December 31, 2023
Opening balance
261,437,659
$
128,682,883
$
Additions during period
-
150,000,000
Issuance costs
-
(6,009,911)
Equity component of convertible
debentures
-
(18,245,003)
Accretion on hybrid debentures
1,130,998
1,130,999
Accretion on convertible debentures
4,469,820
4,195,644
Interest payable
14,965,475
1,871,047
Interest paid
(14,965,475)
-
Debentures repurchased
-
(188,000)
Ending balance
267,038,477
$
261,437,659
$
9. Share Capital
Authorized: Unlimited number of common, voting shares of no par value.
Authorized: Unlimited number of preferred non-voting shares issuable in series at an issuance price of $1 per share.
Common shares issued:
Number of Shares
Amount
Balance, December 31, 2022
378,017,360
424,954,374
$
Issued on acquisitions
681,601
4,250,000
Dividend reinvestment plan
252,145
1,441,790
Stock options redeemed
5,000
(5,038,500)
Common shares repurchased
(4,395,798)
(21,562,655)
Balance, December 31, 2023
374,560,308
404,045,009
Issued on acquisitions
640,000
4,000,000
Dividend reinvestment plan
374,619
1,810,124
Stock options redeemed
-
(108,510)
Common shares repurchased
(8,620,137)
(36,309,062)
Share buyback tax
-
(725,903)
Balance, December 31, 2024
366,954,790
372,711,658
$
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.
The Corporation may from time to time purchase its common shares in accordance with the rules prescribed by the
Exchange or regulatory policies.
CANADA SELF STORAGE CENTRES
Annual Report
2024 47
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 9 – Continued
Dividend Reinvestment Plan
Represents common shares issued under the Corporation’s dividend reinvestment plan (“DRIP") for holders of common
shares. Under the terms of the DRIP, eligible registered holders of a minimum of 10,000 Common Shares 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.
Contributed surplus:
December 31, 2024
December 31, 2023
Opening balance
40,568,013
$
38,451,552
$
Stock options, RSUs/DSUs redeemed
(1,862,177)
(1,679,165)
Stock based compensation
2,684,644
3,795,626
Ending balance
41,390,480
$
40,568,013
$
Stock Options
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 technical consultants of the Corporation, non-transferable
options to purchase common shares provided that: i) the number of common shares reserved for issuance will not exceed
10% of the issued and outstanding common shares; ii) the options are exercisable for a period of up to 10 years from the
date of grant; iii) the number of common shares reserved for issuance to any individual director or officer will not exceed
5% of the issued and outstanding common shares; and iv) the number of common shares reserved for issuance to all
technical consultants, if any, will not exceed 2% of the issued and outstanding shares. The exercise price for purchasing
these shares cannot be less than the minimum exercise price as provided by Exchange rules.
The following table summarizes information about stock options outstanding and exercisable as at:
Options
Options
Opening
36,587,000
3.99
$
36,342,000
3.88
$
Redeemed
(752,500)
4.21
(1,355,000)
2.53
Granted
-
-
1,600,000
5.23
Closing and Exercisable
35,834,500
3.99
$
36,587,000
3.99
$
Weighted
Average Price
December 31, 2024
December 31, 2023
Weighted
Average Price
The fair value of options granted was estimated on the date of the grant, as determined by using the Black-Scholes option
pricing model with the following assumptions:
2023
Dividend Yield
0.01%
Risk-Free Interest Rate
3.28%
Expected Life of Options
4 Years
Expected Volatility of the Corporation's Common Shares
31.73%
CANADA SELF STORAGE CENTRES
Annual Report
2024 48
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 9 – Continued
Stock options exercisable and outstanding are as follows:
Exercise Price
Vesting Date
Expiry Date
December 31, 2024
December 31, 2023
0.41
$
Apr. 28, 2015
Apr. 28, 2025
1,125,500
1,125,500
0.50
$
Sep. 14, 2015
Sep. 14, 2025
1,305,000
1,305,000
1.36
$
Dec. 21, 2016
Dec. 21, 2026
2,420,000
2,620,000
1.78
$
Mar. 16, 2017
Mar. 16, 2027
2,645,000
2,645,000
2.52
$
May 4, 2018
May 4, 2028
2,655,000
2,660,000
2.90
$
May 28, 2019
May 28, 2029
5,296,500
5,376,500
3.98
$
Dec. 15, 2020
Dec. 15, 2030
5,433,000
5,515,500
6.31
$
Dec. 20, 2021
Dec. 20, 2031
6,595,000
6,767,500
5.94
$
Dec. 19, 2022
Dec. 19, 2032
6,793,500
6,972,000
5.23
$
Dec. 28, 2023
Dec. 28, 2033
1,566,000
1,600,000
Options exercisable and outstanding
35,834,500
36,587,000
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 (“RSUs”), Deferred Share Units (“DSUs”) and Named
Executive Officer Restricted Share Units (“Neo RSUs”), 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 stock based compensation
arrangements, may not exceed 10% of the issued shares of the Corporation.
The RSUs and DSUs granted vest in equal annual amounts over three years. The Neo RSUs vest three years after the date
of grant. RSUs, DSUs and Neo RSUs are entitled to be credited with dividend equivalents in the form of additional RSUs,
DSUs and Neo RSUs, 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 stock 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, 2024, 4,621,428 TRS were outstanding at a value of ($2,759,070) (December 31, 2023
– 3,486,628 TRS were outstanding at a value of $2,141,355).
At December 31, 2024, 100% of the combined DSU and RSU exposures were economically hedged. Hedge accounting is
not applied for the DSU/RSU hedging program.
During the year ended December 31, 2024, the Corporation issued nil common shares at a value of $nil (December 31,
2023 – 160,176 common shares at a value of $1,007,507) under the Plan. A total of 979,878 common shares at a value of
$4,917,329 were outstanding at December 31, 2024 (December 31, 2023 – 980,328 common shares at a value of
$4,923,332).
CANADA SELF STORAGE CENTRES
Annual Report
2024 49
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 9 – Continued
Dividends
A cash dividend of $0.002888 per common share was declared on March 15, 2024, and paid to shareholders of record on
March 28, 2024.
A cash dividend of $0.002903 per common share was declared on June 17, 2024, and paid to shareholders of record on
June 28, 2024.
A cash dividend of $0.002917 per common share was declared on September 13, 2024, and paid to shareholders of record
on September 27, 2024.
A cash dividend of $0.002932 per common share was declared on December 16, 2024, and paid to shareholders of record
on December 31, 2024.
10. Financial Risk Management and Fair Value
The Corporation is required to disclose certain information concerning its financial instruments. The fair values of the
Corporation’s cash and short term deposits, accounts receivable and, accounts payable and accrued liabilities
approximate their carrying amount due to the relatively short periods to maturity of these financial instruments. The fair
value of the Corporation’s debt obligations is estimated based on discounted future cash flows using discount rates that
reflect current market conditions for instruments with similar terms and risks. Such fair value estimates are not necessarily
indicative of the amounts the Corporation might pay or receive in actual market transactions.
IFRS establishes a three tier fair value hierarchy to reflect the significance of the inputs used in measuring the fair value
of the Corporation’s financial instruments. The three levels are:
Level 1 – This level includes assets and liabilities measured at fair market value based on unadjusted quoted
prices for identical assets and liabilities in active markets that the Corporation can access on the measurement
date.
Level 2 – This level includes measurements based on directly or indirectly observable inputs other than quoted
prices included in Level 1. Financial instruments in this category are measured using valuation models or other
standard valuation techniques that rely on observable market inputs.
Level 3 – The measurements used in this level rest on inputs that are unobservable, unavailable, or whose
observable inputs do not justify the largest part of the fair value instrument.
The fair value of financial instruments was as follows:
Fair Value
Carrying
Fair
Carrying
Fair
Hierarchy
Amount
Value
Amount
Value
Financial instruments:
Debt - at amortized cost
Level 2
(645,868,839)
(640,059,885)
(379,913,779)
(368,668,877)
Debt - at FVTPL
Level 2
(1,026,203,815)
(1,026,203,815)
(1,056,779,011)
(1,056,779,011)
Interest rate swaps
Level 2
(440,504)
(440,504)
23,984,641
23,984,641
Derivative liabilities - at FVTPL
Level 2
(5,301,905)
(5,301,905)
-
-
Derivative assets - at FVTPL
Level 2
-
-
1,028,346
1,028,346
December 31, 2024
December 31, 2023
CANADA SELF STORAGE CENTRES
Annual Report
2024 50
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 10 – Continued
Financial instruments may expose the Corporation to a number of financial risks including interest rate risk, credit risk
and liquidity risk.
a) Interest rate risk – 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 interest rate swap contracts, 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. There is
interest rate risk associated with variable rate mortgages and lines of credit as interest expense is impacted
by changes in the prime rate. The impact on the Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss) if interest rates on variable rate debt had been 1% higher or lower for the
year ended December 31, 2024 would have been approximately $953,068 (December 31, 2023 - $764,904).
b) Credit risk – 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 1% of the Corporation’s monthly
revenue. This diversification in the customer base reduces credit risk from any given tenant.
The Corporation has $398,254 of receivables from related parties at December 31, 2024 (December 31,
2023 - $1,030,000). Management believes there is low credit risk associated with related party balances
due to the nature of the relationships and the historical loss rates.
Change in the Corporation’s allowance for expected credit losses is as follows:
Balance December 31, 2022
499,536
$
Charges or adjustments during the period
-
Balance December 31, 2023
499,536
Charges or adjustments during the period
(278,405)
Balance December 31, 2024
221,131
$
The creation and release of the allowance for expected credit losses has been included in operating costs
in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Amounts charged to
the allowance account are generally written off when there is no expectation of recovering additional cash.
c) Liquidity risk – 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. It is the Corporation’s intention to renew any debt coming due in the next fiscal year.
The maturities of long term financial liabilities are summarized in Note 7.
CANADA SELF STORAGE CENTRES
Annual Report
2024 51
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 10 – Continued
Unless otherwise noted, it is management’s opinion that the Corporation is not exposed to significant currency risk.
