Public Storage Canadian Properties Announces Third Quarter 2007 Operating Results and Distributions



    TORONTO, November 7 /CNW/ - Public Storage Canadian Properties (TSX:PUB)
today announced operating results for the third quarter ended September 30,
2007 and distributions to be paid on December 31, 2007.

    Dave Singelyn, President of Canadian Mini-Warehouse Properties Company,
the General Partner of the Partnership, stated that "the growth of 6.5% in
same store operations over the same period in the prior year indicates the
business remains strong. In addition, the Partnership has acquired or
developed a number of facilities over the past few quarters that will provide
additional growth to the Partnership in the future."

    Operating Results

    Net income of the Partnership was $1,677,000 or $0.23 per partnership
unit for the three months ended September 30, 2007 compared to $2,062,000 or
$0.29 per partnership unit for the same period in 2006. The decrease in net
income was due primarily to higher amortization expense and interest expense
associated with new facilities placed in service.

    Net income of the Partnership was $6,275,000 or $0.87 per partnership
unit for the nine months ended September 30, 2007 compared to $5,613,000 or
$0.95 per partnership unit for the same period in 2006. Net income reflects to
the recognition of a future tax asset of $1,060,000 due to the implications on
the Partnership's current tax status as a limited partnership arising from
amendments to the Income Tax Act (Canada) intended to eliminate certain tax
advantages presently enjoyed by certain investors in publicly-traded specified
investment flow-through trusts or partnerships, including the Partnership.
This future tax benefit relates to the Partnership's share of the temporary
difference between the accounting and tax basis of the Partnership's assets
expected to reverse after the date that the amendments are expected to apply
to the Partnership. The amendments are not expected to apply to the
Partnership until 2011 provided that the Partnership complies with the normal
growth guidelines issued by the Department of Finance. The decrease in net
income per unit was due primarily to an increase of 1,351,060 units in the
calculation of the number of weighted average units outstanding in connection
with the rights offering on June 2, 2006.

    Future earnings will reflect the impact of an additional 1,808,036 units
in the calculation of weighted average units outstanding in connection with
the rights offering on October 12, 2007 and continued dilution from the recent
developments as they become stabilized.

    Property Operations

    The Partnership owns, and derives substantially all of its income from,
24 self-storage facilities, of which fifteen facilities are located in
Ontario, five are located in British Columbia, three are located in Quebec and
one is located in 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). "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 September 30, 2007, the "Same Store"
facilities consist of sixteen facilities that have been owned and operated by
the Partnership since its inception and contain approximately 1,235,000 net
rentable square feet and 11,181 storage units.

    Effective October 1, 2007, the Partnership will remove one facility from
the pool of "Same Store" facilities. This facility has been identified for
redevelopment and will no longer provide meaningful comparative data for the
future periods presented. The new "Same Store" portfolio will consist of
fifteen facilities and contain approximately 1,179,000 net rentable square
feet and 10,667 storage units.

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

    
               Three months ended September  Nine months ended September
                            30,                           30,
               ---------------------------- ------------------------------
                  2007       2006    Change    2007        2006     Change
               ---------- ---------- ------ ----------- ----------- ------

    Rental
     income    $4,581,000 $4,370,000   4.8% $13,208,000 $12,766,000   3.5%
    Less:
     cost
     of
     operations 1,270,000  1,256,000   1.1%   3,866,000    3,863000   0.1%
    Less:
     management
     fees         275,000    262,000   5.0%     793,000     766,000   3.5%
               ---------- ----------        ----------- -----------
    Net
     operating
     income (1)$3,036,000 $2,852,000   6.5%  $8,549,000  $8,137,000   5.1%
               ---------- ----------        ----------- -----------

    Gross
     margin (2)     66.3%      65.3%              64.7%       63.7%
    Weighted
     average
     for
     period:
     Occupancy      89.4%      87.3%              87.9%       87.5%
     Realized
      annual
      rent per
      square
      foot (3)     $16.60     $16.21   2.4%      $16.23      $15.75   3.0%
    

    (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-generally accepted accounting principles ("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-GAAP financial measures do
not have any standardized meaning 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 and nine
months ended September 30, 2007 and 2006:

    
                                            Three months ended September
                                                          30,
                                            ------------------------------
                                               2007        2006     Change
                                            ----------- ----------- ------
    Calculation of FFO:
    ---------------------------------------
    Net income                              $1,677,000  $2,062,000
      Amortization of real estate            1,063,000     872,000
      Amortization of intangibles              366,000     316,000
      Less: income tax benefit                       -           -
      Less: gain on sale of land                     -           -
                                            ----------- -----------
    FFO                                     $3,106,000  $3,250,000  (4.4%)
                                            ----------- -----------
    Weighted average number of Units         7,232,145   7,232,145
    FFO per Unit                                 $0.43       $0.45  (4.4%)

