PUBLIC STORAGE CANADIAN PROPERTIES
TSX : PUB

PUBLIC STORAGE CANADIAN PROPERTIES

November 02, 2005 17:36 ET

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

TORONTO, ONTARIO--(CCNMatthews - Nov. 2 2005) - Public Storage Canadian Properties (TSX:PUB) today announced operating results for the third quarter ended September 30, 2005 and distributions to be paid on December 30, 2005.

Operating Results

Net income of the Partnership was $1,947,000 or $0.40 per partnership unit for the three months ended September 30, 2005 compared to $1,843,000 or $0.38 per partnership unit for the same period in 2004. Net income of the Partnership was $5,488,000 or $1.14 per partnership unit for the nine months ended September 30, 2005 compared to $5,061,000 or $1.05 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 Ontario, four are located in British Columbia and one is located in Alberta. In addition, the Partnership owns a parcel of land in Vancouver, British Columbia for development into a self-storage facility and an existing warehouse facility in Montreal, Quebec that is being converted into a self-storage facility.

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 September 30,
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2005 2004 Change
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Rental income $ 4,276,000 $ 3,999,000 6.9%
Less: cost of operations 1,269,000 1,364,000 -7.0%
Less: management fees 257,000 240,000 7.1%
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Net operating income (1) $ 2,750,000 $ 2,395,000 14.8%
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Gross margin (2) 64.3% 59.9%
Weighted average for period:
Occupancy 90.0% 93.0%
Realized annual rent per
square foot (3) $15.39 $13.93 10.5%



Nine months ended September 30,
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2005 2004 Change
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Rental income $ 12,267,000 $ 11,316,000 8.4%
Less: cost of operations 3,758,000 3,875,000 -3.0%
Less: management fees 736,000 679,000 8.4%
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Net operating income (1) $ 7,773,000 $ 6,762,000 15.0%
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Gross margin (2) 63.4% 59.8%
Weighted average for period:
Occupancy 88.6% 88.4%
Realized annual rent per
square foot (3) $14.96 $13.83 8.2%


(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. Management, investors and analysts consider FFO and EBITDA to be good measures of the performance of real estate companies because they evaluate the cash generating ability of an entity (in the case of FFO) or its assets (in the case of EBITDA), without taking into account the impact of amortization (and interest, in the case of EBITDA), which may vary significantly between real estate companies based on when particular assets were acquired and financed. 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. EBITDA is utilized in determining the debt capacity of the Partnership. 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 nine months ended September 30, 2005 and 2004:



Three months ended September 30,
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2005 2004 Change
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Net income $ 1,947,000 $ 1,843,000
Amortization 608,000 493,000
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FFO $ 2,555,000 $ 2,336,000 9.4%
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Weighted average number of
partnership units 4,821,430 4,821,430
FFO per partnership unit $0.53 $0.48 10.4%

Net income $ 1,947,000 $ 1,843,000
Amortization 608,000 493,000
Interest expense 152,000 -
Less: interest income (8,000) (15,000)
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EBITDA $ 2,699,000 $ 2,321,000 16.3%
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Weighted average number of
partnership units 4,821,430 4,821,430
EBITDA per partnership unit $0.56 $0.48 16.7%



Nine months ended September 30,
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2005 2004 Change
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Net income $ 5,488,000 $ 5,061,000
Amortization 1,687,000 1,420,000
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FFO $ 7,175,000 $ 6,481,000 10.7%
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Weighted average number of
partnership units 4,821,430 4,821,430
FFO per partnership unit $1.49 $1.34 11.2%

Net income $ 5,488,000 $ 5,061,000
Amortization 1,687,000 1,420,000
Interest expense 283,000 -
Less: interest income (17,000) (24,000)
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EBITDA $ 7,441,000 $ 6,457,000 15.2%
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Weighted average number of
partnership units 4,821,430 4,821,430
EBITDA per partnership unit $1.54 $1.34 14.9%


Distributions

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

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 Nine Months Ended
September 30, September 30,
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2005 2004 2005 2004

Revenue:
Rental income $ 4,470,000 $ 3,999,000 $ 12,552,000 $ 11,316,000
Interest
income 8,000 15,000 17,000 24,000
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4,478,000 4,014,000 12,569,000 11,340,000
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Costs and
expenses:
Cost of
operations 1,424,000 1,364,000 4,036,000 3,875,000
Management
fees paid to
an affiliate 269,000 240,000 753,000 679,000
Amortization 608,000 493,000 1,687,000 1,420,000
Administrative 78,000 74,000 322,000 305,000
Interest expense 152,000 - 283,000 -
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2,531,000 2,171,000 7,081,000 6,279,000
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Net income $ 1,947,000 $ 1,843,000 $ 5,488,000 $ 5,061,000
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Net income per
partnership unit $ 0.40 $ 0.38 $ 1.14 $ 1.05
Distributions
per partnership
unit $ 0.45 $ 0.45 $ 1.35 $ 1.35

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



As at As at
September 30, 2005 December 31, 2004
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Balance sheet data:
Cash and cash equivalents $ 406,000 $ 275,000
Borrowings from credit facility 27,200,000 8,200,000
Total assets 54,096,000 36,228,000
Partners' equity 25,791,000 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 or (866) 772-2623