Public Storage Reports Results for the Three Months Ended September 30, 2015

GLENDALE, Calif.--()--Public Storage (NYSE:PSA) announced today operating results for the three months ended September 30, 2015.

“Company Info, Investor Relations, News and Events, Events Calendar.”

Operating Results for the Three Months Ended September 30, 2015

For the three months ended September 30, 2015, net income allocable to our common shareholders was $273.5 million or $1.58 per diluted common share, compared to $231.8 million or $1.34 per diluted common share for the same period in 2014 representing an increase of $41.7 million or $0.24 per diluted common share. The increase is primarily due to a $41.6 million increase in self-storage net operating income as a result of a $29.5 million increase in our Same Store Facilities and a $12.1 million increase in our Non Same Store Facilities. Revenues for the Same Store Facilities increased 6.7% or $31.9 million in the three months ended September 30, 2015 as compared to the same period in 2014, due primarily to higher realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 1.9% or $2.4 million in the three months ended September 30, 2015 as compared to the same period in 2014, due primarily to increases in property taxes. The increase in net operating income for the Non Same Store Facilities is due primarily to the impact of the development and acquisition of 191 self-storage facilities since January 2013.

Operating Results for the Nine Months Ended September 30, 2015

For the nine months ended September 30, 2015, net income allocable to our common shareholders was $750.0 million or $4.32 per diluted common share, compared to $624.2 million or $3.61 per diluted common share for the same period in 2014 representing an increase of $125.8 million or $0.71 per diluted common share. The increase is primarily due to a $126.4 million increase in self-storage net operating income as a result of a $84.6 million increase in our Same Store Facilities and a $41.8 million increase in our Non Same Store Facilities. Revenues for the Same Store Facilities increased 6.5% or $89.9 million in the nine months ended September 30, 2015 as compared to the same period in 2014, due primarily to higher realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 1.3% or $5.3 million in the nine months ended September 30, 2015 as compared to the same period in 2014, due primarily to increases in property taxes, offset partially by lower advertising and selling expenses. The increase in net operating income for the Non Same Store Facilities is due primarily to the impact of the development and acquisition of 191 self-storage facilities since January 2013.

Funds from Operations

For the three months ended September 30, 2015, funds from operations (“FFO”) was $2.27 per diluted common share, as compared to $2.08 for the same period in 2014, representing an increase of $0.19 per share. FFO is a non-GAAP (generally accepted accounting principles) term defined by the National Association of Real Estate Investment Trusts and generally represents net income before depreciation, gains and losses and impairment charges with respect to real estate assets.

For the nine months ended September 30, 2015, FFO was $6.33 per diluted common share, as compared to $5.81 for the same period in 2014, representing an increase of $0.52 per share.

We also present “Core FFO per share,” a non-GAAP measure that represents FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) EITF D-42 charges related to the redemption of preferred securities, (iii) property acquisition costs and (iv) certain other items. We believe Core FFO per share is a helpful measure used by investors and REIT analysts to understand our performance. However, Core FFO per share is not a substitute for net income per share. Because other REITs may not compute Core FFO per share in the same manner as we do, may not use the same terminology or may not present such a measure, Core FFO per share may not be comparable among REITs.

The following table reconciles from FFO per share to Core FFO per share (unaudited):

                   
Three Months Ended September 30, Nine Months Ended September 30,
Percentage Percentage
2015 2014 Change 2015 2014 Change
 
FFO per share $ 2.27 $ 2.08 9.1% $ 6.33 $ 5.81 9.0%

Eliminate the per share impact of items excluded from Core FFO:

Foreign currency exchange loss - 0.02 - 0.04
Application of EITF D-42 0.03 - 0.06 -
Property acquisition costs 0.01 0.01 0.03 0.02
Other items   0.02   -   0.02   0.01
Core FFO per share $ 2.33 $ 2.11 10.4% $ 6.44 $ 5.88 9.5%
 

Property Operations – Same Store Facilities

The Same Store Facilities represent those facilities that have been owned and operated on a stabilized basis since January 1, 2013 and therefore provide meaningful comparisons for 2014 and 2015. The following table summarizes the historical operating results of these 1,990 facilities (126.3 million net rentable square feet) that represent approximately 86% of the aggregate net rentable square feet of our U.S. consolidated self-storage portfolio at September 30, 2015.

