Wright-Parkway Winter/Spring LP Update

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Operational Update

Occupancy remains strong in our two facilities in Nova Scotia. When you combine the two reports below, the percentage of units rented between the two facilities is 89.6%. If you look at the square footage, we are currently leasing out 94% of all space available. This is considered quite high for storage and Wright in particular is in need of more space with over 97% of available area currently rented!

 

 

Financial Update Q1 2022

2021 was a solid year for both facilities. Our revenue for the year was $1,631,116 over 10.5 months of operation with monthly revenues increasing 10-20% over the course of the year. The Q1 numbers, as noted below, show this growth trend continuing with $500,000 of revenue in the first quarter of 2022. This puts Wright-Parkway on track to surpass $2M in revenue for 2022.

 

 

  • The GP declared a second Distribution of $198,000 to LP unitholders in May, 2022
  • Combined distributions paid to investors since February 2021 totals $518,904 or almost 8% on equity in just over 1 year

Management is now looking at expansion options for the Wright facility. This expansion could add 4 to 6 stories and up to 60,000 Sq Ft of much needed space to this facility. Management believes the net gain in value for Wright from such an expansion could be significant

 

Chestermere Winter/Spring Self-Storage LP Update

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Operational Update

 

Leasing up a storage facility during winter months is a bit out of the norm. We were very happy to see this trend continue while also having 11 people on the waiting list for larger units, which will help with our lease up once our expansion is complete.

 

 

Financial Update

We have completed our 2021 year end and T5013s were sent to all investors at the end of March. 2021 was a great growth year for Chestermere and we ended the year at 69.9% storage occupancy with total revenues of $875,903. This represents a 47.42% increase in revenue YoY from our 2020 total of $594,161. Excluding amortization, Chestermere was profitable in 2021 – a very significant step for the LP.

 

 

As, you can see from the above YTD management reports, 2022 continues to show growth. The first quarter is typically very slow for storage, but revenue has continued to grow and occupancy as well. Chestermere is currently over 80% occupied!

 “Summer 2021 appraisal (after expansion) – Colliers $20,140,00 with roughly $8M in debt on property”

 

  • Our main goal in 2022 is to complete the planned expansion for Chestermere. Management believes the additional space will maximize revenue and position Chestermere for a potential exit in 2023

 

  • Phase 2 is expected to add ~28,000 Sq Ft net rentable and over $700,000 in gross annual revenue potential

Aviation Car Wash LP Update

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Grand Opening Update

 

  • Our Grand Opening was held on February 11th
  • Very successful ribbon cuttings’ with various political leaders as well as the Airport Authority
  • Soft opening commenced Feb 14th
  • Purpose of soft openings is to make sure all staff is well trained as well as the equipment is all installed correctly

 

Soft opening was very well received by the public!

 

Shark Week- Highlights

  • 10 Free Days of Washes
  • Over 5000 free washes
  • Close to 500 Memberships were sold
  • Last day of event we processed over 800 cars

*Over 1000 members to date

 

From all of us, thank-you for being part of this great journey

 

 

Wright-Parkway LP – Q3 2021 Update

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Operational Update

In February 2021, Wright-Parkway Self-Storage LP was formed by StoreWest & Bluebird to acquire two facilities, one in Truro, Nova Scotia and the other in Dartmouth, Nova Scotia. The Parkway facility in Truro is 21,786 SF net rentable with 259 units. While, the Wright facility in Dartmouth is 68,957 SF net rentable with 607 units.

Financial Update

Parkway (Truro)

  • Revenues of $340K YTD with 89% occupancy, Profitable

Wright facility (Dartmouth)

  • Revenues of $1.2M YTD with 90.5% occupancy, Profitable (below)

Revenue management has continued to be Bluebird’s focus with these stabilized assets. It has instituted a two-pronged revenue management program targeting both new & existing clients.

StoreWest Dufferin LP – Q3 2021 Update

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Car and Truck Wash Update

• Retrofit of the Automatic Truck bay is complete. New foam cannons and brushes are a big hit. Significant amount of maintenance fixes completed year-to-date.

• Memberships continue to grow with over 1300 members currently. This is up from ~700 members at start of year. We now have over 165 fleet clients as well.

• Sales in the overall car/truck wash are up 33% YoY. We have also dropped our labour by close 20% this year, while getting our chemical cost down as well.

Self-Storage Update

Dufferin Storage celebrated its first anniversary at the end of August. The facility achieved 35% occupancy in its first year – well ahead of projections (20% is considered normal).

At its current level of occupancy the storage facility is essentially at operational breakeven (an impressive feat in one year).

Storage is now entering the quieter period (Nov. – March), but management will continue to focus on financial occupancy while looking forward to the 2022 lease up season.

*Please note our pricing vs our competitors below

 

 

Financial Update

 

Management is currently working with our lender on terming out the construction loan for Dufferin Storage. As part of this process, updated appraisals were obtained on both the storage and wash from Colliers.

Colliers appraised the wash at $15.1M and storage at $28.3M (as is). This provides a total project appraisal of $43.4M with a total project cost of ~$29M (~$14.4M gain on $11M equity). While this is no guarantee of exit value it is encouraging.

