Public Storage (NYSE:PSA) announced today operating results for the
quarter ended September 30, 2013.
Operating Results for the Three Months Ended
September 30, 2013
For the three months ended September 30, 2013, net income allocable to
our common shareholders was $231.4 million or $1.34 per diluted common
share, compared to $202.5 million or $1.18 per diluted common share for
the same period in 2012, representing an increase of $28.9 million or
$0.16 per diluted common share. This increase is due primarily to (i) a
$27.7 million increase in self-storage net operating income, (ii) a
$12.9 million reduction in income allocated to preferred shareholders
due to redemptions, including PS Business Parks (“PSB”), and (iii) a
$7.1 million increase from foreign currency exchange gains, offset
partially by (iv) a $12.8 million reduction in gains on sale of real
estate assets, including discontinued operations and Shurgard Europe and
(v) a $6.6 million increase in depreciation.
Our self-storage net operating income increased $27.7 million in the
three months ended September 30, 2013 as compared to the same period in
2012, including $21.1 million for our Same Store Facilities and $6.6
million for our non-Same Store Facilities. Revenues for the Same Store
Facilities increased 5.5% or $22.9 million in the quarter ended
September 30, 2013 as compared to the same period in 2012, due to higher
realized annual rent per occupied square foot and higher average
occupancy. Cost of operations for the Same Store Facilities increased by
1.5% or $1.8 million in the quarter ended September 30, 2013 as compared
to the same period in 2012, due primarily to higher repairs and
maintenance and property tax expense, offset partially by lower
advertising and selling costs. The increase in net operating income for
the non-Same Store Facilities is due primarily to the impact of the
acquisition of 56 self-storage facilities since January 2012.
Operating Results for the Nine Months Ended
September 30, 2013
For the nine months ended September 30, 2013, net income allocable to
our common shareholders was $601.0 million or $3.48 per diluted common
share, compared to $460.2 million or $2.68 per diluted common share for
the same period in 2012, representing an increase of $140.8 million or
$0.80 per diluted common share. This increase is due primarily to an
$86.5 million increase in self-storage net operating income, combined
with a $56.9 million reduction in income allocated to preferred
shareholders due to redemptions, including PSB.
Our self-storage net operating income increased $86.5 million in the
nine months ended September 30, 2013 as compared to the same period in
2012, including $68.2 million for our Same Store Facilities and $18.3
million for our non-Same Store Facilities. Revenues for the Same Store
Facilities increased 5.3% or $64.5 million in the nine months ended
September 30, 2013 as compared to the same period in 2012, due to higher
realized annual rent per occupied square foot and higher average
occupancy. Cost of operations for the Same Store Facilities decreased by
1.0% or $3.8 million in the nine months ended September 30, 2013 as
compared to the same period in 2012, due primarily to lower repairs and
maintenance and advertising and selling costs, offset partially by
higher property tax expense. The increase in net operating income for
the non-Same Store Facilities is due primarily to the impact of the
acquisition of 56 self-storage facilities since January 2012.
Funds from Operations
For the three months ended September 30, 2013, funds from operations
(“FFO”) was $2.00 per diluted common share, as compared to $1.73 for the
same period in 2012, representing an increase of $0.27 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, 2013, FFO was $5.40 per diluted
common share, as compared to $4.46 for the same period in 2012,
representing an increase of $0.94 per share.
In addition to FFO, we often discuss “Core FFO” per share which is also
a non-GAAP measure that represents FFO per share, adjusted to exclude
the impact of (i) foreign currency exchange gains and losses, consisting
of a gain of $16.1 million and $9.3 million for the three and nine
months ended September 30, 2013, respectively (a gain of $9.0 million
and loss of $2.5 million for the same periods in 2012), (ii) the impact
of EITF D-42, including our equity share from PSB, representing charges
totaling $12.9 million and $56.9 million, respectively, for the three
and nine months ended September 30, 2012 (none for the same periods in
2013), and (iii) other items (including our equity share from PSB and
Shurgard Europe) such as facility closure charges, contingency accruals
and costs incurred in acquiring real estate facilities. We believe Core
FFO is a helpful measure in understanding our ongoing earnings and cash
flow. We also believe that the analyst community, likewise, reviews our
Core FFO and Core FFO per share (or similar measures using different
terminology). Core FFO is not a substitute for net income, earnings per
share or cash flow from operations. Because other real estate investment
trusts (“REITs”) may not compute Core FFO in the same manner as we do,
may not use the same terminology, or may not present such a measure,
Core FFO 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,
|
|
|
|
|
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|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
Percentage Change
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|
2013
|
|
|
|
|
|
2012
|
|
|
|
Percentage Change
|
FFO per share
|
|
|
|
|
$
|
2.00
|
|
|
|
|
$
|
1.73
|
|
|
|
|
15.6
|
%
|
|
|
|
$
|
5.40
|
|
|
|
|
$
|
4.46
|
|
|
|
21.1
|
%
|
Eliminate the per share impact of items excluded from Core FFO:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange (gain) loss
|
|
|
|
|
|
(0.09
|
)
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
0.01
|
|
|
|
|
Application of EITF D-42
|
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|
|
|
|
-
|
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
0.33
|
|
|
|
|
Other items
|
|
|
|
|
|
0.01
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.02
|
|
|
|
|
Core FFO per share
|
|
|
|
|
$
|
1.92
|
|
|
|
|
$
|
1.76
|
|
|
|
|
9.1
|
%
|
|
|
|
$
|
5.36
|
|
|
|
|
$
|
4.82
|
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2011 and
therefore provide meaningful comparisons for 2012 and 2013. The
following table summarizes the historical operating results of these
1,949 facilities (122.8 million net rentable square feet) that represent
approximately 91% of the aggregate net rentable square feet of our U.S.
consolidated self-storage portfolio at September 30, 2013.