           

Selected Operating Data for the Same

Store Facilities (1,990 facilities)

(unaudited):

Three Months Ended September 30, Nine Months Ended September 30,
Percentage Percentage
2015 2014 Change 2015 2014 Change
 
(Dollar amounts in thousands, except for weighted average data)
Revenues:
Rental income $ 487,526 $ 456,715 6.7% $ 1,401,569 $ 1,312,928 6.8%
Late charges and administrative fees   24,316   23,174 4.9%   68,271   67,012 1.9%
Total revenues (a)   511,842   479,889 6.7%   1,469,840   1,379,940 6.5%
 
Cost of operations:
Property taxes 49,403 46,554 6.1% 149,196 141,973 5.1%
On-site property manager payroll 25,247 24,950 1.2% 77,292 77,374 (0.1)%
Supervisory payroll 8,866 8,652 2.5% 26,861 26,342 2.0%
Repairs and maintenance 10,048 9,938 1.1% 26,632 27,034 (1.5)%
Snow removal - - 0.0% 8,351 7,237 15.4%
Utilities 10,285 10,434 (1.4)% 29,870 30,389 (1.7)%
Advertising and selling expense 6,906 7,844 (12.0)% 18,569 20,481 (9.3)%
Other direct property costs 12,913 12,952 (0.3)% 39,116 38,431 1.8%
Allocated overhead   8,456   8,385 0.8%   27,307   28,594 (4.5)%
Total cost of operations (a)   132,124   129,709 1.9%   403,194   397,855 1.3%
Net operating income (b) $ 379,718 $ 350,180 8.4% $ 1,066,646 $ 982,085 8.6%
 
Gross margin 74.2% 73.0% 1.6% 72.6% 71.2% 2.0%
 
Weighted average for the period:
Square foot occupancy 95.3% 94.7% 0.6% 94.7% 94.0% 0.7%
Realized annual rental income per (c):
Occupied square foot $ 16.19 $ 15.27 6.0% $ 15.62 $ 14.74 6.0%
Available square foot (“REVPAF”) $ 15.43 $ 14.46 6.7% $ 14.79 $ 13.86 6.7%
At September 30:
Square foot occupancy 94.2% 93.8% 0.4%

Annual contract rent per occupied square foot (d)

$ 16.90 $ 15.95 6.0%
 
(a)   Revenues and cost of operations do not include ancillary revenues and expenses generated at the facilities with respect to tenant reinsurance and retail sales.
 
(b) See attached reconciliation of self-storage net operating income (“NOI”) to operating income.
 
(c) Realized annual rent per occupied square foot is computed by dividing annualized rental income, before late charges and administrative fees, by the weighted average occupied square feet for the period. Realized annual rent per available square foot (“REVPAF”) is computed by dividing annualized rental income, before late charges and administrative fees, by the total available rentable square feet for the period. These measures exclude late charges and administrative fees in order to provide a better measure of our ongoing level of revenue. Late charges are dependent upon the level of delinquency and administrative fees are dependent upon the level of move-ins. In addition, the rates charged for late charges and administrative fees can vary independently from rental rates. These measures take into consideration promotional discounts, which reduce rental income.
 
(d) Contract rent represents the applicable contractual monthly rent charged to our tenants, excluding the impact of promotional discounts, late charges and administrative fees.
 

The following table summarizes selected quarterly financial data with respect to the Same Store Facilities (unaudited):

           
For the Quarter Ended
March 31 June 30 September 30 December 31 Entire Year
 

(Amounts in thousands, except for per square foot amounts)

Total revenues:
2015 $ 470,792 $ 487,206 $ 511,842
2014 $ 443,848 $ 456,203 $ 479,889 $ 471,729 $ 1,851,669
 
Total cost of operations:
2015 $ 141,997 $ 129,073 $ 132,124
2014 $ 140,429 $ 127,717 $ 129,709 $ 104,560 $ 502,415
 
Property taxes:
2015 $ 49,972 $ 49,821 $ 49,403
2014 $ 47,967 $ 47,452 $ 46,554 $ 28,037 $ 170,010
 

Repairs and maintenance, including snow removal expenses:

