PUBLIC STORAGE CANADIAN PROPERTIES
TSX : PUB

PUBLIC STORAGE CANADIAN PROPERTIES

July 27, 2005 17:14 ET

Public Storage Canadian Properties Announces Second Quarter 2005 Operating Results and Distributions

TORONTO--(CCNMatthews - Jul 27, 2005) -

Public Storage Canadian Properties (TSX:PUB) today announced operating results for the second quarter ended June 30, 2005 and distributions to be paid on September 30, 2005.

Operating Results

Net income was $1,889,000 or $0.39 per partnership unit for the three months ended June 30, 2005 compared to $1,531,000 or $0.32 per partnership unit for the same period in 2004.

Net income was $3,541,000 or $0.73 per partnership unit for the six months ended June 30, 2005 compared to $3,218,000 or $0.67 per partnership unit for the same period in 2004.

Property Operations

In March 2005, the Partnership purchased an existing facility in Calgary, Alberta. In April 2005, the Partnership opened a facility in Cloverdale, British Columbia which has been under development since August 2004. These two facilities are the first additions to the Partnership's portfolio of properties since the Partnership and its predecessors were formed.

The Partnership derives substantially all of its income from the ownership of eighteen self-storage facilities. Thirteen facilities are located in the province of Ontario, four facilities are located in the province of British Columbia and one facility is located in the province of Alberta.

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). These original sixteen facilities have been owned and operated at a mature, stabilized occupancy level throughout the periods presented by the Partnership.

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



Three months ended June 30,
------------------------------
2005 2004 Change
----------- ----------- ------
Rental income $4,123,000 $3,708,000 11.2%
Less: cost of operations 1,115,000 1,340,000 -16.8%
Less: management fees 247,000 222,000 11.3%
----------- -----------
Net operating income (1) $2,761,000 $2,146,000 28.7%
----------- -----------
----------- -----------
Gross margin (2) 67.0% 57.9%
Weighted average for period:
Occupancy 88.9% 89.6%
Realized annual rent per square
foot (3) $15.02 $13.41 12.0%


Six months ended June 30,
------------------------------
2005 2004 Change
----------- ----------- ------
Rental income $7,991,000 $7,317,000 9.2%
Less: cost of operations 2,489,000 2,511,000 -0.9%
Less: management fees 479,000 439,000 9.1%
----------- -----------
Net operating income (1) $5,023,000 $4,367,000 15.0%
----------- -----------
----------- -----------
Gross margin (2) 62.9% 59.7%
Weighted average for period:
Occupancy 87.9% 86.0%
Realized annual rent per square
foot (3) $14.73 $13.77 7.0%


(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 plus depreciation and amortization. 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 and six months ended June 30, 2005 and 2004:



Three months ended June 30,
------------------------------
2005 2004 Change
----------- ----------- ------

Net income $1,889,000 $1,531,000
Amortization 584,000 479,000
----------- -----------
FFO $2,473,000 $2,010,000 23.0%
----------- -----------
----------- -----------

Weighted average number of partnership
units 4,821,430 4,821,430
FFO per partnership unit $0.51 $0.42 21.4%

Net income $1,889,000 $1,531,000
Amortization 584,000 479,000
Interest expense 121,000 -
Less: interest income (2,000) (3,000)
----------- -----------
EBITDA $2,592,000 $2,007,000 29.1%
----------- -----------
----------- -----------
Weighted average number of partnership
units 4,821,430 4,821,430
EBITDA per partnership unit $0.54 $0.42 28.6%


Six months ended June 30,
------------------------------
2005 2004 Change
----------- ----------- ------

Net income $3,541,000 $3,218,000
Amortization 1,079,000 927,000
----------- -----------
FFO $4,620,000 $4,145,000 11.5%
----------- -----------
----------- -----------
Weighted average number of partnership
units 4,821,430 4,821,430
FFO per partnership unit $0.96 $0.86 11.6%

Net income $3,541,000 $3,218,000
Amortization 1,079,000 927,000
Interest expense 131,000 -
Less: interest income (9,000) (9,000)
----------- -----------
EBITDA $4,742,000 $4,136,000 14.7%
----------- -----------
----------- -----------
Weighted average number of partnership
units 4,182,430 4,182,430
EBITDA per partnership unit $0.98 $0.86 14.0%



Distributions

The board of directors of the general partner today declared a distribution of $0.45 per partnership unit payable on September 30, 2005 to unitholders of record at the close of business on September 15, 2005.

Credit Facility Increase

The Partnership increased its existing $28 million credit facility to $36 million and extended the maturity date to June 30, 2006. The credit facility will be used for general corporate purposes and to provide short term financing for property acquisitions and developments.

Partnership Information

Public Storage Canadian Properties is a publicly held limited partnership that has invested in mini-warehouse storage facilities. More information about the Partnership is available on the Internet. The Partnership's web site is www.publicstoragecanada.com.



PUBLIC STORAGE CANADIAN PROPERTIES
SELECTED FINANCIAL DATA


Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------

Revenue:
Rental income $4,207,000 $3,708,000 $8,082,000 $7,317,000
Interest income 2,000 3,000 9,000 9,000
----------- ----------- ----------- -----------
4,209,000 3,711,000 8,091,000 7,326,000
----------- ----------- ----------- -----------

Costs and expenses:
Cost of operations 1,239,000 1,340,000 2,612,000 2,511,000
Management fees paid to
an affiliate 251,000 222,000 484,000 439,000
Amortization 584,000 479,000 1,079,000 927,000
Administrative 125,000 139,000 244,000 231,000
Interest expense 121,000 - 131,000 -
----------- ----------- ----------- -----------
2,320,000 2,180,000 4,550,000 4,108,000
----------- ----------- ----------- -----------

Net income $1,889,000 $1,531,000 $3,541,000 $3,218,000
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income per
partnership unit $0.39 $0.32 $0.73 $0.67
Distributions per
partnership unit $0.45 $0.45 $0.90 $0.90

Weighted average number
of partnership units
outstanding 4,821,430 4,821,430 4,821,430 4,821,430


As at As at
June 30, 2005 December 31, 2004
------------- -----------------
Balance sheet data:
Cash and cash equivalents $312,000 $275,000
Borrowings from credit facility 20,400,000 8,200,000
Total assets 47,464,000 36,228,000
Partners' equity 26,014,000 26,812,000
Partnership units outstanding at end
of period 4,821,430 4,821,430



Contact Information

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