11. Income Tax
2024
2023
Loss before taxes
(39,281,042)
(10,336,612)
Combined federal and provincial statutory income tax rate
26.50%
26.50%
Income tax recovery calculated at statutory rate
(10,409,476)
(2,739,202)
Non-deductible items
868,714
848,127
Change in estimate
285,249
(6,584,653)
Change in tax rate and other items
197,603
(160,726)
Income tax recovery
(9,057,910)
(8,636,454)
Movements in deferred tax assets (liabilities) related to temporary differences during the period are as follows:
December 31,
2023
Recognized in
earnings
Recognized in
Equity
Acquired in
Business
Combinations
December 31,
2024
Property, plant and equipment
(134,614,981)
4,246,390
-
-
(130,368,591)
Goodwill and intangible assets
14,024,572
3,026,257
-
-
17,050,829
Debt
(6,879,127)
1,355,145
-
-
(5,523,982)
Unrealized fair value of derivatives
(267,067)
1,643,245
-
-
1,376,178
Lease liability
25,896,817
(2,046,977)
-
-
23,849,840
Deferred financing costs
2,537,663
(624,862)
-
-
1,912,801
Non-capital loss carry forwards
59,735,450
1,458,712
-
-
61,194,162
Deferred tax asset (liability)
(39,566,673)
9,057,910
-
-
(30,508,763)
12. Related Party Transactions
The Corporation holds a Master Franchise Agreement 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 Iqbal Khan and Steven Scott 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, 2024, the
Corporation paid $358,929 (December 31, 2023 - $382,400) for royalties and $1,704,770 (December 31, 2023 -
$3,054,716) 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, 2024 was $57,625
(December 31, 2023 - $52,758) payable to CPFI.
The Corporation has management agreements with Access Self Storage Inc. and related companies (“Access Group”).
These companies are related to Iqbal Khan and Steven Scott 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, 2024, the Corporation received $4,665,871 (December
31, 2023 - $6,017,053) in payments and reimbursements related to the management agreements. During the year ended
CANADA SELF STORAGE CENTRES
Annual Report
2024 52
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 12 – Continued
December 31, 2024, the Corporation also incurred $68,689,359 (December 31, 2023 - $50,583,697) 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, 2024 was $2,671,226 (December 31, 2023 - $2,790,800) payable to the Access
Group. Included in accounts receivable as at December 31, 2024 was $398,254 (December 31, 2023 - $1,030,452)
receivable from the Access Group.
Key management personnel are those persons having authority and responsibility for planning, directly and indirectly
directing, and controlling the activities of the Corporation. Key management personnel are defined as officers and
Directors of the Corporation.
The remuneration of key management personnel for employment services rendered are as follows:
December 31, 2024
December 31, 2023
Wages, management fees, bonuses and directors fees
1,210,478
$
1,324,495
$
Stock based compensation
702,988
1,047,580
1,913,466
$
2,372,075
$
13. Capital Risk Management
The Corporation’s objectives when managing capital are to safeguard the Corporation’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders. The Corporation defines capital
as shareholders’ equity excluding contributed surplus and long term debt. The Corporation manages the capital structure
and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying
assets. To maintain or adjust the capital structure, the Corporation may attempt to issue new shares, issue new debt,
acquire or dispose of assets, and adjust the amount of cash and short term deposits. The Board of Directors does not
establish a quantitative return on capital criteria, but rather promotes year over year sustainable growth.
The Corporation reviews and assesses its capital structure on an ongoing basis. The Corporation determines the
appropriate mortgage debt to be placed on properties at the time a particular property is acquired or when an existing
mortgage financing matures. Consideration is given to various factors including, but not limited to: interest rates,
financing costs, the term of the mortgage and the strength of cash flow arising from the underlying asset. Mortgage debt
is usually only secured by the underlying asset. The Corporation monitors its capital using a debt to fair value ratio. Except
for the debt covenants described in Note 7, the Corporation is not subject to any externally imposed capital requirements.
There have been no changes to how the Corporation manages its capital in the current period.
CANADA SELF STORAGE CENTRES
Annual Report
2024 53
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
14. Segmented Information
The Corporation operates three reportable business segments. Each segment is a component of the Corporation for which
separate discrete financial information is available for evaluation by the chief operating decision makers of the
Corporation.
-
Self Storage – involves the customer leasing space at the Corporation’s property for short or long term storage.
Self storage also includes customers utilizing space for inventory storage for last mile delivery, small commercial
operations, and vehicles.
-
Portable Storage – involves delivering a portable storage unit to the customer. The customer can opt to keep
the portable storage unit at their location, or have it moved to another location for further storage.
-
Management Division – involves revenues generated from the management of stores owned by third parties.
The Corporation evaluates performance and allocates resources based on earnings before interest, taxes, depreciation
and amortization, and stock based compensation. Corporate costs are not allocated to the segments and are shown
separately.
Self
Portable
Management
Storage
Storage
Division
Corporate
Total
Revenue
292,881,797
$
9,895,664
$
1,927,744
$
-
$
304,705,205
$
Operating costs
96,299,666
6,803,763
-
-
103,103,429
Net operating income
196,582,131
3,091,901
1,927,744
-
201,601,776
Acquisition and integration
-
-
-
7,698,561
7,698,561
Selling, general and admin.
-
-
-
24,335,050
24,335,050
Stock based compensation
-
-
-
2,684,644
2,684,644
Depreciation and amortization
98,006,710
2,634,628
-
2,041,074
102,682,412
Interest
90,006,235
-
-
-
90,006,235
Interest accretion on convertible
debentures
-
-
-
4,469,820
4,469,820
Loss on disposal of assets
-
-
-
2,675,845
2,675,845
Unrealized loss on derivative
financial instruments
-
-
-
6,330,251
6,330,251
Deferred tax recovery
-
-
-
(9,057,910)
(9,057,910)
Net income (loss)
8,569,186
$
457,273
$
1,927,744
$
(41,177,335)
$
(30,223,132)
$
Additions:
Real estate and equipment
292,342,880
$
4,181,180
$
-
$
4,407,466
$
300,931,526
$
CANADA SELF STORAGE CENTRES
Annual Report
2024 54
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 14 – Continued
For the Year Ended December 31, 2023
Self
Portable
Management
Storage
Storage
Division
Corporate
Total
Revenue
276,116,878
$
10,570,678
$
2,037,056
$
-
$
288,724,612
$
Operating costs
87,901,374
7,230,494
-
-
95,131,868
Net operating income
188,215,504
3,340,184
2,037,056
-
193,592,744
Acquisition and integration
-
-
-
5,904,217
5,904,217
Selling, general and admin.
-
-
-
24,290,628
24,290,628
Stock based compensation
-
-
-
3,795,626
3,795,626
Depreciation and amortization
97,665,700
1,951,873
-
900,609
100,518,182
Interest
83,297,441
-
-
-
83,297,441
Interest accretion on convertible
debentures
-
-
-
4,195,644
4,195,644
Realized gain on real estate
-
-
-
(15,528,115)
(15,528,115)
Realized gain on derivative
financial instruments
-
-
-
(3,994,356)
(3,994,356)
Unrealized loss on derivative
financial instruments
-
-
-
1,450,089
1,450,089
Deferred tax recovery
-
-
-
(8,636,454)
(8,636,454)
Net income (loss)
7,252,363
$
1,388,311
$
2,037,056
$
(12,377,888)
$
(1,700,158)
$
Additions:
Real estate and equipment
173,119,868
$
5,814,306
$
-
$
1,661,926
$
180,596,100
$
Total Assets
Self
Portable
Management
Storage
Storage
Division
Corporate
Total
As at December 31, 2023
1,887,649,008
$
20,767,600
$
16,587,785
$
119,213,563
$
2,044,217,956
$
As at December 31, 2024
2,069,204,117
$
22,091,822
$
17,635,541
$
125,036,780
$
2,233,968,260
$
15. Lease Liabilities
The Corporation leases buildings and land in British Columbia, Alberta, Manitoba, Ontario, Quebec, and the North West
Territories. The leases expire between 2026 and 2057, with the leases expiring in 2026 and 2027 having up to 5 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, 2024, the Corporation recognized $3,878,481 (December 31, 2023 - $3,668,569) in
interest expense related to its lease liabilities.
CANADA SELF STORAGE CENTRES
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2024 55
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
Note 15 – Continued
A reconciliation of the lease liabilities associated with self storage properties is as follows:
December 31, 2024
December 31, 2023
Balance, beginning of period
99,715,973
$
80,518,572
$
Additions and reassessments
(2,966,335)
23,416,757
Cash payments
(8,485,753)
(7,887,925)
Interest
3,878,481
3,668,569
Balance, end of period
92,142,366
$
99,715,973
$
Lease payments in each of the next five years are estimated as follows:
Year 1
9,315,084
$
Year 2
9,391,416
$
Year 3
8,643,862
$
Year 4
8,317,926
$
Year 5
7,372,821
$
Thereafter
92,196,722
$
16. Subsequent Events
On February 20, 2025, the Corporation approved an increase to the quarterly dividend for Q1 2025 by 0.5% to $0.002946
per common share.
On February 20, 2025, the Corporation announced that it increased one of its credit facilities from $320 million to $400
million and extended the maturity date to February 28, 2028.
17. Comparative Figures
Certain comparative figures have been reclassified to comply with the current presentation.
CANADA SELF STORAGE CENTRES
Annual Report
2024 56
StorageVault Canada Inc.
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2024 and 2023
StorageVault Canada Inc.
DIRECTORS
OFFICERS
Ben Harris
Steven Scott
Bedford, NY
Chief Executive Officer
Iqbal Khan
Iqbal Khan
Toronto, ON
Chief Financial Officer
Deborah Robinson
Toronto, ON
Steven Scott
Toronto, ON
Alan Simpson
Regina, SK
Mary Vitug
Toronto, ON
LEGAL COUNSEL
AUDITORS
DLA Piper (Canada LLP)
MNP LLP
Livingston Place
2000, 112 4th Ave S.W.
1000, 250 2nd St. S.W.
Calgary, AB T2P 0H3
Calgary, AB T2P 0C1
Telephone 403-263-3385
Telephone 403-296-4470
Facsimile 403-269-8450
Facsimile 403-296-4474
HEAD OFFICE
REGISTRAR & TRANSFER AGENT
StorageVault Canada Inc.
