InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

May 03, 2007 08:00 ET

InStorage REIT Announces Internalization of Management

TORONTO, ONTARIO—-(Marketwire – May 3, 2008) -

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today that, together with its operating subsidiaries, it will internalize the asset, business and property management functions currently provided by Carttera Management Inc. (the "Manager") in accordance with a management agreement dated August 4, 2006 (the "Management Agreement").

Pursuant to the terms of the Management Agreement, the Manager provides the REIT with officers and employees, as well as advisory, asset and property management and administrative services. The Management Agreement required the Trustees of the REIT to review the benefits of internalizing its management upon reaching a gross book value of assets of $200,000,000 or more. Having recently reached and exceeded this important milestone, the REIT's Trustees have determined that it would be beneficial to the REIT and its unitholders to terminate the Management Agreement and internalize management of the REIT and its operating subsidiaries.

In accordance with the provisions of the Management Agreement, the internalization of management is therefore scheduled to be completed on September 1, 2007, without payment by the REIT of any termination fee other than the reimbursement of expenses occasioned to the Manager as a result of the termination. Moreover, in connection with the internalization, the REIT expects to enter into employment agreements with its existing officers who are currently employed by the Manager.

"We anticipate substantial savings to the REIT going forward from the internalization of management and are pleased to be able to deliver on our promise of effecting this change when it became beneficial to the unitholders to do so" said T. James Tadeson, CEO.

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 indirectly owns 37 self-storage properties located in Ontario, Saskatchewan and Alberta, and is presently the second largest owner/operator of self-storage facilities in Canada.

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

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 intention of the REIT and its operating subsidiaries to terminate the Management Agreement; to internalize the asset, business and property management functions mentioned above; to enter into employment agreements with the officers of the REIT who are currently employed by the Manager; and the expected savings to be realized by the REIT as a result of the internalization of management. 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 ability and desire of the parties to the transaction to comply with the terms of the Management Agreement; the ability and desire of the REIT or its operating subsidiaries to enter into employment agreements with the officers of the REIT who are currently employed by the Manager; the anticipated and unanticipated costs associated with the management internalization and the ongoing operations of the REIT and its underlying business. 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