Public Storage Canadian Properties Announces Second Quarter 2009 Operating Results and Distributions

TORONTO, ONTARIO -- (Marketwire) -- 08/05/09 -- Public Storage Canadian Properties (the "Partnership") (TSX: PUB) today announced operating results for the second quarter ended June 30, 2009 and distributions to be paid on September 30, 2009.

Operating Results

Net income of the Partnership was $1,717,000 or $0.19 per partnership unit ("Unit") for the three months ended June 30, 2009 compared to $1,997,000 or $0.22 per Unit for the same period in 2008. Net income of the Partnership was $3,247,000 or $0.36 per Unit for the six months ended June 30, 2009 compared to $3,577,000 or $0.40 per Unit for the same period in 2008.

Property Operations

The Partnership owns, and derives substantially all of its income from, 27 self-storage facilities, of which fifteen are located in Ontario, five are located in British Columbia, six are located in Quebec and one is located in Alberta. In addition, the Partnership owns parcels of land in Oakville, Ontario; Orleans, Ontario; and Richmond Hill, Ontario for development into new self-storage facilities.

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). Management considers the operating performance of the "Same Store" facilities to be a more useful measure of the overall operating performance of the Partnership's portfolio to analyze trends and provide meaningful comparisons. "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, 2009, the "Same Store" facilities consist of 16 facilities that have been owned and operated by the Partnership since its inception and two facilities that were opened in 2005 and contain approximately 1,366,000 net rentable square feet and 12,678 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,
             ---------------------------------------------------------------
                    2009        2008 Change         2009        2008 Change
             ---------------------------------------------------------------

Rental
 income      $ 4,525,000 $ 5,035,000 (10.1%) $ 9,152,000 $ 9,794,000  (6.6%)
Less: cost
 of operations 1,265,000   1,491,000 (15.2%)   2,841,000   3,051,000  (6.9%)
Less:
 management
 fees            271,000     302,000 (10.3%)     549,000     587,000  (6.5%)
             -----------------------         -----------------------
Net operating
 income (1)  $ 2,989,000 $ 3,242,000  (7.8%) $ 5,762,000 $ 6,156,000  (6.4%)
             -----------------------         -----------------------
             -----------------------         -----------------------

Gross
 margin (2)        66.1%       64.4%               63.0%       62.9%
Weighted
 average for
 period:
 Occupancy         89.1%       86.1%               86.1%       85.4%
 Realized
  annual rent
  per square
  foot (3)        $14.90      $17.14 (13.1%)      $15.59      $16.82  (7.3%)

End of
 period
 occupancy         90.1%       87.1%               90.1%       87.1%

(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-generally accepted accounting principles ("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, 2009 and 2008:

                 Three months ended June 30,       Six months ended June 30,
             ---------------------------------------------------------------
                    2009        2008 Change         2009        2008 Change
             ---------------------------------------------------------------
Calculation
 of FFO:
Net income   $ 1,717,000 $ 1,997,000         $ 3,247,000 $ 3,577,000
 Amortization
  of real
  estate
  facilities   1,185,000   1,066,000           2,319,000   2,115,000
 Amortization
  of
  intangible
  assets               -      49,000                   -      99,000
 Less: future
  income tax
  benefit        (12,000)    (46,000)            (34,000)   (117,000)
             -----------------------         -----------------------
FFO          $ 2,890,000 $ 3,066,000  (5.7%) $ 5,532,000 $ 5,674,000  (2.5%)
             -----------------------         -----------------------
             -----------------------         -----------------------
Weighted
 average
 number of
 Units         9,040,181   9,040,181           9,040,181   9,040,181
FFO per
 Unit              $0.32       $0.34  (5.9%)       $0.61       $0.63  (3.2%)

Calculation
 of EBITDA:
Net income  $ 1,717,000  $ 1,997,000         $ 3,247,000 $ 3,577,000
 Amortization
  of real
  estate      1,185,000    1,066,000           2,319,000   2,115,000
 Amortization
  of
  intangibles         -       49,000                   -      99,000
 Interest
  and
  commitment
  fees          215,000      141,000             359,000     284,000
 Less: income
  tax benefit   (12,000)     (46,000)            (34,000)   (117,000)
 Less:
  interest
  income         (6,000)     (41,000)            (14,000)    (75,000)
             -----------------------         -----------------------
EBITDA      $ 3,099,000  $ 3,166,000  (2.1%) $ 5,877,000 $ 5,883,000  (0.1%)
             -----------------------         -----------------------
             -----------------------         -----------------------
Weighted
 average
 number of
 Units        9,040,181    9,040,181           9,040,181   9,040,181
EBITDA
 per Unit         $0.34        $0.35  (2.9%)       $0.65       $0.65  (0.0%)

Distributions

The board of directors of the general partner today declared a distribution of $0.225 per Unit payable on September 30, 2009 to unitholders of record at the close of business on September 15, 2009.

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 main website is www.publicstoragecanada.com. The Partnership's investor website is www.pscinvestor.com.

                     PUBLIC STORAGE CANADIAN PROPERTIES
                          SELECTED FINANCIAL DATA


                     Three Months Ended June 30,   Six Months Ended June 30,
                     -------------------------------------------------------
                              2009         2008          2009          2008
                     -------------------------------------------------------

Revenue:
Rental income          $ 5,828,000  $ 6,155,000  $ 11,721,000  $ 11,905,000
Interest and
 other income                6,000       41,000        14,000        75,000
                     -------------------------------------------------------
                         5,834,000    6,196,000    11,735,000    11,980,000
                     -------------------------------------------------------

Costs and expenses:
Cost of operations       2,268,000    2,435,000     4,906,000     4,971,000
Management fees paid
 to an affiliate           349,000      369,000       703,000       714,000
Amortization of
 real estate
 facilities              1,185,000    1,066,000     2,319,000     2,115,000
Amortization of
 intangible assets               -       49,000             -        99,000
Interest and
 commitment fees           215,000      141,000       359,000       284,000
Administrative             112,000      185,000       235,000       337,000
                     -------------------------------------------------------
                         4,129,000    4,245,000     8,522,000     8,520,000

Income before
 income taxes            1,705,000    1,951,000     3,213,000     3,460,000
                     -------------------------------------------------------

Future income
 tax benefit                12,000       46,000        34,000       117,000
                     -------------------------------------------------------

Net income             $ 1,717,000  $ 1,997,000   $ 3,247,000   $ 3,577,000
                     -------------------------------------------------------
                     -------------------------------------------------------

Net income per Unit         $ 0.19       $ 0.22        $ 0.36        $ 0.40
Distributions per Unit     $ 0.225       $ 0.45        $ 0.45        $ 0.90

Weighted average
 number of Units
 outstanding             9,040,181    9,040,181     9,040,181     9,040,181



                                              As at               As at
                                      June 30, 2009   December 31, 2008
                                      ---------------------------------
Balance sheet data:
Cash and cash equivalents                 $ 288,000         $ 2,390,000
Debt                                     41,384,000          24,371,000
Total assets                            136,076,000         119,504,000
Partners' equity                         88,795,000          90,046,000
Units outstanding at end of period        9,040,181           9,040,181