TSX Trust
100 Canadian Rd.
300 – 5th Ave. S.W., 10th Floor
Toronto, ON M1R 4Z5
Calgary, AB T2P 3C4
Telephone 1-877-622-0205
Telephone 403-218-2800
Email: ir@storagevaultcanada.com
Facsimile 403-265-0232
TSX LISTING:
SVI
CANADA SELF STORAGE CENTRES
Annual Report
2024 57
MANAGEMENT’S
DISCUSSION AND
ANALYSIS
CANADA SELF STORAGE CENTRES
Annual Report
2024 58
StorageVault Canada Inc.
(the “Corporation”)
Form 51-102F1
Management’s Discussion and Analysis
For the Three Months and Fiscal Year Ended December 31, 2024
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, 2024. This MD&A should be read in conjunction with the audited fiscal 2024 consolidated
financial statements and accompanying notes contained therein, which have been prepared in Canadian dollars and in
accordance with IFRS Accounting Standards. This MD&A is based on information available to Management as of February
20, 2025.
FORWARD LOOKING STATEMENTS
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 2025; 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 2024 were purchased on January 1, 2024;
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 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 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
CANADA SELF STORAGE CENTRES
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2024 59
in fiscal 2024 being extrapolated to the entire period for 2024 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.sedarplus.ca. 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 2025 and revenue and NOI growth for 2025 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.sedarplus.ca.
CANADA SELF STORAGE CENTRES
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2024 60
TABLE OF CONTENTS
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
61
62
63
65
66
68
75
80
81
81
84
84
86
88
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GLOSSARY OF TERMS
The following abbreviated terms are used in the Management’s Discussion & Analysis and have the following respective
meanings:
“AFFO” means FFO plus acquisition and integration costs and interest expense on lease-up stores. Acquisition and
integration costs are one time in nature to the specific assets purchased or pending and are expensed under IFRS. Interest
expense on lease-up stores relates to interest expensed, that would be otherwise be capitalized, for non-stabilized stores
(portion remaining to be leased up). AFFO is a non-IFRS measure – see Accounting Policies Non-IFRS Measures;
“Existing Self Storage” means stabilized 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;
“FFO” means net income (loss) excluding gains or losses from the sale of depreciable real estate, plus depreciation and
amortization, stock based compensation expenses, realized gains or losses on real estate, realized and unrealized gains or
losses on interest rate swaps, interest accretion on convertible debentures, realized and unrealized gains or losses on
derivative financial instruments and deferred income taxes; and after adjustments for equity accounted entities and non-
controlling interests;
“IFRS” means IFRS Accounting Standards;
“MD & A” means this Management’s Discussion and Analysis disclosure document;
“New Self Storage” means non-stabilized stores that have not been owned or leased continuously since the beginning of the
previous fiscal year or stores that are under significant renovations; New Self Storage is a non-IFRS measure – see Accounting
Policies Non-IFRS Measures;
“NOI” 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;
“Non-IFRS Measures” 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;
“Q1, Q2, Q3 or Q4” means a three month fiscal quarter of the Company, ending on March 31, June 30, September 30 and
December 31 respectively;
“Revenue Management” 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;
“Store” means self storage property or location or facility or site;
“Subsequent Events” means material transactions that have occurred from January 1, 2025 to February 20, 2025;
“SVI” means StorageVault Canada Inc.;
“The Company” or “The Corporation” or “We” or “Our” or “StorageVault” means StorageVault Canada Inc.
CANADA SELF STORAGE CENTRES
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NATURE OF OUR BUSINESS
Business Overview
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 customers. The
common shares of the Company are publicly traded on the TSX under the symbol ‘SVI’.
As of December 31, 2024, SVI owned 221 stores and 5,091 portable storage units across Canada, for a total of 12,602,511
square feet of rentable storage space in 109,480 rental units. The stores operate under the Access Storage, Depotium Mini-
Entrepots and Sentinel Storage brands. Our portable storage business operates under the Cubeit and PUPS brands. Our
records management business operates under the RecordXpress brand. Our larger commercial and warehouse storage
business operates under the FlexSpace Logistics brand.
In addition to our owned stores, SVI manages 30 stores that are owned by third parties for a management fee, bringing the
total number of stores owned and managed to 251.
Through our FlexSpace, records management and portable storage services, we are able to leverage our national storage
presence to offer last-mile storage, warehouse and mobilization solutions to store and 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.
The Storage Landscape
The significant growth in demand for storage space in Canada over the past decade has largely been driven by the following
factors: change of circumstances, smaller living areas and workspaces, business incubation, e‐commerce, last‐mile solutions,
lack of warehouse space, population growth, immigration, downsizing, renovations, moving, death, divorce, insurance, and
others. We expect these trends to continue in 2025 and beyond.
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 billion square feet across 51,000 plus
stores, 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
opportunities for consolidation, expansion and development. 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.
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 demand and
supply pricing strategies. This can result in short term fluctuations in occupancy and revenue per square foot at existing
stores.
CANADA SELF STORAGE CENTRES
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2024 63
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.
BUSINESS AND GENERAL CORPORATE STRATEGY
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.
Growth Strategies
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, 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, moving and storage supplies, 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 the 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,
stores are able to achieve significant top and bottom line growth, even when occupancies are stable.
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 fiscal 2024, we completed 110,000 square feet of expanded and renovated space and expect to
complete 150,000 square feet of expanded and renovated space in fiscal 2025. In addition, we have another 500,000 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
CANADA SELF STORAGE CENTRES
Annual Report
2024 64
with the larger geographic and operating footprint achieved through our growth strategy, we believe that 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 provides a significant competitive
advantage as government organizations, such as hospitals and charities, do not want their confidential information under
foreign ownership.
Expansion of FlexSpace Logistics Business
The FlexSpace Logistics business is a 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 inventory management. A true one-stop shop for businesses, especially small to medium sized companies
who were previously underserved in the space.
Financing Strategy
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 may 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 rates, amortization periods,
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 may, 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.
CANADA SELF STORAGE CENTRES
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2024 65
OUTLOOK
The Corporation’s outlook for acquisitions, share capital, results from operations and subsequent events are:
Acquisitions
In 2025, we expect to acquire over $100 million of assets.
Share Capital
The Corporation may, from time to time, issue common shares to the public or to vendors to fund the purchase of storage
assets. With the significant cash flow retained by the Corporation, future issuances will be dependent upon financing needs,
acquisition opportunities, expansion plans, equity market conditions and transaction pricing.
Based on market conditions, the Corporation may from time to time purchase its’ common shares in accordance with the
rules prescribed under the TSX or regulatory policies.
Results from Operations
We expect continued growth in revenue and NOI in 2025 as we execute on our revenue management system, grow occupancy
and control costs. We also expect contributions from the acquisitions and expansions made in 2024 and in fiscal 2023 as
stores move towards stabilization.
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.
Subsequent Events
The following item(s) have been announced by the Corporation:
•
On February 20, 2025, approved the increase to the quarterly dividend for Q1 2025 by 0.5% to $0.002946 per
common share.
•
On February 20, 2025, the Corporation announced it increased one of its credit facilities from $320 million to $400
million and extended the maturity date to February 28, 2028.
CANADA SELF STORAGE CENTRES
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2024 66
DESCRIPTION OF OUR OPERATIONS
As at December 31, 2024, the Corporation owned the following self storage and portable storage operations:
Location
Acres
Number of
Stores
Units
Rentable Square
Feet
British Columbia
48
20
10,850
1,131,374
Alberta
154
44
22,153
2,543,417
Saskatchewan
38
12
3,130
413,654
Manitoba
41
12
5,220
511,182
Ontario
382
104
50,739
6,112,328
Quebec
43
22
10,328
1,053,575
Nova Scotia
22
7
1,969
255,235
Portable Storage Units
5,091
581,746
Total
728
221
109,480
12,602,511
Management is focused on increasing NOI and value as follows:
Revenue Management
Revenue per square foot is the greatest driver in increasing NOI and shareholder 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.
Professional Management
The management team at SVI has extensive experience in all aspects of the storage industry including:
•
delivering superior results
•
management of over 250 storage locations throughout Canada
•
acquisition, development and management of over 18 million square feet of storage space
•
over 200 years of combined experience in the storage industry by senior management
Marketing
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.
Costco Supplier
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.
Reservation Centre
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.
CANADA SELF STORAGE CENTRES
Annual Report
2024 67
Technology and Software
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.
Economies of Scale
The size and scope of our management platform, combined with the growing size of our own operations, translates into
higher 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.
CANADA SELF STORAGE CENTRES
Annual Report
2024 68
FINANCIAL RESULTS OVERVIEW
As of December 31, 2024, SVI completed a total of $215.0 million of acquisitions (9 locations and one records management
and shredding business). In fiscal 2023, SVI acquired 7 locations and 2 adjacent parcels of land for $94.6 million and
announced an additional $15.5 million of transaction that closed in 2024. The timing of these acquisitions affects the
comparative results.