2015 $ 16,000 $ 8,935 $ 10,048
2014 $ 14,823 $ 9,510 $ 9,938 $ 9,397 $ 43,668
 
Advertising and selling expense:
2015 $ 6,163 $ 5,500 $ 6,906
2014 $ 6,544 $ 6,093 $ 7,844 $ 6,430 $ 26,911
 
REVPAF:
2015 $ 14.21 $ 14.73 $ 15.43
2014 $ 13.35 $ 13.76 $ 14.46 $ 14.24 $ 13.95
 

Weighted average realized annual rent per occupied square foot:

2015 $ 15.21 $ 15.44 $ 16.19
2014 $ 14.41 $ 14.53 $ 15.27 $ 15.23 $ 14.86
 

Weighted average occupancy levels for the period:

2015 93.4% 95.4% 95.3%
2014 92.6% 94.7% 94.7% 93.5% 93.9%
 

Property Operations – Non Same Store Facilities

The Non Same Store Facilities at September 30, 2015 represent 265 facilities that were not stabilized with respect to occupancies or rental rates since January 1, 2013 or that we did not own as of January 1, 2013. The following table summarizes operating data with respect to the Non Same Store Facilities (unaudited):

           

NON SAME STORE FACILITIES

Three Months Ended September 30, Nine Months Ended September 30,

 

2015 2014 Change 2015 2014 Change
 
(Dollar amounts in thousands, except square foot amounts)
Revenues:
2015 acquisitions $ 1,861 $ - $ 1,861 $ 3,503 $ - $ 3,503
2014 acquisitions 11,037 6,336 4,701 31,043 6,815 24,228
2013 acquisitions 28,832 25,376 3,456 81,936 71,147 10,789
Other facilities   27,404   22,670   4,734   76,319   62,759   13,560
Total revenues   69,134   54,382   14,752   192,801   140,721   52,080
 

Cost of operations before depreciation and amortization expense:

2015 acquisitions 574 - 574 1,152 - 1,152
2014 acquisitions 3,166 1,926 1,240 9,303 2,118 7,185
2013 acquisitions 8,405 8,166 239 24,672 24,538 134
Other facilities   7,741   7,178   563   22,757   20,963   1,794
Total cost of operations   19,886   17,270   2,616   57,884   47,619   10,265
 
Net operating income:
2015 acquisitions 1,287 - 1,287 2,351 - 2,351
2014 acquisitions 7,871 4,410 3,461 21,740 4,697 17,043
2013 acquisitions 20,427 17,210 3,217 57,264 46,609 10,655
Other facilities   19,663   15,492   4,171   53,562   41,796   11,766
 
Net operating income (a) $ 49,248 $ 37,112 $ 12,136 $ 134,917 $ 93,102 $ 41,815
 

At September 30:

Square foot occupancy:
2015 acquisitions 89.4% - -
2014 acquisitions 93.9% 91.6% 2.5%
2013 acquisitions 93.5% 90.7% 3.1%
Other facilities   86.5%   87.9%   (1.6)%
  90.7%   89.8%   1.0%
Annual contract rent per occupied square foot:
2015 acquisitions $ 13.38 $ - -
2014 acquisitions 13.69 12.01 14.0%
2013 acquisitions 15.25 14.16 7.7%
Other facilities   16.15   15.87   1.8%
$ 15.24 $ 14.50   5.1%
Number of facilities:
2015 acquisitions 10 - 10
2014 acquisitions 44 31 13
2013 acquisitions 121 121 -
Other facilities   90   80   10
  265   232   33
Net rentable square feet (in thousands):
2015 acquisitions 738 - 738
2014 acquisitions 3,457 2,238 1,219
2013 acquisitions 8,056 8,036 20
Other facilities   7,802   6,590   1,212
  20,053   16,864   3,189
 
(a)   See attached reconciliation of self-storage NOI to operating income.
 

Investing and Capital Markets Activities

During the three months ended September 30, 2015, we acquired two self-storage facilities in Colorado, with 0.2 million net rentable square feet, for $26 million. Subsequent to September 30, 2015, we acquired or were under contract to acquire eleven self-storage facilities (one in California, eight in Florida and two in Texas), with 0.8 million net rentable square feet, for $108 million.

During the three months ended September 30, 2015, we completed three newly developed facilities and various expansion projects (0.3 million net rentable square feet) costing $31 million. At September 30, 2015, we had various facilities in development (3.4 million net rentable square feet) estimated to cost $417 million and various expansion projects (0.6 million net rentable square feet) estimated to cost $90 million. The remaining $332 million development cost for these projects is expected to be incurred primarily in the remainder of 2015 and 2016.