Chestermere Self-Storage LP – Q3 2021 Update

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Operational Update

In late 2020, StoreWest replaced our existing facility Manager with Bluebird. In addition to leasing up the facility, Bluebird’s main focus has been on bringing up our revenues and financial occupancy. This has been achieved through systematic rent increases as noted below. The net result has been a dramatic increase in monthly revenue.

Financial Update

 

  • As of the end of September, storage is at ~75% occupancy and our RV lots are at 95%+ with waiting lists.
  • Chestermere is fully profitable and phase 1 is nearing full stabilization (85% occupancy)
Summer 2021 appraisal (after expansion) – Colliers $20,140,00 with roughly $7.6M in debt on property
  • Management is currently focused on securing permits, financing, and a reasonable quote for the proposed phase 2 expansion.
  • Phase 2 is expected to add ~28,000 SqFt net rentable and over $700,000 in gross annual revenue potential.

Essential service – no payments deferred or missed during Covid

Aviation Car Wash LP Update

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Construction Update

  • Currently finalizing building envelope construction, and anticipate fully insulated envelope by mid November
  • Vehicle conveyance system install complete
  • Majority of car wash equipment has been received/secured on-site and installation initiated
  • Bulk of equipment installation will continue with full envelope enclosure in November

Opening January 2022

  • Enmax transformer has been energized with power and gas to site which will aid in keeping our costs down with alleviating any need for internal propane heating
  • Internal framing and drywall is substantially complete
  • Project construction is over 70% complete to-date

  • Currently tracking for construction completion late December 2021, with operational opening date anticipated to be in January 2022
  • The project is still tracking to construction budget

StoreWest Dufferin LP – Spring 2020 Update

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Despite our next scheduled update not being until July, the General Partners (GP) of StoreWest Dufferin LP felt it was important to communicate with everyone considering the current uncertainty surrounding COVID-19. We will cover off both segments of the business in order.

 

Great White Car & Truck Wash

This business is currently open and operational. However, in the wake of the COVID-19 Pandemic, we have made adjustments on an operational basis to ensure we are adhering to current and evolving provincial guidelines. First, effective March 30, we have adjusted our hours of business to 8AM to 8PM in order to provide more flexibility for our employees in these extraordinary times. The safety of our employees and customers is the top priority. This adjusment has allowed employees to more easily arrange transportation and childcare for their families, while allowing us to stay open and maintain a properly staffed work environment. This change was implemented only after considerable review of operational data and analysis of the highest income-generating hours.

At Great White Car and Truck Wash, we have been blessed with a very dedicated staff, many of whom have been with us since we opened. While the car wash is considered a low risk environment with respect to the virus, their loyalty and reliability has been exceptional. To offset the overall reduction of working hours available to our employees, we have implemented a temporary $2.00/hour raise. We want to ensure that the efforts of our staff during this difficult time are being recognized and appreciated, and we anticipate that these changes will help them weather the challenges of the situation.

As we analyze government protocols and newly implemented rules, our partners have taken the firm stance that we are presently classified as an essential service. Car washes have generally fallen into this classification and our truck wash with 90+ fleets under contract only strengthens this point. Great White is currently providing needed cleaning and washing services to a wide variety of essential companies including food transportation companies, towing companies, utility companies and Alberta Health Services. We will continue to monitor the situation, and, should this categorization change, we will inform all stakeholders of the same. Otherwise we will continue to operate the wash and keep our staff employed.

StoreWest Chestermere Self-Storage LP

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2019 Winter Update

 

We’re pleased to report that this project has been going very well. The RV and boat storage portion of the business is now at 80% occupancy and the existing storage facility is at 40% occupancy and strongly trending in the right direction. Management went through a process this summer to better understand if expanding the storage facility would add value to the project. As a result of their findings, the decision has been made to significantly expand the facility in 2020. At current levels, the facility is profitable and the future looks exciting. Management has been approached by several groups interested in purchasing the property. The interest has been significant enough that they are planning to officially market the property in Q1 2020 and solicit offers.
We currently have the investment on your accounts valued at book value. It is safe to say that this understates the value of your investment.

Additional details are included in the below update from Management.

Chestermere 2019 H2 Update

StoreWest Dufferin LP Update

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We have been very encouraged by the operating results from the newly opened car/truck wash. The business model is very stable with the majority of revenue coming from car wash monthly memberships (currently over 500 with a goal to get to 1,500-2,000); and fleet contracts for trucks (currently 40 fleet contracts and the demand has been so high that they have to be very selective not to overload the system). The car and truck wash is looking like it is going to be very successful. On this site, we also have a self-storage facility that is under construction. They plan to be open for business in 2020. This site is going to be marketed, along with their Chestermere project, as there has been strong interest in purchasing the property even prior to construction being completed. There is currently a lot of money in Canada being invested in self storage, therefore we could end up selling the storage business in 2020. This would result in large distributions to unitholders while still having a profitable car/truck wash paying healthy dividends to shareholders.

Please click below to view Management’s Report
Dufferin 2019 H2 Update

 

 

 

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