Selected Financial Information
2024
2023
$
%
2024
2023
$
%
Storage revenue and related services
79,741,783
$
73,750,304
$
5,991,479
$
8.1%
302,777,461
$
286,687,556
$
16,089,905
$
5.6%
Management fees
498,952
518,609
(19,657)
-3.8%
1,927,744
2,037,056
(109,312)
-5.4%
80,240,735
74,268,913
5,971,822
8.0%
304,705,205
288,724,612
15,980,593
5.5%
Operating costs
26,884,298
24,336,840
2,547,458
10.5%
103,103,429
95,131,868
7,971,561
8.4%
Net operating income 1
53,356,437
49,932,073
3,424,364
6.9%
201,601,776
193,592,744
8,009,032
4.1%
Less:
Acquisition and integration costs
1,454,130
1,959,784
(505,654)
-25.8%
7,698,561
5,904,217
1,794,344
30.4%
Selling, general and administrative
6,108,158
6,300,966
(192,808)
-3.1%
24,335,050
24,290,628
44,422
0.2%
Interest
24,159,210
20,809,179
3,350,031
16.1%
90,006,235
83,297,441
6,708,794
8.1%
Stock based compensation
1,989,486
2,944,323
(954,837)
-32.4%
2,684,644
3,795,626
(1,110,982)
-29.3%
Realized (gain) loss on real estate
(1,256,871)
87,689
(1,344,560)
-1533.3%
2,675,845
(15,528,115)
18,203,960
-117.2%
Realized (gain) loss on derivative
financial instruments
-
(23,454)
23,454
-100.0%
-
(3,994,356)
3,994,356
-100.0%
Unrealized (gain) loss on derivative
financial instruments
4,215,334
18,458,800
(14,243,466)
-77.2%
6,330,251
1,450,089
4,880,162
336.5%
Interest accretion on convertible
debentures
1,129,877
4,195,644
(3,065,767)
-73.1%
4,469,820
4,195,644
274,176
6.5%
Depreciation and amortization
26,240,752
25,278,530
962,222
3.8%
102,682,412
100,518,182
2,164,230
2.2%
64,040,076
80,011,461
(15,971,385)
-20.0%
240,882,818
203,929,356
36,953,462
18.1%
Net income (loss) before tax
(10,683,639)
(30,079,388)
19,395,749
64.5%
(39,281,042)
(10,336,612)
(28,944,430)
-280.0%
Deferred tax (expense) recovery
4,080,153
2,292,414
1,787,739
78.0%
9,057,910
8,636,454
421,456
4.9%
Net income (loss) after tax
(6,603,486)
$
(27,786,974)
$
21,183,488
$
76.2%
(30,223,132)
$
(1,700,158)
$
(28,522,974)
$
-1677.7%
1 Non-IFRS Measure.
Weighted average number of common shares outstanding
Basic
370,088,194
374,749,506
(4,661,312)
-1.2%
372,816,185
376,930,150
(4,113,965)
-1.1%
Diluted
370,088,194
383,424,053
(13,335,859)
-3.5%
372,816,185
385,604,967
(12,788,782)
-3.3%
Net income (loss) per common share
Basic
(0.018)
$
(0.074)
$
(0.081)
$
(0.005)
$
Diluted
(0.018)
$
(0.072)
$
(0.081)
$
(0.004)
$
Change
Three Months Ended December 31
Fiscal
Change
(unaudited)
(audited)
Storage revenue and related services
For the three months ended December 31, 2024, the Corporation had revenues of $79.7 million (December 31, 2023 - $73.8
million), an increase of 8.1% for the quarter and contributing to a $16.1 million or 5.6% increase over fiscal 2023. While
muted by lower occupancy levels throughout the year, this increase is attributable to incremental revenue from organic
revenue growth and from the stores acquired in the 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, 2024, management fees decreased by 3.8% over the same prior year period and
decreased 5.4% for the fiscal year. The decrease in management fees is a result of acquiring managed stores.
CANADA SELF STORAGE CENTRES
Annual Report
2024 69
Operating costs
Operating costs for the three months ended December 31, 2024 were $26.9 million (December 31, 2023 - $24.3 million)
resulting in an increase of $8.0 million or 8.4% over fiscal 2023. The increase relate to stores acquired in the past 12 months
and mainly increases to costs in advertising, property taxes, repairs and maintenance and wages.
Net income (loss)
Our net loss of $6.6 million for the three months ended December 31, 2024 results from non-cash items of $26.2 million of
depreciation and amortization, $2.0 million in stock based compensation, $1.1 million of interest accretion on convertible
debentures, $4.2 million of unrealized loss on derivative financial instruments and offset with $4.1 million of deferred tax
recovery.
Net operating income
For the three months ended December 31, 2024, the Corporation had net operating income (NOI), a non-IFRS measure, of
$53.4 million (December 31, 2023 - $49.9 million), an increase of $3.4 million or 6.9% for the quarter and contributing to a
$8.0 million or 4.1% increase over fiscal 2023. While muted by lower occupancy levels and increases in advertising, property
taxes, repairs and maintenance and wages, the increase was achieved from increased rates through our revenue
management systems and NOI from assets purchased throughout fiscal 2024 and 2023.
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 were not completed or we elected not to pursue. In fiscal 2024,
SVI has completed a total of $215.0 million in acquisitions, following closing $94.6 million in acquisitions in fiscal 2023 and
$241.1 million of acquisitions in fiscal 2022.
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 and changes in our business.
Stock based compensation
Relates to RSUs, DSUs and stock options issued to directors, officers and consultants under the Corporation’s stock option
plan. The expense is estimated at the date of issue using the Black-Scholes option pricing model as detailed in Note 9 of the
accompanying notes to our audited fiscal 2024 consolidated financial statements.
Interest
Interest expense increased due to an increase in the balance outstanding and average interest rates over the same period.
As at December 31, 2024, our debt was $1.7 billion compared to $1.4 billion at December 31, 2023, with a weighted average
interest rate of 4.78% at December 31, 2024 compared to 4.80% at December 31, 2023.
Interest accretion on convertible debentures
The convertible senior unsecured debentures are measured at the amortized cost, using the effective interest method until
extinguished upon conversion or at the instrument’s maturity date. The effective interest less the actual interest expense is
classified as interest accretion expense in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).
Depreciation and amortization
The increase in depreciation and amortization expense is primarily due to the acquisition of $215.0 million of assets in fiscal
2024.
Realized loss on disposal of assets
In fiscal 2024, the Corporation recognized a loss on the derecognition of assets, related to the replacement and capital
improvement of those assets at our stores.
Realized and unrealized (gain) loss on derivative financial instruments
The realized and unrealized (gain) loss on derivative financial instruments occurs as result of both the Interest Rate Swaps
and the Total Return Swaps which are held to hedge the Corporation’s debt; and RSUs, DSUs and stock options, respectively.
A realized gain or loss is recorded when the Interest Rate Swaps or Total Return Swaps are terminated. An unrealized gain
or loss is recorded as a result of the fluctuations in the market interest rates and the Corporation’s share price.
CANADA SELF STORAGE CENTRES
Annual Report
2024 70
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
FFO and AFFO are non-IFRS measures and 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 items, as shown below. 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" and relate to acquisitions pursued and completed). Interest expense on lease-up stores relates to interest
expensed, that would otherwise be capitalized, for non-stabilized stores (portion remaining to be leased up).
FFO for the three months ended December 31, 2024 was $21.6 million versus $20.9 million for the same period in 2023, a
3.7% increase or 5.0% increase per basic common share. AFFO for the three months ended December 31, 2024 was $23.3
million versus $22.8 million for the same period in 2023, a 2.1% increase or 3.4% increase per basic common share. For the
fiscal year, while we achieved $8.0 million or 4.1% in overall NOI growth, FFO decreased by $0.5 million or 0.7%, but an
increase of 0.4% per basic common share and AFFO increased by $2.8 million or 3.2% or 4.4% increase per basic common
share.
Our fiscal 2024 FFO and AFFO results were muted by higher interest expense of $6.7 million over fiscal 2023 and by the
operational and interest expenses related to lease-up stores acquired in fiscal 2024 ($127.0 million of our acquisitions) and a
nominal contribution from the 110,000 square feet of expanded and renovated space completed in fiscal 2024. As these
acquisitions and expansions stabilize, the Corporation expects to add an incremental annual $7.5 million of NOI within the
next 3 years resulting in an equivalent incremental growth of FFO and AFFO.
The FFO and AFFO for the three months and fiscal year ended December 31, 2024 and 2023 are:
2024
2023
2024
2023
$
%
$
%
Net income (loss)
(6,603,486)
$
(27,786,974)
$
21,183,488
$
76.2%
(30,223,132)
$
(1,700,158)
$
(28,522,974)
$
-1677.7%
Adjustments:
Stock based compensation
1,989,486
2,944,323
(954,837)
-32.4%
2,684,644
3,795,626
(1,110,982)
-29.3%
Interest accretion on convertible
debentures
1,129,877
4,195,644
(3,065,767)
-73.1%
4,469,820
4,195,644
274,176
6.5%
Realized (gain) loss on real estate
(1,256,871)
87,689
(1,344,560)
-1533.3%
2,675,845
(15,528,115)
18,203,960
-117.2%
Realized (gain) loss on derivative
financial instruments
-
(23,454)
23,454
-100.0%
-
(3,994,356)
3,994,356
-100.0%
Unrealized (gain) loss on derivative
financial instruments
4,215,334
18,458,800
(14,243,466)
-77.2%
6,330,251
1,450,089
4,880,162
336.5%
Deferred tax expense (recovery)
(4,080,153)
(2,292,414)
(1,787,739)
78.0%
(9,057,910)
(8,636,454)
(421,456)
4.9%
Depreciation and amortization
26,240,752
25,278,530
962,222
3.8%
102,682,412
100,518,182
2,164,230
2.2%
28,238,425
48,649,118
(20,410,693)
-42.0%
109,785,062
81,800,616
27,984,446
34.2%
FFO
1
21,634,939
$
20,862,144
$
772,795
$
3.7%
79,561,930
$
80,100,458
$
(538,528)
$
-0.7%
Adjustments:
Acquisition and integration costs
1,454,130
1,959,784
(505,654)
-25.8%
7,698,561
5,904,217
1,794,344
30.4%
Interest expensed on non-stabilized
stores
216,735
-
216,735
-
1,511,626
-
1,511,626
-
AFFO
1
23,305,804
$
22,821,928
$
483,876
$
2.1%
88,772,117
$
86,004,675
$
2,767,442
$
3.2%
1 Non-IFRS Measure.
FFO and AFFO Per Basic Common Share Outstanding
FFO
0.058
$
0.056
$
0.003
$
5.0%
0.213
$
0.213
$
0.001
$
0.4%
AFFO
0.063
$
0.061
$
0.002
$
3.4%
0.238
$
0.228
$
0.010
$
4.4%
Change
Three Months Ended December 31
Change
Fiscal
(unaudited)
(audited)
CANADA SELF STORAGE CENTRES
Annual Report
2024 71
Annualized Net Operating Income and Funds from Operations
The Corporation completed the purchase of 9 locations plus one records management and shredding business in fiscal 2024.
The revenues and operating expenses from each acquisition are reflected in the statements from the date of acquisition
forward for these stores. To understand a full year of operations with the acquired assets, utilizing historical data, the
following is an annualized NOI, FFO and AFFO (all non-IFRS measures) statement annualizing the revenues and expenses as if
the stores purchased in fiscal 2024, were purchased as of January 1, 2024 and owned for the entire 12-month period.
