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National Bank Financial has initiated coverage on StorageVault Canada (TSXV: SVI)

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Analyst Dawoon Chung gives the company an outperform rating, with an above average risk rating, and a $1.50 target price, a premium of 22% to the $1.23 price on October 4th, the day the report was issued.

Additional Information:

Company: StorageVault Canada
Website: http://www.storagevaultcanada.com
Stock Symbol: TSXV: SVI
Date Published: Oct 12, 2016
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Today’s buy recommendation comes from National Bank Financial, which has initiated coverage on StorageVault Canada

Analyst Dawoon Chung gives the company an outperform rating, with an above average risk rating, and a $1.50 target price, a premium of 22% to the $1.23 price on October 4th, the day the report was issued.

StorageVault is the only publicly traded Canadian storage operator that owns, operates, and rents self storage and portable storage space to individual and commercial customers.

In August 2016, the company significantly increased the size of its float through a $57.5 million equity offering.

The company recently completed a $48 million non arm’s-length acquisition of additional properties and storage units in Montreal and Toronto, through the issuance of approximately 8 million shares.

The REIT’s portfolio of more than 16,000 self storage units is mostly located in Ontario and British Columbia, with the balance of properties situated in Manitoba, Alberta, Saskatchewan and Quebec.

Currently, the self storage industry is highly fragmented, with only 10% of the facilities owned by large operators.

The rest are owned by “mon & pop” shops, which are relatively passive from a business strategy standpoint as they do not have the balance sheet to expand and don’t have the experience with advanced technological systems to enhance their operating performance.

Analyst Dawoon Chung stated: “As the only publicly traded self storage real estate entity in Canada, StorageVault has a significant first mover advantage to access capital in the public markets and become a leading consolidator.”

The units are trading at $1.25, and with 252 million units outstanding, the company is capitalized at $315 million.

For more information, please visit the company’s website www.storagevaultcanada.com or contact Steve Scott, CEO, at 1-877-622-0205 or email ir@storagevaultcanada.com.

For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.

I’m Samantha Deutscher for Investmentpitch Media