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



    TORONTO, August 1 /CNW/ - Public Storage Canadian Properties (TSX:PUB)
today announced operating results for the second quarter ended June 30, 2007
and distributions to be paid on September 28, 2007.

    Operating Results

    Net income of the Partnership was $2,966,000 or $0.41 per partnership
unit for the three months ended June 30, 2007 compared to $2,023,000 or $0.36
per partnership unit for the same period in 2006. Net income of the
Partnership was $4,598,000 or $0.64 per partnership unit for the six months
ended June 30, 2007 compared to $3,551,000 or $0.68 per partnership unit for
the same period in 2006. The increases in net income were due to the
recognition of a future tax asset of $1,060,000 due to the tax implications of
Bill C-52 on the Partnership's current tax status as a limited 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 new tax legislation is expected to
apply. The new tax legislation is not expected to apply to the Partnership
until 2011 as Bill C-52 provides for a transition period for publicly traded
entities that existed prior to November 1, 2006. In addition, the new
legislation will not apply to an entity that qualifies for the real estate
investment trust ("REIT") exemption. The Partnership is evaluating
alternatives to permit it to qualify for the REIT exemption prior to 2011.

    Property Operations

    The Partnership derives substantially all of its income from the
ownership of 24 self-storage facilities across Canada. 15 facilities are
located in Ontario, 5 are located in British Columbia, 3 are located in Quebec
and 1 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 June 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.

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

    
                 Three months ended June 30,   Six months ended June 30,
                 ---------------------------- ----------------------------
                    2007       2006    Change    2007       2006    Change
                 ---------- ---------- ------ ---------- ---------- ------

    Rental
     Income      $4,410,000 $4,338,000   1.7% $8,627,000 $8,396,000   2.8%
    Less: cost
     of
     operations   1,278,000  1,276,000   0.2%  2,596,000  2,607,000 (0.4%)
    Less:
     management
     fees           265,000    261,000   1.5%    518,000    504,000   2.8%
                 ---------- ----------        ---------- ----------
    Net
     operating
     income (1)  $2,867,000 $2,801,000   2.4% $5,513,000 $5,285,000   4.3%
                 ---------- ----------        ---------- ----------

    Gross margin
     (2)              65.0%      64.6%             63.9%      62.9%
    Weighted
     average for
     period:
     Occupancy        88.7%      88.2%             87.1%      87.6%
     Realized
      annual
      rent per
      square
      foot (3)       $16.11     $15.93   1.1%     $16.04     $15.52   3.4%
    

    ____________________

    
    (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 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 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 six
months ended June 30, 2007 and 2006:

    
                                            Three months ended June 30,
                                          --------------------------------
                                              2007        2006     Change
                                          ------------ ----------- -------
    Calculation of FFO:
    -------------------------------------
    Net income                            $ 2,966,000  $2,023,000
     Amortization of real estate              917,000     732,000
     Amortization of intangibles              349,000           -
     Less: income tax benefit              (1,060,000)          -
     Less: gain on sale of land                     -    (137,000)
                                          ------------ -----------
    FFO                                   $ 3,172,000  $2,618,000   21.2%
                                          ------------ -----------
    Weighted average number of Units
                                            7,232,145   5,563,188
    FFO per Unit                          $      0.44  $     0.47   (6.4%)

    Calculation of EBITDA:
    -------------------------------------
    Net income                            $ 2,966,000  $2,023,000
     Amortization of real estate              917,000     732,000
     Amortization of intangibles              349,000           -
     Interest and commitment fees             116,000     208,000
     Less: income tax benefit              (1,060,000)          -
     Less: gain on sale of land                     -    (137,000)
     Less: interest income                    (18,000)    (17,000)
                                          ------------ -----------
    EBITDA                                $ 3,270,000  $2,809,000   16.4%
                                          ------------ -----------
    Weighted average number of Units
                                            7,232,145   5,563,188
    EBITDA per Unit                       $      0.45  $     0.50  (10.0%)

                                             Six months ended June 30,
                                          --------------------------------
                                              2007        2006     Change
                                          ------------ ----------- -------
    Calculation of FFO:
    -------------------------------------
    Net income                            $ 4,598,000  $3,551,000
     Amortization of real estate            1,829,000   1,381,000
     Amortization of intangibles              665,000           -
     Less: income tax benefit              (1,060,000)          -
     Less: gain on sale of land                     -    (137,000)
                                          ------------ -----------
    FFO                                   $ 6,032,000  $4,795,000   25.8%
                                          ------------ -----------
    Weighted average number of Units
                                            7,232,145   5,194,358
    FFO per Unit                          $      0.83  $     0.92   (9.8%)

    Calculation of EBITDA:
    -------------------------------------
    Net income                            $ 4,598,000  $3,551,000
     Amortization of real estate            1,829,000   1,381,000
     Amortization of intangibles              665,000           -
     Interest and commitment fees             235,000     420,000
     Less: income tax benefit              (1,060,000)          -
     Less: gain on sale of land                     -    (137,000)
     Less: interest income                    (45,000)    (23,000)
                                          ------------ -----------
    EBITDA                                $ 6,222,000  $5,192,000   19.8%
                                          ------------ -----------
    Weighted average number of Units
                                            7,232,145   4,821,430
    EBITDA per Unit                       $      0.86  $     1.00  (14.0%)
    

    Distributions

    The board of directors of the general partner today declared a
distribution of $0.45 per partnership unit payable on September 28, 2007 to
unitholders of record at the close of business on September 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        Six Months Ended
                                 June 30,                 June 30,
                        -------------------------- -----------------------
                             2007         2006         2007        2006
                        ------------- ------------ ----------- -----------

    Revenue:
    Rental income       $   5,691,000 $  4,772,000 $11,005,000 $ 9,094,000
    Interest and other
     income                    18,000       17,000      45,000      23,000
    Gain on sale of
     land                           -      137,000           -     137,000
                        ------------- ------------ ----------- -----------
                            5,709,000    4,926,000  11,050,000   9,254,000
                        ------------- ------------ ----------- -----------

    Costs and expenses:
    Cost of operations      1,871,000    1,577,000   3,774,000   3,125,000
    Management fees
     paid to an
     affiliate                342,000      287,000     661,000     546,000
    Amortization of
     real estate
     facilities               917,000      732,000   1,829,000   1,381,000
    Amortization of
     intangible assets        349,000            -     665,000           -
    Interest and
     commitment fees          116,000      208,000     235,000     420,000
    Administrative            208,000       99,000     348,000     231,000
                        ------------- ------------ ----------- -----------
                            3,803,000    2,903,000   7,512,000   5,703,000

    Income before taxes     1,906,000    2,023,000   3,538,000   3,551,000
                        ------------- ------------ ----------- -----------

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

    Net income          $   2,966,000 $  2,023,000 $ 4,598,000 $ 3,551,000
                        ------------- ------------ ----------- -----------

    Net income per
     partnership unit   $        0.41 $       0.36 $      0.64 $      0.68
    Distributions per
     partnership unit   $        0.45 $       0.45 $      0.90 $      0.90

    Weighted average
     number of
     partnership units
     outstanding            7,232,145    5,563,188   7,232,145   5,194,358



                            As at        As at
                        June 30, 2007 December 31,
                                          2006
                        ------------- ------------
    Balance sheet data:
    Cash and cash
     equivalents        $     491,000 $    415,000
    Amounts due under
     credit facility       19,500,000    3,800,000
    Mortgage note
     payable                5,568,000    5,623,000
    Total assets           96,939,000   79,242,000
    Partners' equity       66,043,000   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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