InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

February 20, 2008 07:45 ET

InStorage REIT Announces TSX Listing, Unit Consolidation and Unitholder Rights Plan

TORONTO, ONTARIO—(Marketwire – Feb. 20, 2008) –

Attention Business Editors:

InStorage Real Estate Investment Trust ("InStorage" or the "REIT")(TSX:IS.UN) announced today the listing of its units on the Toronto Stock Exchange ("TSX"), the consolidation of its outstanding units and the implementation of a Unitholder Rights Plan.

TSX Listing

InStorage has graduated to the TSX from the TSX Venture Exchange. Effective as of the opening of trading today, the units of InStorage will be listed on the TSX and will continue to trade under the symbol "IS.UN".

Unit Consolidation

Immediately prior to listing on the TSX, the units of InStorage will be consolidated on an eight-to-one (8:1) basis, as approved by the unitholders of the REIT at the June 7, 2007 annual and special meeting of the unitholders. The limited partnership units of InStorage Limited Partnership will be consolidated on the same basis as and concurrently with the units of the REIT.

Holders of outstanding units of the REIT and InStorage LP will receive a letter of transmittal for use to deliver their pre-consolidation units to Computershare Investor Services Inc., the transfer agent of the units. Pre-consolidation units will be exchanged for new post-consolidation units representing the corresponding number of units resulting from the consolidation. As approved by the unitholders, fractional units will not be issued in connection with the consolidation and post-consolidation units will be rounded to the nearest whole number of units.

There are currently 185,766,110 units of the REIT outstanding. On a post-consolidated basis, there will be approximately 23,220,764 units of
InStorage outstanding.

"We are pleased to make the move to the TSX and complete our unit consolidation, both of which represent important milestones for us," stated T. James Tadeson, Chief Executive Officer. "We anticipate that the result will be more visibility and enhanced liquidity for our investors. Achieving these objectives were important to the continued execution of our business plan. We remain focused on revenue growth, generating portfolio efficiencies, and building our platform as the largest owner and operator of self-storage facilities in Canada."

Unitholder Rights Plan

The REIT also announced today the implementation of a Unitholder Rights Plan. The Plan is designed to ensure the fair treatment of InStorage's unitholders in any transaction involving a change of control of the REIT and will provide the Board of Trustees and InStorage's unitholders with adequate time to evaluate any unsolicited take-over bid and, if appropriate, to seek out alternatives to maximize unitholder value.

The Rights Plan is not being implemented in response to any specific proposal to acquire control of InStorage and the REIT is not aware of any such proposal.

The Rights Plan takes effect immediately and will continue in effect until the annual meeting of unitholders expected to be held in or about June 2008. It is the REIT's intention to seek unitholder approval to extend the Rights Plan at the annual meeting for a three-year period thereafter.

The Rights Plan is similar to rights plans adopted by other Canadian income trusts and corporations. Until the occurrence of certain specific events, the rights will trade with the units of the REIT and be represented by any certificates for such units. The rights become exercisable only when a person, including any party related to it or acting jointly with it, acquires or announces its intention to acquire 20 percent or more of the outstanding units of InStorage without complying with the Permitted Bid provisions of the Rights Plan. Should a non-permitted bid be launched, each right would entitle each holder of voting units (other than the acquiring person and persons related to it or acting jointly with it) to purchase additional units of the REIT at a 50 percent discount to the market price at the time.

The Rights Plan is not intended to prevent take-over bids but rather to ensure their proper evaluation by the market. Under the Rights Plan, a Permitted Bid is a bid made to all unitholders for all of their units on identical terms and conditions that is open for at least 60 days. If at the end of 60 days at least 50 percent of the outstanding units, other than those owned by the offeror and certain related parties, have been tendered, the offeror may take up and pay for the units but must extend the bid for a further 10 days to allow all other unitholders to tender.

InStorage REIT

InStorage 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 52 self-storage properties located in Alberta, Saskatchewan, Ontario and Quebec.

Additional information concerning InStorage 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.

Contact Information

  • InStorage Real Estate Investment Trust T. James Tadeson Chief Executive Officer (416) 867-9705
    or
    InStorage Real Estate Investment Trust Alay Shah Chief Financial Officer (416) 867-9740 Website: www.instoragereit.ca