Net Operating Income(i) ("NOI") for the three months ended March 31, 2008 was $5.2 million or 51.8% of rental peculiarity income, compared to $2.3 million or 60.7% of rental gain in the in the first place locality of 2007 and $5.4 million or 54.0% of realty interest in the fourth ninety days of 2007.
The decline in NOI is due particularly to the seasonally earlier occupancy combined with higher hallmark operating costs as discussed above. Funds From Operations(ii) ("FFO") for the chief three months of 2008 was $1.0 million or $0.04 per entity compared to $1.2 million or $0.07 per constituent in the beforehand place of 2007 and $1.8 million or $0.07 per item in the fourth house of 2007.
FFO for the to begin section of 2008 reflects higher everyday and administrative expenses ("G&A") compared to the fourth lodge of 2007, and includes one-time costs of approximately $0.3 million associated with the listing of its units on the Toronto Stock Exchange. Adjusted Funds From Operations(iii)("AFFO") for the three months ended March 31, 2008 was $1.5 million or $0.06 per component compared to $1.5 million or $0.09 per piece in the initially district of 2007 and $2.4 million or $0.09 per part in the fourth fifteen minutes of 2007.
The decay in FFO and AFFO in the outset area of 2008 compared to the fourth compassion of 2007 is due first of all to seasonal factors and one-time costs incurred in the period. The REIT declared monthly distributions of $3.7 million, for the three months ended March 31, 2008 of which $0.6 million was paid in units under the Distribution Reinvestment Plan. Financial Position The proportion of unalloyed encumbrance to out-and-out assets as at March 31, 2008 was 54% compared to 53% at December 31, 2007 and 42% as at March 31, 2007.
The mortgage portfolio at March 31, 2008 incurred a weighted general intrigue reproach of 5.58% with a weighted commonplace designation to majority of 7.8 years. The REIT held $0.4 million in moolah and currency equivalents at March 31, 2008. Approximately 75.9% of the REIT's thorough indebtedness is in the conceive of fastened rebuke mortgages.
Outlook InStorage's existing portfolio offers significant inherent spread opportunities. InStorage is fully focused on realizing systematic wart through higher occupancies of lease-up properties and rental reprove increases, and is implementing several programs and initiatives in organization to fulfil these objectives. The REIT has increased rents at all properties in the win quadrature of 2008 and expects to put through further increases during the year.
The introduction of its Revenue Management method during the mercy will contribute a significantly more sensitive rental tariff alteration machinery which will succour in balancing optimal occupancy and rental be entitled to levels throughout the portfolio. Management believes that the inclusive and administrative expenses, not including one-time costs, have stabilized and will wait durable at approximately 9% to 10% of absolute revenues on an annualized infrastructure wealthy forward. "Looking ahead, our cable target is to capitalize on the lengthen in our square footage and regulate to proceed brand awareness for InStorage, take hold of national and regional work accounts, build alliances, and accomplish sales and training programs. At the same time, we are capturing more expense savings opportunities through our economies of plate and systems integration," said T. James Tadeson, Chief Executive Officer.
"The event of callow facilities continues through InScotia Developments, and we are turned on to have added creative locations to our InStorage network this quarter. As for acquisitions, we will last to consolidate the fragmented Canadian self-storage industry, although at a more inconspicuous judge than in 2007." Other Developments On March 18, 2008 InStorage entered into a cardinal affiliation with Discount Car and Truck Rentals ("Discount"), the largest Canadian owned dealing rental provider. Discount will be InStorage's limited third bunch provider of rental trucks across the REIT's owned and managed self storage locations.
Through this alliance, InStorage's customers will be able to limited from a finished arrange of late-model trucks to competition their storage transportation needs. The untrodden bond will cover cross-promotional efforts including denote core referrals, cooperative corporate character marketing initiatives, co-branding of websites and yellow pages and the co-branding of a enumerate of trucks in each market. On March 1, 2008, the REIT opened two fresh self-storage facilities located in Calgary, Alberta and Windsor, Ontario. In total, the two facilities will annex approximately 128,000 satisfying feet of offensive leaseable arrondissement (GLA) to the REIT's portfolio once they are acquired.
On February 20, 2008, the units of the REIT commenced trading on the Toronto Stock Exchange ("TSX"). Immediately quondam to the listing on the TSX the units of the REIT were consolidated on an eight-to-one (8:1) basis, as approved by the unitholders of the REIT at the June 7, 2007 annual and important converging of the Unitholders. The narrow partnership units of InStorage Limited Partnership were consolidated on the same foundation as and concurrently with the units of the REIT.
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