StorageVault Reports 2025 Second Quarter Results and Increases Dividend

Executive Summary

• StorageVault Canada Inc. reported its Q2 2025 financial results, showing strong organic growth with same-store revenue increasing 6.6% and Net Operating Income (NOI) growing 5.2% year-over-year.
• The company announced a dividend increase for Q3 2025, raising the payout by 0.5% to $0.002976 per common share.
• Adjusted Funds from Operations (AFFO) per common share increased by 5.4% to $0.0628, driven by sustained organic performance despite broader sector headwinds.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $83.5 million (up from $74.1 million in Q2 2024).
  • Net Operating Income (NOI): $55.2 million (up from $49.9 million in Q2 2024).
  • Net Loss: $6.2 million (compared to $8.7 million in Q2 2024), impacted by $27.3 million in depreciation and amortization.
  • Cash Balance: Increased to $21.5 million at quarter-end.
• Same-Store Metrics:
  • Same-store revenue growth: 6.6%.
  • Same-store NOI growth: 5.2%.
• Funds from Operations (FFO) & AFFO:
  • FFO: $20.3 million (up 3.4% from $19.7 million in Q2 2024); $0.0557 per share (up 5.8%).
  • AFFO: $22.9 million (up 3.0% from $22.3 million in Q2 2024); $0.0628 per share (up 5.4%).
• Year-to-Date (Six Months Ended June 30, 2025):
  • Revenue: $159.8 million (up 9.8% from $145.5 million).
  • NOI: $102.9 million (up 9.2% from $94.2 million).
  • FFO: $35.7 million (up 2.6%); $0.098 per share (up 4.9%).
  • AFFO: $39.9 million (up 2.6%); $0.109 per share (up 4.9%).
• Dividend Update:
  • Q3 2025 dividend increased by 0.5% to $0.002976 per common share.
• Operational Outlook & Strategy:
  • The company expects to add an incremental annual $8.3 million of NOI within the next 3 years as lease-up stores acquired in fiscal 2024 ($127.0 million of $215.0 million total acquisitions) and expanded/renovated spaces stabilize.
  • Management plans to remain disciplined in asset purchases and opportunistic under the Normal Course Issuer Bid (NCIB) if shares remain undervalued.
  • Focus remains on cost control while maximizing revenues, NOI, and free cash flow.
• Non-Cash/Non-Recurring Items (Q2 2025):
  • Depreciation and amortization: $27.3 million.
  • Stock-based compensation: $0.1 million.
  • Interest accretion on convertible debentures: $1.1 million.
  • Deferred tax recovery: $2.0 million.

Notable Quotes

• “We are pleased to report strong second quarter results, with same store revenue growth of 6.6% and NOI growth of 5.2%, leading to a 5.4% increase in AFFO per common share. Our sustained organic performance, despite broader sector headwinds, demonstrates the strength and resilience of our platform.” — Iqbal Khan, Chief Financial Officer