During the three months ended September 30, 2015, we called our 6.500% Series P Preferred Shares for redemption. The shares were redeemed on October 8, 2015.

We agreed to issue, in a privately negotiated transaction closing on November 3, 2015, €242.0 million of Euro denominated Senior Unsecured Notes, bearing interest at a fixed rate of 2.175% and maturing in ten years.

Distributions Declared

On October 28, 2015, our Board of Trustees declared a regular common quarterly dividend of $1.70 per common share. The Board also declared dividends with respect to our various series of preferred shares. All the dividends are payable on December 30, 2015 to shareholders of record as of December 15, 2015.

Third Quarter Conference Call

A conference call is scheduled for October 29, 2015 at 11:00 a.m. (PDT) to discuss the third quarter earnings results. The domestic dial-in number is (866) 406-5408, and the international dial-in number is (973) 582-2770 (conference ID number for either domestic or international is 57192844). A simultaneous audio webcast may be accessed by using the link at www.publicstorage.com under “Company Info, Investor Relations, News and Events, Events Calendar.” A replay of the conference call may be accessed through November 12, 2015 by calling (800) 585-8367 (domestic) or (404) 537-3406 (international) or by using the link at www.publicstorage.com under “Company Info, Investor Relations, News and Events, Events Calendar.” All forms of replay utilize conference ID number 57192844.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. The Company’s headquarters are located in Glendale, California. At September 30, 2015, we had interests in 2,266 self-storage facilities located in 38 states with approximately 147 million net rentable square feet in the United States and 217 storage facilities located in seven Western European nations with approximately eleven million net rentable square feet operated under the “Shurgard” brand. We also own a 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2015.

Additional information about Public Storage is available on our website, www.publicstorage.com.

Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are forward-looking statements which may be identified by the use of the words “expects,” “believes,” “anticipates,” “should,” “estimates” and similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance are described from time to time in our filings with the Securities and Exchange Commission, including in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, our other Quarterly Reports on Form 10-Q and current reports on Form 8-K. These risks include, but are not limited to, the following: general risks associated with the ownership and operation of real estate, including changes in demand for our storage facilities, potential liability for environmental contamination, adverse changes in tax, real estate and zoning laws and regulations and the impact of natural disasters; risks associated with downturns in the national and local economies in the markets in which we operate; the impact of competition from new and existing self-storage and commercial facilities and other storage alternatives; difficulties in our ability to successfully evaluate, finance, integrate into our existing operations and manage acquired and developed properties; risks related to our development of new properties and/or participation in joint ventures; risks associated with international operations including, but not limited to, unfavorable foreign currency rate fluctuations that could adversely affect our earnings and cash flows; the impact of the regulatory environment as well as national, state and local laws and regulations including, without limitation, those governing REITs and our tenant reinsurance business; risks associated with a possible failure by us to qualify as a REIT under the Internal Revenue Code of 1986, as amended; security breaches or a failure of our networks, systems or technology could adversely impact our business, customer and employee relationships; changes in federal tax laws related to the taxation of REITs, which could impact our status as a REIT; difficulties in raising capital at a reasonable cost; delays in the development process; ongoing litigation and other legal and regulatory actions which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business; and economic uncertainty due to the impact of war or terrorism. We disclaim any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, new estimates, or other factors, events or circumstances after the date of this press release, except where expressly required by law.

 
PUBLIC STORAGE
SELECTED INCOME STATEMENT DATA

(Amounts in thousands, except per share data)

(Unaudited)

       
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
 
Revenues:
Self-storage facilities $ 580,976 $ 534,271 $ 1,662,641 $ 1,520,661
Ancillary operations (a)   37,896     32,819     109,725     94,954  
  618,872     567,090     1,772,366     1,615,615  
 
Expenses:
Self-storage cost of operations 152,010 146,979 461,078 445,474
Ancillary cost of operations (a) 12,676 11,589 36,715 35,473
Depreciation and amortization 106,082 111,077 319,701 326,541
General and administrative   23,573     17,874     68,721     52,240  
  294,341     287,519     886,215     859,728  
 
