InStorage Real Estate Investment Trust
TSX : IS.UN

InStorage Real Estate Investment Trust

July 14, 2008 07:45 ET

InStorage REIT Reports Improved Occupancy in Second Quarter

TORONTO, ONTARIO--(Marketwire - July 14, 2008) - InStorage Real Estate Investment Trust (the "REIT") (TSX:IS.UN) announced today that occupancies have improved significantly to 80.6% as at June 30, 2008, up from 75.4% as at March 31, 2008. Each province in the REIT's portfolio showed a marked increase, with Alberta rising to 82.0% from 79.0%, Saskatchewan rising to 86.4% from 81.9%, Ontario rising to 76.6% from 72.2%, and Quebec up to 90.8% from 80.6%.

"The numerous marketing initiatives we have implemented, combined with the anticipated seasonal increases in our business, have resulted in a marked improvement in our occupancies across the entire portfolio through the end of the second quarter of 2008," said T. James Tadeson, Chief Executive Officer, "As we have stated in the past, the second and third quarters of the year are seasonally the strongest in the self-storage business, and we look for further improvement in the current quarter. While our weighted average occupancy across Canada was 76% for the first quarter, increasing to 78% in the second quarter, most of this gain occurred in June, giving us very positive momentum into July and the rest of our strong leasing season."

"The completion of the implementation of our Revenue Management System is making a significant contribution to our enhanced performance. With this new solution, we are able to more effectively price each available storage unit based on local market conditions and occupancy levels, ensuring we are maximizing revenues at all of our locations across the country." Mr. Tadeson continued.

"We are making good progress implementing our Branding project, and the results look great. We are approximately 40% complete and expect to be within our $5 million budget and on time to have all of our properties completed by the end of the year.

In an effort to more fully capitalize on our increased call volumes, we will be internalizing our call centre before year end. This move will enhance our efficiency and sales impact in handling customer inquiries with our own knowledgeable and service oriented staff members.

The results of these initiatives, in addition to the upcoming implementation of our strategic alliance with Discount Car and Truck Rentals will positively contribute to our growth going forward," Mr. Tadeson concluded.

The REIT also announced today that Mr. Alain Gingras has been promoted to the newly created position of Vice President, Sales and Marketing. This appointment reinforces the REIT's commitment to its sales orientation, and will allow greater focus by all members of its senior management team.

The REIT will announce its financial results for the three and six months ended June 30, 2008 on the morning of August 14, 2008 with a conference call to follow that day at 2:00 p.m. ET.

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 52 owned and 12 managed self-storage properties located in British Columbia, Alberta, Saskatchewan, Ontario and Quebec. The REIT's Units (Symbol IS.UN) are traded on the Toronto Stock Exchange.

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.

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 statements with respect to further growth of the REIT. 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 availability of acquisition or development opportunities in the future; 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