Opinions Colin Stewart
StorageVault CanadaSVI.TOBUY ON WEAKNESSApr 24, 2018
Stock price when the opinion was issued
As of Jul 10, 2026. Market Open.
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SVI operates in a structure relatively similar to a REIT but is much more growth-focussed. It needs to utilize debt in order to be able to grow its portfolio of assets which it rents out. It has also grown primarily via acquisition. The rising rate environment has created cost pressures, however we do think the outlook is positive. As Canada has already begun cutting rates, we think SVI stands to benefit from lower interest expenses (bottom-line expansion) and being able to isse more debt to finance growth (top line expansion). The industry is capital intensive so while high debt is a risk, it is somewhat unavoidable. We like the outlook for SVI.
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Robert McWhirterRobert McWhirter
He likes this company very much and has owned it in the past. This is the only public company in Canada in the self-storage space, so it offers a scarcity value. It is a consolidator of storage companies. The trends are all going the right way for this type of business over the next 20 years--people are living in smaller spaces and need storage. His only concern is that the stock is a little expensive now. He sold it at a profit and is waiting for it to come back down before buying again.