Growth through Development
“Our relationship with InScotia continues to provide us with an expanding pipeline of state-of-the-art properties for future acquisition,” Tadeson says. InScotia will develop a property and the REIT will manage it until it is fully leased up and stabilized at around 85 percent occupancy. At that point, InStorage will the buy the property from InScotia.
The REIT also provides InScotia with mezzanine financing and has a call-option on the property. It gets paid management fees on the new property once it is built, then can purchase the property when fully leased.
InScotia has 10 projects in place and is committed to two more. “We are actively looking to continue to grow InScotia’s development pipeline,” Tadeson says. “Here at InStorage, we have completed a lot of acquisitions, so our main push now is integrating all of those properties. The REIT is re-branding all the properties with the InStorage name and colors.”
The REIT is always interested in buying facilities across the country. It will conduct a single-property transaction in addition to portfolios, and plans to have facilities coast-to-coast. “If people are interested in selling a property or want to partner with us, give us a call,” Tadeson says.
The Move to the TSX
This year the REIT has not only been busy with acquisitions but also its transition onto the Toronto Stock Exchange (TSX). In March 2008, InStorage began listing its units on the TSX, consolidated its outstanding units and implemented a Unitholder Rights Plan. “We are pleased to make the move to the TSX and complete our unit consolidation, both of which represent important milestones for us,” Tadeson says. “We anticipate that the result will be more visibility and enhanced liquidity for our investors. Achieving these objectives was important to the continued execution of our business plan.”
The REIT also implemented a Unitholder Rights Plan designed to ensure the fair treatment of InStorage’s holders in any transaction involving a change of control of the REIT, and will provide the board of trustees and holders with adequate time to evaluate any unsolicited take-over bid. If appropriate, it will also seek out alternatives to maximize unitholder value.
The Rights Plan is similar to others adopted by various Canadian income trusts and corporations. Until the occurrence of certain specific events, the rights will trade with the units of the REIT and be represented by any certificates for such units.
“For 2008, we will continue to grow; it will be moderated growth in both the acquisitions and development, however, as we focus on integration and re-branding initiatives,” Tadeson says. “The fundamentals of our business are strong, and we are getting good performance from the properties. We are looking forward to tightening up the operations, and developing some good consumer awareness across the country.”
Anyone interested in selling or partnering with InStorage, contact President and COO Tom Gualtier-Walters at 416.867.9701. For further information, call 416.867.9705; visit www.instoragereit.ca.