    Calculation of EBITDA:
    ---------------------------------------
    Net income                              $1,677,000  $2,062,000
      Amortization of real estate            1,063,000     872,000
      Amortization of intangibles              366,000     316,000
      Interest expense and commitment fees     403,000     117,000
      Less: income tax benefit                       -           -
      Less: gain on sale of land                     -           -
      Less: interest income                    (12,000)    (49,000)
                                            ----------- -----------
    EBITDA                                  $3,497,000  $3,318,000   5.4%
                                            ----------- -----------
    Weighted average number of Units         7,232,145   7,232,145
    EBITDA per Unit                              $0.48       $0.46   4.3%

                                             Nine months ended September
                                                          30,
                                            ------------------------------
                                               2007        2006     Change
                                            ----------- ----------- ------
    Calculation of FFO:
    ---------------------------------------
    Net income                              $6,275,000  $5,613,000
      Amortization of real estate            2,892,000   2,253,000
      Amortization of intangibles            1,031,000     316,000
      Less: income tax benefit              (1,060,000)          -
      Less: gain on sale of land                     -    (137,000)
                                            ----------- -----------
    FFO                                     $9,138,000  $8,045,000  13.6%
                                            ----------- -----------
    Weighted average number of Units         7,232,145   5,881,085
    FFO per Unit                                 $1.26       $1.37  (8.0%)

    Calculation of EBITDA:
    ---------------------------------------
    Net income                              $6,275,000  $5,613,000
      Amortization of real estate            2,892,000   2,253,000
      Amortization of intangibles            1,031,000     316,000
      Interest expense and commitment fees     638,000     537,000
      Less: income tax benefit              (1,060,000)          -
      Less: gain on sale of land                     -    (137,000)
      Less: interest income                    (57,000)    (72,000)
                                            ----------- -----------
    EBITDA                                  $9,719,000  $8,510,000  14.2%
                                            ----------- -----------
    Weighted average number of Units         7,232,145   5,881,085
    EBITDA per Unit                              $1.34       $1.45  (7.6%)
    

    Distributions

    The board of directors of the general partner today declared a
distribution of $0.45 per partnership unit payable on December 31, 2007 to
unitholders of record at the close of business on December 14, 2007.

    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 web site is
www.publicstoragecanada.com.

    
                      PUBLIC STORAGE CANADIAN PROPERTIES
                           SELECTED FINANCIAL DATA

                              Three Months Ended     Nine Months Ended
                                 September 30,          September 30,
                             --------------------- -----------------------
                                2007       2006       2007        2006
                             ---------- ---------- ----------- -----------

    Revenue:
    Rental income            $5,955,000 $5,473,000 $16,960,000 $14,567,000
    Interest and other
     income                      12,000     49,000      57,000      72,000
    Gain on sale of land              -          -           -     137,000
                             ---------- ---------- ----------- -----------
                              5,967,000  5,522,000  17,017,000  14,776,000
                             ---------- ---------- ----------- -----------

    Costs and expenses:
    Cost of operations        2,002,000  1,724,000   5,776,000   4,849,000
    Management fees paid to
     an affiliate               358,000    327,000   1,019,000     873,000
    Amortization of real
     estate facilities        1,063,000    872,000   2,892,000   2,253,000
    Amortization of
     intangible assets          366,000    316,000   1,031,000     316,000
    Interest and commitment
     fees                       403,000    117,000     638,000     537,000
    Administrative               98,000    104,000     446,000     335,000
                             ---------- ---------- ----------- -----------
                              4,290,000  3,460,000  11,802,000   9,163,000

    Income before taxes       1,677,000  2,062,000   5,215,000   5,613,000
                             ---------- ---------- ----------- -----------

    Income tax benefit                -          -   1,060,000           -
                             ---------- ---------- ----------- -----------

    Net income               $1,677,000 $2,062,000 $ 6,275,000 $ 5,613,000
                             ---------- ---------- ----------- -----------

    Net income per
     partnership unit        $     0.23 $     0.29 $      0.87 $      0.95
    Distributions per
     partnership unit        $     0.45 $     0.45 $      1.35 $      1.35

    Weighted average number
     of partnership units
     outstanding              7,232,145  7,232,145   7,232,145   5,881,085
    

    
                                                As at           As at
                                            September 30,   December 31,
                                                 2007            2006
                                            -------------- ---------------
    Balance sheet data:
    Cash and cash equivalents                 $    280,000     $   415,000
    Amounts due under credit facility           31,000,000       3,800,000
    Mortgage note payable                        5,540,000       5,623,000
    Total assets                               104,338,000      79,242,000
    Partners' equity                            64,466,000      67,953,000
    Partnership units outstanding at end of
     period                                      7,232,145       7,232,145
    




For further information:

For further information: Public Storage Canadian Properties Vincent
Chan, 866-PS-CANADA or 866-772-2623

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PUBLIC STORAGE CANADIAN PROPERTIES

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