InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

June 15, 2007 08:00 ET

InStorage REIT Announces $21.2 Million Acquisition of Four Self-Storage Properties

TORONTO, ONTARIO—-(Marketwire – June 15, 2007) -

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today that it has agreed to purchase a portfolio of four high quality self-storage properties located in Quebec. The properties, which operate under the name "Entreposage Domestik", are located at 255 Shannon Street, Montreal, 3900 Sir Wilfrid Laurier Boulevard, Longueuil, 2383 Galvani Street, Quebec City and 555 Clemenceau Street, Quebec City. Collectively, the properties account for total gross rentable area of approximately 226,000 square feet and house approximately 2,350 storage units.

The aggregate purchase price for the properties is approximately $21.2 million which represents a capitalization rate of over 8% based on the in-place net operating income of these properties.

"We are very pleased to announce this acquisition which will be accretive to the unitholders of the REIT," said T. James Tadeson, Chief Executive Officer. "These properties will significantly increase our presence in Quebec and position us for further growth in that market."

The acquisition remains subject to customary closing conditions under the acquisition agreement. There can be no assurance that the closing conditions will be satisfied or that the acquisition will be completed. If the conditions under the acquisition agreement are fulfilled, the acquisition is scheduled to close on June 28, 2007.

InStorage Real Estate Investment Trust

The REIT is an unincorporated open-ended real estate investment trust that invests primarily in self-storage properties and ancillary businesses throughout Canada. The REIT is the largest owner/operator of self storage facilities in Canada and is the country's leading self-storage industry consolidator, with a current portfolio of 46 self-storage properties located in Alberta, Saskatchewan, Ontario and Quebec.

Additional information concerning the REIT may be obtained on the REIT's website, www.instoragereit.ca, and on the SEDAR website at www.sedar.com, under the REIT's profile.

Non-GAAP Measures

Net operating income ("NOI") is widely used as a supplemental measure of a Canadian real estate investment trust's performance and is not defined under Canadian generally accepted accounting principles ("GAAP"). The REIT uses this measure to assess the operating performance of its income-producing properties. NOI should not be considered as an alternative to net income or other measures that have been calculated in accordance with GAAP and may not be comparable to similar measures presented by other issuers. Readers are directed to the REIT's Management's Discussion and Analysis for the three months ended December 31, 2006 and for the period from January 12, 2006 to December 31, 2006 for a description of this Non-GAAP measure.

Forward-Looking Information

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include: the capitalization rate and the expected net operating income of the properties; the accretive nature of the acquisition; and the intention or ability of the REIT to complete the acquisition mentioned above, as disclosed or at all. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the assumption that marginal increases in rental rates and occupancy levels will be achieved over current circumstances at the subject properties; an assumed amount of expenses in connection with the completion of the acquisition and the ongoing maintenance and operation of the subject properties; the ability and desire of the REIT and its subsidiaries to obtain necessary financing and satisfy conditions under the acquisition agreement; the ability and desire of the parties to the acquisition to comply with the terms of the acquisition agreement; the level of activity in the underlying self-storage business of the REIT, the self-storage industry and in the economy generally; consumer interest in the services and products of the REIT's subsidiaries; competition; and anticipated and unanticipated costs. While the REIT anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this press release. Although the REIT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT. Additional factors are noted under "Risk Factors" in the REIT's short form prospectus dated March 28, 2007, a copy of which may be obtained on the SEDAR website at www.sedar.com.

Contact Information

  • InStorage Real Estate Investment Trust
    T. James Tadeson
    Chief Executive Officer
    (416) 867-9705
    Website: www.instoragereit.ca