The results of this annualized statement show that NOI, FFO and AFFO would be higher by $5.5 million, $1.4 million and $1.5
million, respectively. NOI would have been $207.1 million, FFO would be $80.9 million and the AFFO would be $90.3 million.
The annualized results are muted by the operational and interest expenses related to lease-up stores acquired ($127.0 million
of our acquisitions completed in fiscal 2024) and only includes a nominal contribution from the 110,000 square feet of
expanded and renovated space. As these acquisitions and expansions stabilize, the Corporation expects to add an
incremental annual $7.5 million of NOI, FFO and AFFO.
For the Year Ended December 31, 2024
Actual
Annualized Results
Incremental
Notes
Storage revenue and related services
302,777,461
$
309,832,194
$
7,054,733
$
1
Management fees
1,927,744
1,927,744
-
304,705,205
311,759,938
7,054,733
Property operating costs
103,103,429
104,682,407
1,578,978
1
Net operating income
201,601,776
207,077,531
5,475,755
Adjustments:
Acquisition and integration costs
7,698,561
7,698,561
-
2
Selling, general and administrative
24,335,050
24,476,145
141,095
3
Interest
90,006,235
93,955,822
3,949,587
4
122,039,846
126,130,528
4,090,682
Funds from Operations
79,561,930
80,947,003
1,385,073
Adjustment:
Acquisition and integration costs
7,698,561
7,698,561
-
2
Interest expensed on non-stabilized stores
1,511,626
1,662,789
151,163
5
Adjusted Funds from Operations
88,772,117
$
90,308,353
$
1,536,236
$
Note 1 – the results from all stores acquired in fiscal 2024, have been adjusted as if the purchase occurred on January 1, 2024.
For revenues, we assumed achieved occupancies and rent per square foot were repeated from the period prior to acquisition.
Information regarding expenses incurred during 2024 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, 2024.
Note 5 – adjustment for interest expense on lease-up stores would generally be higher for the full year
CANADA SELF STORAGE CENTRES
Annual Report
2024 72
Segmented, Existing and New Self Storage and Portable Storage Results
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
2024
2023
2024
2023
$
%
$
%
Revenue
Existing Self Storage 1
65,666,794
$
63,294,123
$
2,372,671
$
3.7%
255,880,506
$
247,723,445
$
8,157,061
$
3.3%
New Self Storage 1
11,566,267
8,031,713
3,534,554
44.0%
37,001,291
28,393,433
8,607,858
30.3%
Total Self Storage
77,233,061
71,325,836
5,907,225
8.3%
292,881,797
276,116,878
16,764,919
6.1%
Portable Storage
2,508,722
2,424,468
84,254
3.5%
9,895,664
10,570,678
(675,014)
-6.4%
Management Fees
498,952
518,609
(19,657)
-3.8%
1,927,744
2,037,056
(109,312)
-5.4%
Combined
80,240,735
74,268,913
5,971,822
8.0%
304,705,205
288,724,612
15,980,593
5.5%
Operating Costs
Existing Self Storage
20,103,602
19,173,072
930,530
4.9%
77,951,419
74,724,650
3,226,769
4.3%
New Self Storage
4,901,727
3,442,126
1,459,601
42.4%
18,348,247
13,176,724
5,171,523
39.2%
Total Self Storage
25,005,329
22,615,198
2,390,131
10.6%
96,299,666
87,901,374
8,398,292
9.6%
Portable Storage
1,878,969
1,721,642
157,327
9.1%
6,803,763
7,230,494
(426,731)
-5.9%
Combined
26,884,298
24,336,840
2,547,458
10.5%
103,103,429
95,131,868
7,971,561
8.4%
Net Operating Income 1
Existing Self Storage
45,563,192
44,121,051
1,442,141
3.3%
177,929,087
172,998,795
4,930,292
2.8%
New Self Storage
6,664,540
4,589,587
2,074,953
45.2%
18,653,044
15,216,709
3,436,335
22.6%
Total Self Storage
52,227,732
48,710,638
3,517,094
7.2%
196,582,131
188,215,504
8,366,627
4.4%
Portable Storage
629,753
702,826
(73,073)
-10.4%
3,091,901
3,340,184
(248,283)
-7.4%
Management Fees
498,952
518,609
(19,657)
-3.8%
1,927,744
2,037,056
(109,312)
-5.4%
Combined
53,356,437
$
49,932,073
$
3,424,364
$
6.9%
201,601,776
$
193,592,744
$
8,009,032
$
4.1%
1 Non -IFRS Measure.
(audited)
(unaudited)
Change
Three Months Ended December 31
Fiscal
Change
Existing Self Storage
For the three months ended December 31, 2024, revenue and NOI increased by 3.7% and 3.3%, over the same prior year
period, resulting in a full year same store revenue and NOI growth of 3.3% and 2.8%. Despite lower period over period
occupancies from lower levels of Q2 and Q3 seasonal activities (mainly house sales, moving and home renovations), revenue
and NOI increases are a result of continued execution of our revenue management program. For operating costs, while we
continue to control costs through operational efficiencies, we experienced increases in advertising, property taxes, repairs
and maintenance and wages.
New Self Storage
Increases are a result of our 2024 and 2023 acquisitions, non-stabilized acquisitions and stores under renovations.
Portable Storage
Revenue and NOI are lower due to lower period over period occupancies resulting from a decrease in the level of activity in
housing sales, moving and housing renovations.
CANADA SELF STORAGE CENTRES
Annual Report
2024 73
Quarterly net operating income
The Corporation’s quarterly results are affected by the timing of acquisitions, both in the current year and prior year. The
Corporation 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.
Q4
Q3
Q2
Q1
Total
Q4
Q3
Q2
Q1
Total
NOI 1
Existing Self Storage
45,563
$
47,900
$
44,127
$
40,339
$
177,929
$
44,121
$
47,344
$
43,188
$
38,346
$
172,999
$
New Self Storage
6,665
4,628
4,387
2,973
18,653
4,590
3,669
3,684
3,274
15,217
Total Self Storage
52,228
52,529
48,513
43,313
196,582
48,711
51,013
46,871
41,621
188,216
Portable Storage
630
1,064
915
484
3,092
703
1,149
1,011
477
3,340
Management Fees
499
484
498
446
1,928
519
515
529
474
2,037
53,356
$
54,077
$
49,926
$
44,243
$
201,602
$
49,932
$
52,678
$
48,411
$
42,572
$
193,593
$
1 Non-IFRS Measure
Fiscal 2024 ('000)
Fiscal 2023 ('000)
Existing Self Storage
While muted by lower occupancies, the increase in Q4 2024 over Q4 2023 was driven from continued execution of our
revenue management program and controlling costs through operational efficiencies.
New Self Storage
SVI acquired 9 locations plus one records management and shredding business for $215.0 million and had 4 locations under
renovations. In fiscal 2023, SVI acquired 7 locations and 2 adjacent parcels of land for $94.6 million. The timing of these
acquisitions, renovations and their stage of stabilization affects the comparative results.
Portable Storage
Revenue and NOI are lower due to lower period over period occupancies resulting from a decrease in the level of activity in
housing sales and housing renovations.
CANADA SELF STORAGE CENTRES
Annual Report
2024 74
Summary of Quarterly Results (unaudited)
Period
Revenue
Net Income /
(Loss)
Net Income /
(Loss) per
share
Fully diluted
Net Income /
(Loss) per share
Total Assets
Total Liabilities
Dividends
2024 – Q4
$80,240,735
($6,603,486)
($0.018)
($0.018)
$2,233,968,260
$2,103,157,560
$1,075,911
2024 – Q3
$78,961,903
($6,973,213)
($0.019)
($0.018)
$2,231,393,303
$2,068,392,626
$1,088,517
2024 – Q2
$74,111,489
($8,688,351)
($0.023)
($0.023)
$2,176,620,967
$2,006,023,134
$1,083,058
2024 – Q1
$71,391,078
($7,958,082)
($0.021)
($0.021)
$2,042,871,899
$1,856,959,672
$1,081,531
Total 2024
$304,705,205
($30,223,132)
N/A
N/A
N/A
N/A
$4,329,017
2023 – Q4
$74,268,913
($27,786,974)
($0.074)
($0.072)
$2,044,217,956
$1,848,344,223
$1,076,487
2023 – Q3
$75,745,468
$16,378,937
$0.043
$0.043
$1,997,703,262
$1,783,807,524
$1,073,547
2023 – Q2
$71,292,759
$12,612,251
$0.033
$0.032
$1,988,295,493
$1,778,917,293
$1,075,022
2023 – Q1
$67,417,472
($2,904,372)
($0.008)
($0.007)
$2,019,426,187
$1,819,889,288
$1,069,922
Total 2023
$288,724,612
($1,700,158)
N/A
N/A
N/A
N/A
$4,294,978
2022 – Q4
$69,089,853
($23,265,493)
($0.062)
($0.062)
$2,020,752,160
$1,813,597,057
$1,064,875
2022 – Q3
$69,323,716
($2,120,375)
($0.006)
($0.006)
$2,014,223,967
$1,793,844,969
$1,059,674
2022 – Q2
$65,959,444
($7,278,364)
($0.019)
($0.019)
$2,019,833,429
$1,793,878,037
$1,055,547
2022 – Q1
$57,455,276
($8,577,725)
($0.023)
($0.023)
$1,874,780,768
$1,640,438,694
$1,050,674
Total 2022
$261,828,289
($41,241,957)
N/A
N/A
N/A
N/A
$4,230,770
2021 – Q4
$56,845,289
($13,005,460)
($0.035)
($0.035)
$1,836,156,209
$1,613,949,693
$1,034,371
2021 – Q3
$56,854,002
($4,286,770)
($0.012)
($0.012)
$1,710,707,686
$1,503,314,182
$1,021,120
2021 – Q2
$51,701,291
($7,172,789)
($0.019)
($0.019)
$1,693,800,047
$1,487,413,665
$1,012,517
2021 – Q1
$43,260,095
($11,400,073)
($0.031)
($0.031)
$1,610,798,998
$1,403,279,361
$1,002,868
Total 2021
$208,660,678
($35,865,092)
N/A
N/A
N/A
N/A
$4,070,876
2020 - Q4
$42,150,289
($9,987,848)
($0.027)
($0.027)
$1,587,379,939
$1,377,204,772
$991,452
2020 - Q3
$40,053,371
($6,276,846)
($0.017)
