PUBLIC STORAGE CANADIAN PROPERTIES
TSX : PUB

PUBLIC STORAGE CANADIAN PROPERTIES

May 06, 2009 13:00 ET

Public Storage Canadian Properties Announces First Quarter 2009 Operating Results and Distributions

TORONTO, ONTARIO--(Marketwire - May 6, 2009) - Public Storage Canadian Properties (TSX:PUB) today announced operating results for the first quarter ended March 31, 2009 and distributions to be paid on June 30, 2009.

Operating Results

Net income of the Partnership was $1,530,000 or $0.17 per partnership unit (“Unit”) for the three months ended March 31, 2009 compared to $1,580,000 or $0.17 per Unit for the same period in 2008.

Property Operations

The Partnership owns, and derives substantially all of its income from, 25 self-storage facilities, of which fifteen are located in Ontario, five are located in British Columbia, four are located in Quebec and one is located in Alberta. In addition, the Partnership owns parcels of land in Oakville, Ontario, Orleans, Ontario, Richmond Hill, Ontario, Dorval, Quebec and LaSalle, Quebec for development into new self-storage facilities.

In order to evaluate the performance of the Partnership's portfolio, management analyzes the operating performance of a stabilized group of self-storage facilities (herein referred to as “Same Store” facilities). Management considers the operating performance of the “Same Store” facilities to be a more useful measure of the overall operating performance of the Partnership's portfolio to analyze trends and provide meaningful comparisons. “Same Store” facilities are facilities that have been owned and operated at a mature, stabilized occupancy level since January 1, of the earliest period presented. Management considers a facility to be stabilized after it has been opened for at least three years. As at March 31, 2009, the “Same Store” facilities consist of 18 facilities that have been owned and operated by the Partnership since its inception and contain approximately 1,366,000 net rentable square feet and 12,678 storage units.

The following table summarizes the pre-amortization operating results of the Partnership's “Same Store” facilities.

 
Three months ended March 31,
 
2009
2008
Change
    
Rental income$ 4,627,000$ 4,759,000(2.8%)
  Less: cost of operations1,576,0001,560,0001.0%
  Less: management fees
278,000
285,000
(2.9%)
Net operating income (1)
$ 2,773,000
$ 2,914,000
(4.8%)
    
Gross margin (2)59.2%61.2% 
Weighted average for period:   
  Occupancy83.1%84.6% 
    Realized annual rent per square foot (3)
$16.33

$16.49

(1.0%)
  End of period occupancy86.0%86.0% 


(1) Net operating income (“NOI”) is equal to rental income less cost of operations and management fees paid to an affiliate before amortization. This non-GAAP financial measure does not have any standardized meanings prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers.
(2) Gross margin is computed by dividing property net operating income by rental income.
(3) Realized rent per square foot represents the actual revenue earned per occupied square foot. Management believes this is a more relevant measure than posted or scheduled rates as posted rates can be discounted through promotions.

Funds from Operations (“FFO”) and Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

FFO and EBITDA are supplementary performance measures for real estate companies used by investors and analysts. These non-generally accepted accounting principles (“GAAP”) financial measures do not have any standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Many investors and analysts consider FFO and EBITDA to be measures of the performance of real estate companies. FFO is equal to net income computed in accordance with GAAP before depreciation, amortization and gains or losses on sale of real estate assets. EBITDA is equal to earnings before interest income, interest expense, taxes, depreciation and amortization. FFO and EBITDA do not take into consideration scheduled principal payments on debt, capital improvements, distributions or other obligations of the Partnership. Accordingly, FFO and EBITDA are not substitutes for the Partnership's cash flow or net income as a measure of the Partnership's liquidity or operating performance or ability to pay distributions.

The following table calculates FFO and EBITDA for the three months ended March 31, 2009 and 2008:

 
Three months ended March 31,
 
2009
2008
Change
    
Net income  $ 1,530,000  $ 1,580,000 
    Plus: amortization of real estate facilities1,134,0001,049,000 
    Plus: amortization of intangible assets-50,000 
    Less: future income tax benefit
(22,000)
(71,000)
 
FFO
  $ 2,642,000
  $ 2,608,000
1.3%
  Weighted average number of Units9,040,1819,040,181 
  FFO per Unit$0.29$0.290.0%
    
Net income  $ 1,530,000  $ 1,580,000 
    Plus: amortization of real estate facilities1,134,0001,049,000 
    Plus: amortization of intangible assets-50,000 
    Plus: interest and commitment fees 144,000143,000 
    Less: interest and other income(8,000)(34,000) 
    Less: future income tax benefit
(22,000)
(71,000)
 
EBITDA
  $ 2,778,000
  $ 2,717,000
2.2%
  Weighted average number of Units
9,040,181

9,040,181
 
  EBITDA per Unit$0.31$0.303.3%

Distributions

The board of directors of the general partner today declared a distribution of $0.225 per Unit payable on June 30, 2009 to unitholders of record at the close of business on June 15, 2009.

Partnership Information

Public Storage Canadian Properties is a publicly held limited partnership that invests in self-storage facilities. More information about the Partnership is available on the Internet. The Partnership's main website is www.publicstoragecanada.com. The Partnership's investor website is www.pscinvestor.com.


PUBLIC STORAGE CANADIAN PROPERTIES
SELECTED FINANCIAL DATA

 
Three Months Ended
March 31,
 
2009
 
2008
    
Revenue   
Rental income$  5,893,000 $   5,750,000
Interest and other income
8,000
 
34,000
 
5,901,000
 
5,784,000
    
Costs and expenses   
Cost of operations2,638,000 2,536,000
Management fees paid to an affiliate354,000 345,000
Amortization of real estate facilities1,134,000 1,049,000
Amortization of intangible assets- 50,000
Interest and commitment fees144,000 143,000
Administrative
123,000
 
152,000
 
4,393,000
 
4,275,000
    
Income before income taxes1,508,000 1,509,000
    
Future income tax benefit
22,000
 
71,000
    
Net income
$   1,530,000
 
$   1,580,000
    
    
Net income per Unit$         0.17 $         0.17
Declared distributions per Unit$       0.225 $         0.45
    
Weighted average number of Units outstanding9,040,181 9,040,181
    
    
 
As at
March 31, 2009
 
As at
December 31, 2008
Balance sheet data:   
Cash and cash equivalents$     973,000 $   2,390,000
Debt25,378,000 24,371,000
Total assets118,623,000 119,504,000
Partners' equity89,063,000 90,046,000
Units outstanding at end of period9,040,181 9,040,181
    
    

Contact Information

  • Public Storage Canadian Properties
    Vincent Chan
    (866) PS-CANADA or (866) 772-2623