Topic: How To Invest

Q: Pat: I would appreciate your opinion on StorageVault Canada. It seems like it would make a reasonable investment.

A: StorageVault Canada, $2.59, symbol SVI on the TSX Venture Exchange, (Shares outstanding: 300.0 million; Market cap: $774.0 million;, owns and operates storage locations in B.C. (10), Alberta (6), Saskatchewan (7), Manitoba (6), Ontario (20) and Quebec (7).

Its 56 facilities hold 26,449 units that make up 3.0 million square feet of rentable space.

In 2016, StorageVault’s revenue rose 149.8%, to $27.8 million from $11.1 million in 2015. That was mostly due to acquisitions. Cash flow jumped 369%, to $7.5 million from $1.6 million. Cash flow per share was up 100%, to $0.04 in 2016 from $0.02 in 2015, due to more shares outstanding from its acquisitions.

In the three months ended March 31, 2017, the company’s revenue rose 91.3%, to $10.1 million from $5.3 million. Cash flow jumped to $2.8 million from $1.1 million. Cash flow per share was unchanged at $0.01, due to more shares outstanding from StorageVault’s recent acquisitions.

The company continues to grow rapidly by acquisition. It doubled its asset base in 2016 with purchases totalling $178.4 million ($150.7 million of that was spent near the end of the year).

StorageVault recently announced the $396.6 million acquisition of privately held Sentinel Storage. Sentinel has 24 stores, across B.C., Alberta, Manitoba, Ontario, Quebec and Nova Scotia.

StorageVault expects to make between $50 to $90 million of additional, smaller acquisitions in 2017.

The company’s growth by acquisition—including the Sentinel purchase—adds considerable risk. However, StorageVault’s properties are spread across Canada, which helps to offset that risk. The company also continues to report rising cash flow.

The stock currently yields 0.4%.

We don’t recommend StorageVault Canada, but it’s is okay to hold for aggressive real estate investors who want to invest in storage-space rental.


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