($0.017)
$1,354,801,560
$1,149,197,801
$978,240
2020 - Q2
$37,425,908
($8,651,142)
($0.024)
($0.024)
$1,369,097,150
$1,155,700,318
$973,985
2020 - Q1
$35,834,354
($8,366,386)
($0.023)
($0.023)
$1,371,022,824
$1,151,432,603
$966,317
Total 2020
$155,463,922
($33,282,222)
N/A
N/A
N/A
N/A
$3,909,994
2019 - Q4
$37,174,365
($11,563,878)
($0.032)
($0.032)
$1,392,865,962
$1,162,117,984
$961,654
2019 - Q3
$37,310,765
($9,399,776)
($0.026)
($0.026)
$1,377,237,690
$1,134,721,033
$958,230
2019 - Q2
$34,255,855
($16,310,988)
($0.045)
($0.045)
$1,385,491,977
$1,132,963,923
$952,321
2019 - Q1
$26,222,055
($8,843,827)
($0.025)
($0.025)
$1,044,914,091
$794,584,280
$930,288
Total 2019
$134,963,040
($46,118,469)
N/A
N/A
N/A
N/A
$3,802,493
2018 - Q4
$26,562,429
($843,810)
($0.002)
($0.002)
$1,022,791,417
$761,864,860
$925,235
2018 - Q3
$25,733,852
($6,355,654)
($0.018)
($0.018)
$990,262,630
$731,939,098
$920,981
2018 - Q2
$23,173,856
($9,158,368)
($0.026)
($0.026)
$959,256,102
$694,025,713
$920,562
2018 - Q1
$20,913,462
($7,793,463)
($0.022)
($0.022)
$922,656,903
$661,214,665
$889,786
Total 2018
$96,383,599
($24,151,295)
N/A
N/A
N/A
N/A
$3,656,564
2017 - Q4
$20,744,110
$15,343,505
$0.044
$0.044
$895,496,381
$627,421,264
$880,328
2017 - Q3
$18,453,960
($15,402,377)
($0.046)
($0.046)
$839,525,204
$585,777,091
$879,376
2017 - Q2
$12,557,306
($2,995,895)
($0.010)
($0.010)
$400,216,946
$237,005,503
$765,016
2017 - Q1
$10,133,138
($10,797,865)
($0.037)
($0.037)
$404,743,767
$238,025,850
$749,946
Total 2017
$61,888,514
($13,852,632)
N/A
N/A
N/A
N/A
$3,274,666
2016 - Q4
$8,900,182
($18,657,288)
($0.070)
($0.070)
$342,803,581
$187,115,587
$724,931
2016 - Q3
$7,307,070
($537,379)
($0.022)
($0.022)
$253,955,856
$131,931,530
$630,309
2016 - Q2
$6,320,322
($663,764)
($0.004)
($0.004)
$179,885,223
$118,343,352
$440,398
2016 - Q1
$5,296,970
($1,331,005)
($0.008)
($0.008)
$176,728,097
$114,010,014
-
Total 2016
$27,824,544
($21,189,436)
N/A
N/A
N/A
N/A
$1,795,638
2015 - Q4
$4,795,266
($2,702,281)
($0.026)
($0.026)
$171,486,477
$112,922,559
-
2015 - Q3
$3,137,527
($821,330)
($0.012)
($0.012)
$108,865,822
$85,594,955
-
2015 - Q2
$2,111,281
($677,127)
($0.012)
($0.012)
$54,449,748
$25,372,609
-
2015 - Q1
$1,096,513
($374,472)
($0.010)
($0.010)
$27,910,360
$25,033,929
-
Total 2015
$11,140,587
($4,575,210)
N/A
N/A
N/A
N/A
-
CANADA SELF STORAGE CENTRES
Annual Report
2024 75
WORKING CAPITAL, DEBT AND SHARE CAPITAL
Working Capital
Cash provided by operating activities was $100.9 million for fiscal 2024, compared to $85.8 million for fiscal 2023. Cash
provided by operating activities was higher mainly due to increased rates through our revenue management systems despite
lower occupancy levels throughout the year.
As at December 31, 2024, the Corporation had $16.3 million of cash compared to $13.9 million at December 31, 2023. The
Corporation expects its cash flow from operations to continue to increase as we continue to execute our operational plans
and realize the full benefit of recently purchased stores. In addition, the Corporation will manage its cash flows and borrow
against existing assets to minimize interest expense, fund acquisitions, capital improvement and its expansion plans and
repurchase the Corporation’s common shares.
Debt
As at December 31, 2024 and December 31, 2023, the Corporation held the following debt:
Rate
Weighted
Rate
Weighted
Range
Average
Balance
Range
Average
Balance
Mortgages
At amortized cost - Fixed
2.84% to 6.00 %
4.94%
554,199,300
2.84% to 9.20%
5.13%
306,666,120
Maturity: Mar 2025 to Sep 2031
Maturity: Mar 2025 to Dec 2029
At amortized cost - Variable
6.45%
3,161,703
7.47% to 8.20%
7.56%
26,490,427
Maturity: Jul 2027
Maturity: Jan 2024 to Jul 2024
At FVTPL - Variable
725,308,752
747,907,274
- Fixed via interest rate swap
1,335,567
(15,112,904)
4.86%
726,644,319
4.74%
732,794,370
Maturity: Jun 2025 to Jan 2031
Maturity: Apr 2024 to Jan 2031
4.90%
1,284,005,322
4.92%
1,065,950,917
Lines of Credit and Promissory Notes
At amortized cost - Fixed
4.50%
500,000
4.50%
500,000
Maturity: Mar 2025
Maturity: Mar 2025
At amortized cost - Variable
6.12%
92,145,131
7.73%
50,000,000
Maturity: Feb 2025 to Dec 2027
Maturity: Dec 2024 to Feb 2025
At FVTPL - Variable
300,895,063
308,871,737
- Fixed via interest rate swap
(895,063)
(8,871,737)
3.88%
300,000,000
3.88%
300,000,000
Maturity: Feb 2025
Maturity: Feb 2025
4.41%
392,645,131
4.43%
350,500,000
Deferred financing costs, net of accretion
(4,137,295)
(3,742,768)
4.78%
1,672,513,158
4.80%
1,412,708,149
December 31, 2024
December 31, 2023
CANADA SELF STORAGE CENTRES
Annual Report
2024 76
Reconciliation of Debt
December 31, 2024
December 31, 2023
Debt, beginning of period
1,412,708,149
$
1,526,719,769
$
Advances from debt
606,589,054
286,760,989
Repayment of debt
(346,389,518)
(401,685,562)
Change in fair value of debt measured at FVTPL
24,425,145
23,140,035
Change in fair value of interest rate swaps
(24,425,145)
(23,140,035)
Total cash flow from debt financing activities
260,199,536
(114,924,573)
Change in deferred financing costs
(394,527)
912,953
Debt, end of period
1,672,513,158
$
1,412,708,149
$
The following table reconciles the changes in cash flows from financing activities for the Corporation's debt:
The bank prime rate at December 31, 2024 was 5.45% (December 31, 2023 - 7.20%). The weighted average cost of debt at
December 31, 2024 is 4.78% (December 31, 2023 - 4.80%). The Corporation’s variable interest rate exposure is limited with
only 5.7% of debt being variable and the balance being fixed interest rate debt. The increase from the prior year and year
end is a result of the Corporation utilizing its lines of credit to fund acquisitions and capital improvement projects.
The weighted years to maturity, excluding lines of credit, at December 31, 2024 is 3.39 years (December 31, 2023 – 4.00
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, 2024 and December 31, 2023, 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 mortgages, lines of credit and promissory notes in each of the next five years are estimated as
follows:
Year 1
$
552,489,662 (includes lines of credit and promissory note of $393.0 million)
Year 2
$
53,876,014
Year 3
$
352,488,070
Year 4
$
402,109,019
Year 5
$
265,572,791
Thereafter
$
50,114,897
Of the repayments shown in Year 1, $29.4 million are required under our amortizing term debt mortgages, $130.5 million
relates to loans due in the upcoming twelve months that are expected to be refinanced, and $392.6 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, 2024 and December 31,
2023, the Corporation is in compliance with all covenants.
The Corporation terms out assets on our lines of credit when deemed appropriate, which includes determining whether 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, 2024 is:
CANADA SELF STORAGE CENTRES
Annual Report
2024 77
Year of Debt
Maturity
Mortgages Payable
Weighted
Average
Interest
Rate
Lines of Credit
Weighted
Average
Interest Rate
Total Debt
Weighted
Average
Interest
Rate
2025
130,548,101
$
5.16%
331,500,000
$
4.12%
462,048,101
$
4.41%
2026
25,026,336
3.68%
-
0.00%
25,026,336
3.68%
2027
341,028,058
5.06%
61,145,131
5.97%
402,173,189
5.20%
2028
429,578,280
4.84%
-
0.00%
429,578,280
4.84%
2029
300,265,489
4.90%
-
0.00%
300,265,489
4.90%
Thereafter
57,559,058
4.27%
-
0.00%
57,559,058
4.27%
1,284,005,322
$
4.90%
392,645,131
$
4.41%
1,676,650,453
$
4.78%
Deferred financing costs net of accretion
(4,137,295)
Balance
1,672,513,158
$
Contractual Mortgage Maturities and Interest Rates
The Corporation entered into interest rate swap contracts in order to fix the interest rate on $1.0 billion of debt at a weighted
average rate of 4.57%. On $477 million of this debt, the bank entered into interest rate swap cancellation agreements,
allowing them to cancel the original swap agreements between January 15, 2025 and April 22, 2027.
Debentures
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.
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
CANADA SELF STORAGE CENTRES
Annual Report
2024 78
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.
2023 Convertible Debentures
On January 9, 2023, $150 million of convertible senior unsecured debentures were issued at a price of $1,000 per debenture
with a term of sixty-six months, due March 31, 2028. These debentures bear a fixed interest rate of 5% per annum, payable
semi-annually in arrears on March 31 and September 30 of each year, commencing March 31, 2023. The intended use of the
net proceeds of the debentures is to fund potential future opportunities and for general corporate purposes.