Operating income 324,531 279,571 886,151 755,887
 
Other income (expense):
Interest and other income (a) 3,659 3,830 11,509 13,674
Interest expense - (1,238 ) - (6,781 )
Equity in earnings of unconsolidated real estate entities 12,603 14,566 36,267 43,305
Gain on real estate sales 343 1,260 18,503 2,479
Foreign currency exchange loss   -     (3,012 )   -     (7,035 )
Net income 341,136 294,977 952,430 801,529
Allocation to noncontrolling interests   (1,568 )   (1,518 )   (4,676 )   (4,040 )
Net income allocable to Public Storage shareholders 339,568 293,459 947,754 797,489
Allocation of net income to:
Preferred shareholders – distributions (61,062 ) (60,763 ) (186,066 ) (170,942 )
Preferred shareholders – redemptions (4,113 ) - (8,897 ) -
Restricted share units   (885 )   (881 )   (2,744 )   (2,328 )
Net income allocable to common shareholders $ 273,508   $ 231,815   $ 750,047   $ 624,219  
 

Per common share:

Net income per common share – Basic $ 1.58   $ 1.34   $ 4.34   $ 3.63  
Net income per common share – Diluted $ 1.58   $ 1.34   $ 4.32   $ 3.61  
Weighted average common shares – Basic   172,771     172,378     172,641     172,190  
Weighted average common shares – Diluted   173,529     173,304     173,428     173,098  
 
(a)   Beginning with the three months ended September 30, 2015, commercial and property management operations are no longer included in ancillary revenues and expenses and are now included, net, in “Interest and other income.” All prior period amounts have also been reclassified.
 
 
PUBLIC STORAGE
SELECTED BALANCE SHEET DATA

(Amounts in thousands, except share and per share data)

   
September 30, 2015 December 31, 2014
ASSETS (Unaudited)
 
Cash and cash equivalents $ 35,668 $ 187,712
 
Operating real estate facilities:
Land and buildings, at cost 13,092,863 12,863,235
Accumulated depreciation   (4,767,104 )   (4,482,520 )
8,325,759 8,380,715
Construction in process 174,622 104,573
Investments in unconsolidated real estate entities 806,204 813,740
Goodwill and other intangible assets, net 212,976 228,632
Other assets   99,586     103,304  
Total assets $ 9,654,815   $ 9,818,676  
 
 
 
LIABILITIES AND EQUITY
Notes payable $ 55,725 $ 64,364
Preferred shares called for redemption 125,000 -
Accrued and other liabilities   295,482     247,141  
Total liabilities 476,207 311,505
 
Equity:
Public Storage shareholders’ equity:

Cumulative Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 162,200 shares issued (in series) and outstanding (173,000 at December 31, 2014), at liquidation preference

4,055,000 4,325,000

Common Shares, $0.10 par value, 650,000,000 shares authorized, 172,853,700 shares issued and outstanding (172,445,554 shares at December 31, 2014)

17,286 17,245
Paid-in capital 5,591,664 5,561,530
Accumulated deficit (444,395 ) (374,823 )
Accumulated other comprehensive loss   (67,437 )   (48,156 )
Total Public Storage shareholders’ equity 9,152,118 9,480,796
Noncontrolling interests   26,490     26,375  
Total equity   9,178,608     9,507,171  
Total liabilities and equity $ 9,654,815   $ 9,818,676  
 
 
PUBLIC STORAGE
SELECTED FINANCIAL DATA
 
Computation of Funds from Operations and Funds Available for Distribution

(Unaudited – amounts in thousands, except per share data)

       
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
 

Computation of FFO per Share:

 
Net income allocable to common shareholders $ 273,508 $ 231,815 $ 750,047 $ 624,219
Eliminate items excluded from FFO:
Depreciation and amortization 106,082 111,077 319,701 326,541
Depreciation from unconsolidated real estate investments 21,276 19,688 59,092 60,421

Depreciation allocated to noncontrolling interests and restricted share unitholders

(877 ) (891 ) (2,632 ) (2,830 )

Gains on sale of real estate investments, including our equity share from investments and other

  (5,730 )   (1,440 )   (28,833 )   (2,732 )
FFO allocable to common shares (a) $ 394,259   $ 360,249   $ 1,097,375   $ 1,005,619  
Diluted weighted average common shares   173,529     173,304     173,428     173,098  
FFO per share (a) $ 2.27   $ 2.08   $ 6.33   $ 5.81  
 

