"Our Q1 2026 results reflect the strength and consistency of our storage platform, with same store revenue increasing by 6.6% and NOI by 5.4%, driven by a focus on delivering an elite customer experience, disciplined pricing and increased occupancy. AFFO grew by 8.0% per share, underscoring continued growth in cash flow generation. These results highlight the resilience of our portfolio and our commitment to delivering sustainable, long term value through operational execution and value adding acquisitions."
2026 First Quarter ResultsFor the first quarter of 2026, revenue increased to $85.2 million from $76.3 million in Q1 2025 and NOI, a non-IFRS measure, grew to $52.5 million from $47.7 million. Our cash flow from operations increased year over year and when combined with our financing and investing activities resulted in a cash balance of $13.8 million at the end of the quarter. The Q1 2026 net loss of $13.5 million (net loss of $11.4 million for Q1 2025) is impacted by the following non-cash and non-recurring items, $28.1 million of depreciation and amortization, $0.2 million in stock based compensation, $1.2 million of interest accretion on convertible debentures, $1.6 million of realized and unrealized loss on derivative financial instruments, and deferred tax recovery of $1.3 million.
Revenue and NOI from Existing Self Storage stores increased by 6.6% and 5.4%, compared to the same period last year. Funds from operations ("FFO"), a non-IFRS measure, were $16.3 million for Q1 2026 compared to $15.4 million in Q1 2025, a 6.1% increase year over year. Adjusted funds from operations ("AFFO"), a non-IFRS measure, were $18.3 million for Q1 2026 compared to $17.0 million in Q1 2025, a 7.7% increase. On a per basic common share basis, FFO increased by 6.4% and AFFO increased by 8.0%.
For a reconciliation of the above NOI, FFO, and AFFO amounts to IFRS, please see "Non-IFRS Financial Measures" and the reconciliation tables below, and the Corporation's Management's Discussion & Analysis for the three months ended March 31, 2026 filed on SEDAR+ at www.sedarplus.ca.
Increased Dividend StorageVault is increasing its Q2 2026 dividend by 0.5% to $0.003021 per common share.
Our StrategyStorageVault is focused on owning and operating storage in the top markets in Canada. Our goal is to have multiple stores in each market, with complementary portable storage units, integrated storage and logistics, and records management storage services. This multi-platform approach enables us to leverage scale, brand recognition and operational efficiencies to maximize the value potential of our spaces. Growth is driven by acquisitions, organic performance improvements, targeted expansions to meet pent up demand and continued development of portable storage, records management and FlexSpace Logistics.
Further InformationFor comprehensive disclosure of StorageVault's performance for the three months ended March 31, 2026 and its financial position as at such date, please see StorageVault's Unaudited Interim Consolidated Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2026 filed on SEDAR+ at www.sedarplus.ca.
Non-IFRS Financial MeasuresManagement uses both IFRS and non-IFRS Measures to assess the financial and operating performance of the Corporation's operations. These non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The non-IFRS Measures referenced in this news release include the following:
Net Operating Income ("NOI"), NOI is defined as storage and related services revenue less operating costs. NOI does not include interest expense or income, depreciation and amortization, selling, general and administrative costs, acquisition and integration costs, stock based compensation costs, realized and unrealized gains or losses on real estate, realized and unrealized gains or losses on derivative financial instruments or taxes. NOI assists management in assessing profitability and valuation from principal business activities.
Funds from Operations ("FFO"), FFO is defined as net income or loss plus depreciation and amortization, realized gains or losses on real estate, realized and unrealized gains or losses on interest rate swaps, interest accretion on convertible debentures, realized and unrealized gains or losses on derivative financial instruments, stock based compensation expenses, and deferred income taxes; and after adjustments for equity accounted entities and non-controlling interests. FFO should not be viewed as an alternative to cash from operating activities, net income, or other measures calculated in accordance with IFRS. The Corporation believes that FFO can be a beneficial measure, when combined with primary IFRS measures, to assist in the evaluation of the Corporation's ability to generate cash and evaluate its return on investments as it excludes the effects of real estate amortization and gains and losses from the sale of real estate, all of which are based on historical cost accounting and which may be of limited significance in evaluating current performance.
Adjusted Funds from Operations ("AFFO"), AFFO is defined as FFO plus acquisition and integration costs. Acquisition and integration costs are one time in nature to the specific assets purchased in the current period or pending and are expensed under IFRS.
Existing Self Storage, means stabilized, both physically and economically, stores that StorageVault has owned or leased at least since the beginning of the previous fiscal year. Existing Self Storage is also referred to as "same store", and commencing in fiscal 2026, Existing Self Storage represents 11,545,239 square feet or 210 stores.
NOI, FFO, AFFO and Existing Self Storage, should not be viewed as an alternative to, in isolation from, or superior to, net income or cash flow from operations, or results from StorageVault's comprehensive operations, respectively, or other measures calculated in accordance with IFRS. NOI, FFO and AFFO should not be interpreted as an indicator of cash generated from operating activities and is not indicative of cash available to fund operating expenditures, or for the payment of cash distributions. Existing Self Storage should not be considered a measure of StorageVault's comprehensive operations. NOI, FFO, AFFO and Existing Self Storage are simply additional measures of operating performance which highlight trends in StorageVault's core business that may not otherwise be apparent when relying solely on IFRS financial measures. StorageVault's management also uses these non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare operating budgets. In addition, the Corporation's definitions of NOI, FFO, AFFO and Existing Self Storage may differ from that of other issuers.
Non-IFRS Financial Measures Reconciliation
The following table reconciles Net Income (Loss) and Net Operating Income:
(unaudited)
(unaudited)
Three Months Ended March 31
Fiscal
Change
Change
2026
2025
$
%
2026
2025
$
%
Storage revenue and related services
$
84,685,368
$
75,822,832
$
8,862,536
11.7
%
$
84,685,368
$
75,822,832
$
8,862,536
11.7
%
Management fees
532,070
448,471
83,599
18.6
%
532,070
448,471
83,599
18.6
%
85,217,438
76,271,303
8,946,135
11.7
%
85,217,438
76,271,303
8,946,135
11.7
%
Operating costs
32,730,286
28,615,810
4,114,476
14.4
%
32,730,286
28,615,810
4,114,476
14.4
%
Net operating income1
52,487,152
47,655,493
4,831,659
10.1
%
52,487,152
47,655,493
4,831,659
10.1
%
Less:
Acquisition and integration costs
1,978,626
1,612,851
365,775
22.7
%
1,978,626
1,612,851
365,775
22.7
%
Selling, general and administrative
6,867,995
6,087,577
780,418
12.8
%
6,867,995
6,087,577
780,418
12.8
%
Interest
27,350,185
24,597,948
2,752,237
11.2
%
27,350,185
24,597,948
2,752,237
11.2
%
Stock based compensation
240,300
83,959
156,341
186.2
%
240,300
83,959
156,341
186.2
%
Realized (gain) loss on real estate
(9,489
)
39,827
(49,316
)
-123.8
%
(9,489
)
39,827
(49,316
)
-123.8
%
Realized and unrealized (gain) loss on derivative financial instruments
1,564,576
969,752
594,824
61.3
%
1,564,576
969,752
594,824
61.3
%
Interest accretion on convertible debentures
1,167,984
1,129,896
38,088
3.4
%
1,167,984
1,129,896
38,088
3.4
%
Depreciation and amortization
28,145,247
26,653,029