On and after March 31, 2026 and prior to March 31, 2027, the debentures will be redeemable in whole or in part from time
to time by the Corporation at a redemption price equal to 125% 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 March 31, 2027 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 March 31, 2028, the debentures will be convertible into freely tradeable common shares of
the Corporation at the option of the holder at a conversion price of $8.65 per share.
The debentures were recorded as a financial instrument at a fair value of $150 million, net of deferred financing costs of $6.0
million, an equity component of $18.2 million, and a deferred tax liability of $4.7 million. The equity component of the
convertible debentures relates to the portion of the debentures' value that is attributed to the conversion option, which
allows the holder to convert the debentures into common shares of the Corporation.
The debentures are subsequently measured at amortized cost using the effective interest method over the life of the
debenture. The balance of the debentures is:
December 31, 2024
December 31, 2023
Opening balance
260,419,759
$
128,682,883
$
Additions during period
-
150,000,000
Issuance costs
-
(6,009,911)
Equity component of convertible
debentures
-
(18,245,003)
Accretion on hybrid debentures
1,130,998
113,099
Accretion on convertible debentures
4,469,820
4,195,644
Interest payable
14,965,475
1,871,047
Interest paid
(14,965,475)
-
Debentures repurchased
-
(188,000)
Ending balance
266,020,577
$
260,419,759
$
CANADA SELF STORAGE CENTRES
Annual Report
2024 79
Share Capital
The common shares issued are:
Number of Shares
Amount
Balance, December 31, 2022
378,017,360
424,954,374
$
Issued on acquisitions
681,601
4,250,000
Dividend reinvestment plan
252,145
1,441,790
Stock options redeemed
5,000
(5,038,500)
Common shares repurchased
(4,395,798)
(21,562,655)
Balance, December 31, 2023
374,560,308
404,045,009
Issued on acquisitions
640,000
4,000,000
Dividend reinvestment plan
374,619
1,810,124
Stock options redeemed
-
(108,510)
Common shares repurchased
(8,620,137)
(36,309,062)
Share buyback tax
-
(725,903)
Balance, December 31, 2024
366,954,790
372,711,658
$
Dividend Reinvestment Plan
Represents common shares issued under the Corporation’s dividend reinvestment plan (“DRIP") for holders of common
shares. 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 35,834,500 options were outstanding as at December 31, 2024 (December 31, 2023 – 36,587,000). Of the
outstanding amount, 35,834,500 options were exercisable (December 31, 2023 – 36,587,000). The details are as follows:
Exercise Price
Vesting Date
Expiry Date
December 31, 2024
December 31, 2023
0.41
$
Apr. 28, 2015
Apr. 28, 2025
1,125,500
1,125,500
0.50
$
Sep. 14, 2015
Sep. 14, 2025
1,305,000
1,305,000
1.36
$
Dec. 21, 2016
Dec. 21, 2026
2,420,000
2,620,000
1.78
$
Mar. 16, 2017
Mar. 16, 2027
2,645,000
2,645,000
2.52
$
May 4, 2018
May 4, 2028
2,655,000
2,660,000
2.90
$
May 28, 2019
May 28, 2029
5,296,500
5,376,500
3.98
$
Dec. 15, 2020
Dec. 15, 2030
5,433,000
5,515,500
6.31
$
Dec. 20, 2021
Dec. 20, 2031
6,595,000
6,767,500
5.94
$
Dec. 19, 2022
Dec. 19, 2032
6,793,500
6,972,000
5.23
$
Dec. 28, 2023
Dec. 28, 2033
1,566,000
1,600,000
Options exercisable and outstanding
35,834,500
36,587,000
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.
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 (“RSUs”), Deferred Share Units (“DSUs”) and Named Executive
Officer Restricted Share Units (“Neo RSUs”), 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 stock based compensation arrangements, may not exceed 10%
of the issued shares of the Corporation.
CANADA SELF STORAGE CENTRES
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2024 80
The RSUs and DSUs granted vest in equal annual amounts over three years. The Neo RSUs vest three years after the date of
grant. RSUs, DSUs and Neo RSUs are entitled to be credited with dividend equivalents in the form of additional RSUs, DSUs
and Neo RSUs, 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 stock 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, 2024, 4,621,428 TRS were outstanding at a value of ($2,759,070) (December 31, 2023 –
3,486,628 TRS were outstanding at a value of $2,141,355).
At December 31, 2024, 100% of the combined DSU and RSU exposures were economically hedged. Hedge accounting is not
applied for the DSU/RSU hedging program.
During the year ended December 31, 2024, the Corporation issued nil common shares at a value of $nil (December 31, 2023
– 160,176 common shares at a value of $1,007,507) under the Plan. A total of 979,878 common shares at a value of
$4,917,329 were outstanding at December 31, 2024 (December 31, 2023 – 980,328 common shares at a value of $4,923,332).
CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ARRANGEMENTS
Lease Liabilities
The Corporation leases buildings and land in British Columbia, Alberta, Manitoba, Ontario, Quebec, and the North West
Territories. The leases expire between 2026 and 2057, with the leases expiring in 2026 and 2027 having up to 5 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, 2024, the Corporation recognized $3,878,481 (December 31, 2023 - $3,668,569) in interest
expense related to its lease liabilities.
A reconciliation of the lease liabilities associated with self storage properties is as follows:
Lease payments in each of the next five years are estimated as follows:
Year 1
$
9,315,084
Year 2
$
9,391,416
Year 3
$
8,643,862
Year 4
$
8,317,926
Year 5
$
7,372,821
Thereafter
$ 92,196,722
December 31, 2024
December 31, 2023
Balance, beginning of period
99,715,973
$
80,518,572
$
Additions and reassessments
(2,966,335)
23,416,757
Cash payments
(8,485,753)
(7,887,925)
Interest
3,878,481
3,668,569
Balance, end of period
92,142,366
$
99,715,973
$
CANADA SELF STORAGE CENTRES
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2024 81
Off-Balance Sheet Arrangements
The Corporation is not party to any industry contracts or arrangements other than those disclosed in the financial statements.
RELATED PARTY TRANSACTIONS
The Corporation holds a Master Franchise Agreement 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 Iqbal Khan and Steven Scott 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, 2024, the Corporation paid $358,929
(December 31, 2023 - $382,400) for royalties and $1,704,770 (December 31, 2023 - $3,054,716) 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, 2024 was $57,625 (December 31, 2023 - $52,758) payable to CPFI.
The Corporation has management agreements with Access Self Storage Inc. and related companies (“Access Group”). These
companies are related to Iqbal Khan and Steven Scott 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, 2024, the Corporation received $4,665,871 (December 31, 2023 -
$6,017,053) in payments and reimbursements related to the management agreements.
During the year ended December 31, 2024, the Corporation also incurred $68,689,359 (December 31, 2023 - $50,583,697) 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, 2024 was $2,671,226 (December 31, 2023 - $2,790,800) payable
to the Access Group. Included in accounts receivable as at December 31, 2024 was $398,254 (December 31, 2023 -
$1,030,452) receivable from the Access Group.
Key management personnel are those persons having authority and responsibility for planning, directly and indirectly
directing, and controlling the activities of the Corporation. Key management personnel are defined as officers and Directors
of the Corporation.
The remuneration of key management personnel for employment services rendered are as follows:
December 31, 2024
December 31, 2023
Wages, management fees, bonuses and directors fees
1,210,478
$
1,324,495
$
Stock based compensation
702,988
1,047,580
1,913,466
$
2,372,075
$
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
StorageVault prides itself on having best-in-country ESG practices prioritizing long-term sustainable environmental and social
responsibilities consistent with our governance policies.
Environmental integrity, social responsibility, and a commitment to strong corporate governance are core values at
StorageVault. We remain focused on further reducing the already minimal environmental impact of our stores, enhancing
our engagement with colleagues and shareholders, supporting the over 100 communities in which we operate, and upholding
sound corporate governance practices.
Environmental
We believe that sustainability and success go hand in hand, and to thrive as a business, we must make a positive contribution
to our communities. As a community focused company, we recognize our responsibility to adopt sustainable operating
practices that minimize our environmental impact while enhancing the performance of our portfolio. Our goal is to create a
positive impact on the environment, our communities, shareholders and the broader self storage industry.
CANADA SELF STORAGE CENTRES
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2024 82
As part of our commitment to energy conservation, we strategically offer a range of square footage options, including both
non-climate controlled and temperature controlled spaces. For properties with temperature controlled storage, we regulate
temperatures to protect the integrity of stored items while minimizing energy consumption for heating and cooling. Non-
climate controlled areas have minimal environmental impact. This approach not only reduces our energy usage but also
lowers expenses, benefiting all stakeholders.
We actively seek forward thinking energy saving initiatives, including the use of geothermal heating systems, rooftop solar
panels, solar walls, motion activated lighting systems, and retrofitting older fixtures with modern, energy efficient
alternatives. Our solar program helps reduce our carbon footprint by generating renewable energy, while also delivering
financial returns. Water usage at our properties is kept to a minimum. Additionally, we source and sell packing supplies made
from recycled materials, and our digital rental process has significantly reduced paper consumption.
The self storage industry has one of the lowest environmental impacts in terms of energy consumption, water usage, and
waste production compared to other real estate asset classes. This is primarily due to the inherently low environmental
footprint of storage properties, as they experience minimal daily activity. With limited client traffic and activity, the storage
industry plays a key role in reducing carbon emissions and minimizing its overall environmental impact within our
communities.
Energy Reduction and Generation
•
Solar power generation through rooftop panels and solar walls.
•
Geothermal heating and cooling systems, which uses the earth as a source for heating and cooling. Geothermal heat
pumps are among the most energy efficient technologies for HVAC and water heating, using significantly less energy
than traditional systems.
•
Automated and self adjusting internal thermostat temperature controls.
•
Energy efficient HVAC systems and use of in floor radiant heating..
•
All new or replaced roofs are reflective “cool” roofs, designed to minimize energy consumption.
•
Over 90% of all properties feature motion sensor lighting, enabling on demand usage.
•
Over 80% of properties have been retrofitted with interior LED lighting, and over 60% with exterior LED lighting.
Green Building Design and Construction Practices
•
Energy efficient windows used in all new construction and expansion projects.
•
SolarWall systems or insulated metal panels are used in the construction of new and retrofitted buildings.