Reconciliation of Earnings per Share to FFO per Share:

 
Earnings per share - diluted $ 1.58 $ 1.34 $ 4.32 $ 3.61
Eliminate per share amounts excluded from FFO:

Depreciation and amortization, including amounts from investments and excluding amounts allocated to noncontrolling interests and restricted share unitholders

0.73 0.75 2.17 2.22

Gains on sale of real estate investments, including our equity share from investments and other

  (0.04 )   (0.01 )   (0.16 )   (0.02 )
FFO per share (a) $ 2.27   $ 2.08   $ 6.33   $ 5.81  
 

Computation of Funds Available for Distribution ("FAD"):

 
FFO allocable to common shares $ 394,259 $ 360,249 $ 1,097,375 $ 1,005,619
Eliminate effect of items included in FFO but not FAD:
Non-cash share-based compensation expense 9,911 8,794 24,403 22,158
Foreign currency exchange loss - 3,012 - 7,035

Application of EITF D-42, including our equity share from investments

5,160 - 9,944 -
Less: Capital expenditures to maintain real estate facilities   (20,414 )   (30,702 )   (52,875 )   (63,599 )
 
FAD (a) $ 388,916   $ 341,353   $ 1,078,847   $ 971,213  
 
Distributions paid to common shareholders $ 293,634   $ 241,212   $ 828,410   $ 723,338  
 
Distribution payout ratio   75.5 %   70.7 %   76.8 %   74.5 %
 
Distributions per common share $ 1.70   $ 1.40   $ 4.80   $ 4.20  
 
(a)   FFO and FFO per share are non-GAAP measures defined by the National Association of Real Estate Investment Trusts and, along with FAD, are considered helpful measures of REIT performance by REITs and many REIT analysts. FFO represents net income before real estate depreciation, gains or losses and impairment charges, which are excluded because they are based upon historical real estate costs and assume that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. FAD represents FFO adjusted to exclude certain non-cash charges and to deduct capital expenditures. FFO and FFO per share are not a substitute for net income or earnings per share. FFO and FAD are not substitutes for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because they exclude investing and financing activities presented on our statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful.
 
 
PUBLIC STORAGE
SELECTED FINANCIAL DATA

 

Reconciliation of Self-Storage Net Operating Income to Operating Income

(Unaudited – amounts in thousands)

       
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
 
Self-storage revenues for:
Same Store Facilities $ 511,842 $ 479,889 $ 1,469,840 $ 1,379,940
Non Same Store Facilities   69,134     54,382     192,801     140,721  
Self-storage revenues 580,976 534,271 1,662,641 1,520,661
 
Self-storage cost of operations for:
Same Store Facilities 132,124 129,709 403,194 397,855
Non Same Store Facilities   19,886     17,270     57,884     47,619  
Self-storage cost of operations 152,010 146,979 461,078 445,474
 
Self-storage net operating income for:
Same Store Facilities 379,718 350,180 1,066,646 982,085
Non Same Store Facilities   49,248     37,112     134,917     93,102  
Self-storage net operating income (a) 428,966 387,292 1,201,563 1,075,187
Ancillary operating revenues 37,896 32,819 109,725 94,954
Ancillary cost of operations (12,676 ) (11,589 ) (36,715 ) (35,473 )
Depreciation and amortization (106,082 ) (111,077 ) (319,701 ) (326,541 )
General and administrative expense   (23,573 )   (17,874 )   (68,721 )   (52,240 )
Operating income on our income statement $ 324,531   $ 279,571   $ 886,151   $ 755,887  
 
(a)   Net operating income or “NOI” is a non-GAAP financial measure that excludes the impact of depreciation and amortization expense. We believe that NOI is a meaningful measure of operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, in evaluating property performance and in comparing period-to-period and market-to-market property operating results. In addition, we believe the investment community utilizes NOI in determining operating performance and real estate values, and does not consider depreciation expense because it is based upon historical cost. NOI is not a substitute for net income, net operating cash flow, or other related GAAP financial measures, in evaluating our operating results. This table reconciles from NOI for our self-storage facilities to the operating income presented on our income statement.
 

Contacts

Public Storage
Clemente Teng
(818) 244-8080, Ext. 1141

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