•
Standard exterior storage doors are being replaced with energy efficient doors.
•
Insulated foundation walls are installed to help maintain and keep the foundation slab warm.
•
All proposed acquisitions undergo environmental site assessments prior to closing.
Waste Reduction and Recycling
•
RecordXpress, our information and records management, paper shredding and recycling division, recycled over 10.2
million pounds of paper, saving 444,000 trees, diverting 99,000 cubic meters from landfills, and eliminating the need
for 198,000 barrels of oil that would otherwise be required to harvest raw materials.
•
Sale of moving and packaging supplies made from recycled materials.
•
Garbage and waste recycling programs at our stores and corporate offices.
•
Paperless and digital rental process that reduces paper usage through more efficient technology options.
•
Electronic recycling and e-waste reduction program for decommissioned computer equipment, which either donates
refurbished equipment to local charities or recycles equipment that cannot be repurposed.
Water Reduction and Conservation
•
One washroom per property, on average, due to low occupant levels and client activity at our locations.
•
Low flow and energy efficient plumbing systems and appliances.
•
Low water irrigation systems.
•
Landscaping featuring native and drought tolerant plant species.
•
Water run off controls to manage and minimize waste.
•
Stormwater retention systems to improve water management and reduce environmental impact.
CANADA SELF STORAGE CENTRES
Annual Report
2024 83
Social
As a Canadian company, our passion and commitment to supporting our colleagues, clients, communities, and country has
never been stronger. We are truly grateful for the opportunity to serve and support our fellow Canadians from coast to coast.
Supporting our Communities
StorageVault is committed to fostering healthy and strong communities through our pillars of support, including healthcare,
food security, the arts, education, and sports. From grassroots initiatives to gold medals, and from food banks to shelters, we
are passionate about our commitment to service and community. Our over 300 partnership initiatives span local, regional,
and national organizations, strategically supporting our communities and creating meaningful, lasting impact.
Our team of over 900 colleagues are grateful for the opportunity to service and support our clients in more than 100
communities across Canada, as well as for the strong partnerships we have built along the way.
Employee Engagement and Wellbeing
StorageVault is committed to cultivating a culture that prioritizes well-being, promotes healthy practices, and supports work
life balance. At the heart of our philosophy is a strong belief in developing and retaining talented individuals. We emphasize
active engagement from management at all levels, fostering meaningful connections between colleagues, clients, the board,
and other stakeholders. Our conviction is rooted in the belief that by prioritizing the well-being of our team, we support and
empower each other to extend that care to our clients, stores, and communities.
2024 Employee Engagement and Well-being Highlights:
•
Bonus opportunities – based on individual, store and corporate performance success.
•
Change Committee – self storage team members have established a volunteer committee to offer feedback on
presented topics or propose ideas that would benefit the organization. Some successful ideas that have been
implemented include those related to health and safety, communications and training.
•
Corporate events – we offer a variety of events including team building activities, Family Bowling, Pot-Luck Lunches
and Christmas gatherings.
•
Health and insurance benefits – we provide competitive health and insurance benefits, employee assistance
programs, paid time off, and leave of absence and bereavement support.
•
Incentive programs – we provide a variety of programs and contests, such as our Step Challenge, which encourages
our employees to meet step goals and promotes a healthier lifestyle.
•
Internal promotions – strong commitment to fostering merit based growth and advancement from within. Many of
our senior team members have been with our company for many years and have continuously grown and developed
throughout their tenure.
•
Wellness Wednesdays – a monthly webinar for all our colleagues with topics including finance, wellness, meditation,
exercise, mental health and hobbies.
•
Training and Career Development – dedicated Corporate Training team has created an industry leading program for
our New Hires. In addition to New Hire training, our team also hosts Monthly All-Store webinars and offer specialized
sessions for Store Managers (teaching leadership, customer service and wellness skills) as part of our Elite Academy
Sessions to support career development.
Governance
StorageVault’s Board and Management recognize the importance of equality and diversity and are committed to upholding
the highest standards of governance. This commitment is demonstrated through the following:
•
Diverse Board and Management team
o
66% of our Directors are independent
o
50% Board diversity (gender and race)
o
33% of our Directors are female
o
52% of our senior management are female
•
Annual Board review and approval of executive compensation
o
Performance targets set, approved and reviewed by Board to determine payouts
•
Annual election of Directors by shareholders at AGM
•
Independent Director led Audit, Acquisition and Governance, Nominating and Compensation Committees
•
Acquisition Committee Mandate to review, approve and recommend transactions to the Board
CANADA SELF STORAGE CENTRES
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2024 84
•
Regular review, update and reapproval by our Board of all Corporate Governance mandates, principles and policies:
o
Charter of the Audit Committee
o
Charter of the Board of Directors
o
Charter of the Governance, Nominating and Compensation Committee
o
Code of Business Conduct (mandatory for all employees)
o
Disclosure and Confidentiality Policy
o
Diversity Policy
o
Insider Trading and Reporting Policy
o
Majority Voting Policy
o
Whistleblower Policy
We take pride in the diverse composition of our team, which has naturally evolved within our organization. Additionally, we
are committed to fostering merit based growth and advancement from within. Many of our senior team members have
progressed through the ranks, not only spending many years with our company but also continuously growing and developing
throughout their tenure.
For the 4th time, StorageVault has been recognized by The Globe and Mail’s 2024 Report on Business, Women Lead Here.
This annual editorial benchmark identifies best-in-class gender diversity in corporate Canada. This award recognizes and is
representative of StorageVault’s equity and inclusion that is organic within our organization.
StorageVault is dedicated to supporting and ensuring stability to protect the long term interests of all its stakeholders through
disciplined corporate governance practices. In line with our commitment to transparency and strong governance, we make
all corporate policies, mandates, and charters publicly available on our website.
ACQUISITION COMMITTEE AND ACQUISITION COMMITTEE MANDATE
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.
ACCOUNTING POLICIES
The Corporation’s significant accounting policies are summarized in Note 3 to the December 31, 2024 annual audited
consolidated financial statements. There has been no change in significant accounting policies from the Corporation’s annual
audited financial statements from December 31, 2023. In addition, there has been no change in the Company’s financial
instrument risks.
CANADA SELF STORAGE CENTRES
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2024 85
Non-IFRS Financial Measures
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, realized gains or losses on real estate, realized and
unrealized gains or losses on interest rate swaps, interest accretion on convertible debentures, realized and
unrealized (gain) or loss on derivative financial instruments, stock based compensation expenses, and deferred
income taxes; and after adjustments for equity accounted entities and non-controlling interests. FFO should not be
viewed as an alternative to cash from operating activities, net income, or other measures calculated in accordance
with IFRS. The Corporation believes that FFO can be a beneficial measure, when combined with primary IFRS
measures, to assist in the evaluation of the Corporation’s ability to generate cash and evaluate its return on
investments as it excludes the effects of real estate amortization and gains and losses from the sale of real estate,
all of which are based on historical cost accounting and which may be of limited significance in evaluating current
performance.
iii.
Adjusted Funds from Operations (“AFFO”) – AFFO is defined as FFO plus acquisition and integration costs and interest
expense on lease-up stores. 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. Interest expense on lease-up stores relates to interest
expensed, that would be otherwise be capitalized, for non-stabilized stores (portion remaining to be leased up).
iv.
Existing Self Storage and New Self Storage performance – “Existing Self Storage” are stabilized stores that the
Corporation has owned or leased at least since the beginning of the previous fiscal year. “New Self Storage” are
non-stabilized stores that have not been owned or leased continuously since the beginning of the previous fiscal
year or stores that are under significant renovations. 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.
Recent and Future Accounting Pronouncements
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, 2024 annual audited
consolidated financial statements.
Disclosure Controls and Procedures
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, 2024, 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, 2024.
CANADA SELF STORAGE CENTRES
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2024 86
RISKS AND UNCERTAINTIES
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:
Real Estate Industry
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.
Liquidity Risk
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.
Refinancing Risk
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.
Interest Rate Risk
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.
Economic Conditions
While 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 while 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.
Contagious Diseases
Outbreaks of highly infectious or contagious diseases, such as the COVID-19 pandemic, 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.
Environmental Risk
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.
CANADA SELF STORAGE CENTRES
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2024 87
Credit Risk
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.
Other Self Storage Operators or Storage Alternatives
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.
Acquisition of Future Locations
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 storage locations would have
a tendency to increase the price for future acquisitions of storage locations and reduce the yields thereon.
Anticipated Results from New Acquisitions
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 increases
in property taxes following reassessments of newly acquired locations.
Increase in Operating Costs
Our operating margins can be negatively impacted from increases in operating costs such as property taxes, staffing costs,
insurance premiums, repairs and maintenance costs, utility costs and other costs due to various factors such as the need for
governments to raise funds, natural disasters, and energy prices.
Climate and Natural Disasters
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, wildfires, 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.
Litigation
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.
Use and Dependency on Information Technology Systems
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.
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StorageVault Canada Inc.
DIRECTORS
OFFICERS
Ben Harris
Steven Scott
Bedford, NY
Chief Executive Officer
Iqbal Khan
Iqbal Khan
Toronto, ON
Chief Financial Officer
Deborah Robinson
Toronto, ON
Steven Scott
Toronto, ON
Alan Simpson
Regina, SK
Mary Vitug
Toronto, ON
LEGAL COUNSEL
AUDITORS
DLA Piper (Canada) LLP
MNP LLP
Livingston Place
2000, 112 4th Ave S.W.
1000 – 250 2nd St S.W.
Calgary, AB T2P 3G4
Calgary, AB T2P 0C1
Telephone 403-263-3385
Telephone 403-296-4470
Facsimile 403-269-8450
Facsimile 403-296-4474
HEAD OFFICE
REGISTRAR & TRANSFER AGENT
StorageVault Canada Inc.
TSX Trust
100 Canadian Rd
300-5th Ave S.W., 10th Floor
Toronto, ON M1R 4Z5
Calgary, AB T2P 3C4
Telephone 1-877-622-0205
Telephone 403-218-2800
Email: ir@storagevaultcanada.com
Facsimile 403-265-0232
TSX LISTING:
SVI
Corporate Information
Website:
www.StorageVaultCanada.com
Email:
ir@StorageVaultCanada.com
Phone:
1-877-622-0205
Address:
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