Selected Operating Data for the Same Store Facilities
(1,949 facilities) (unaudited):
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
Percentage Change
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
Percentage Change
|
|
|
|
|
|
(Dollar amounts in thousands, except for weighted average data)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
|
|
$
|
419,022
|
|
|
|
$
|
396,879
|
|
|
|
5.6
|
%
|
|
|
$
|
1,207,932
|
|
|
|
$
|
1,145,517
|
|
|
|
5.4
|
%
|
Late charges and administrative fees
|
|
|
|
|
|
21,989
|
|
|
|
|
21,206
|
|
|
|
3.7
|
%
|
|
|
|
62,829
|
|
|
|
|
60,792
|
|
|
|
3.4
|
%
|
Total revenues (a)
|
|
|
|
|
|
441,011
|
|
|
|
|
418,085
|
|
|
|
5.5
|
%
|
|
|
|
1,270,761
|
|
|
|
|
1,206,309
|
|
|
|
5.3
|
%
|
Cost of operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes
|
|
|
|
|
|
43,652
|
|
|
|
|
40,703
|
|
|
|
7.2
|
%
|
|
|
|
132,441
|
|
|
|
|
125,896
|
|
|
|
5.2
|
%
|
On-site property manager payroll
|
|
|
|
|
|
24,567
|
|
|
|
|
24,797
|
|
|
|
(0.9
|
)%
|
|
|
|
75,791
|
|
|
|
|
75,276
|
|
|
|
0.7
|
%
|
Supervisory payroll (b)
|
|
|
|
|
|
8,303
|
|
|
|
|
8,229
|
|
|
|
0.9
|
%
|
|
|
|
26,088
|
|
|
|
|
25,766
|
|
|
|
1.2
|
%
|
Repairs and maintenance
|
|
|
|
|
|
9,689
|
|
|
|
|
8,500
|
|
|
|
14.0
|
%
|
|
|
|
29,599
|
|
|
|
|
31,178
|
|
|
|
(5.1
|
)%
|
Utilities
|
|
|
|
|
|
10,045
|
|
|
|
|
10,194
|
|
|
|
(1.5
|
)%
|
|
|
|
27,862
|
|
|
|
|
27,942
|
|
|
|
(0.3
|
)%
|
Advertising and selling expense
|
|
|
|
|
|
8,385
|
|
|
|
|
10,216
|
|
|
|
(17.9
|
)%
|
|
|
|
22,250
|
|
|
|
|
31,333
|
|
|
|
(29.0
|
)%
|
Other direct property costs (c)
|
|
|
|
|
|
12,259
|
|
|
|
|
12,775
|
|
|
|
(4.0
|
)%
|
|
|
|
37,299
|
|
|
|
|
37,570
|
|
|
|
(0.7
|
)%
|
Allocated overhead (d)
|
|
|
|
|
|
7,898
|
|
|
|
|
7,573
|
|
|
|
4.3
|
%
|
|
|
|
27,413
|
|
|
|
|
27,563
|
|
|
|
(0.5
|
)%
|
Total cost of operations (a)
|
|
|
|
|
|
124,798
|
|
|
|
|
122,987
|
|
|
|
1.5
|
%
|
|
|
|
378,743
|
|
|
|
|
382,524
|
|
|
|
(1.0
|
)%
|
Net operating income (e)
|
|
|
|
|
$
|
316,213
|
|
|
|
$
|
295,098
|
|
|
|
7.2
|
%
|
|
|
$
|
892,018
|
|
|
|
$
|
823,785
|
|
|
|
8.3
|
%
|
Gross margin
|
|
|
|
|
|
71.7
|
%
|
|
|
|
70.6
|
%
|
|
|
1.6
|
%
|
|
|
|
70.2
|
%
|
|
|
|
68.3
|
%
|
|
|
2.8
|
%
|
Weighted average for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Square foot occupancy (f)
|
|
|
|
|
|
94.4
|
%
|
|
|
|
93.0
|
%
|
|
|
1.5
|
%
|
|
|
|
93.4
|
%
|
|
|
|
91.9
|
%
|
|
|
1.6
|
%
|
Realized annual rental income per:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupied square foot (g)
|
|
|
|
|
$
|
14.46
|
|
|
|
$
|
13.90
|
|
|
|
4.0
|
%
|
|
|
$
|
14.04
|
|
|
|
$
|
13.53
|
|
|
|
3.8
|
%
|
Available square foot (“REVPAF”) (g)
|
|
|
|
|
$
|
13.65
|
|
|
|
$
|
12.93
|
|
|
|
5.6
|
%
|
|
|
$
|
13.11
|
|
|
|
$
|
12.44
|
|
|
|
5.4
|
%
|
Weighted average at September 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Square foot occupancy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93.6
|
%
|
|
|
|
92.5
|
%
|
|
|
1.2
|
%
|
Annual contract rent per occupied square foot (h)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15.20
|
|
|
|
$
|
14.64
|
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
Supervisory payroll expense represents compensation paid to
management personnel who directly and indirectly supervise on-site
property managers.
|
|
|
|
|
(c)
|
|
|
Other direct property costs include administrative expenses that are
solely attributable to the self-storage facilities, such as property
insurance, business license costs, bank charges related to
processing the properties’ cash receipts, credit card fees, and the
cost of operating each property’s rental office including supplies
and telephone data communication lines.
|
|
|
|
|
(d)
|
|
|
Allocated overhead represents administrative expenses for shared
general corporate functions, which are allocated to self-storage
property operations to the extent their efforts are devoted to
self-storage operations. Such functions include data processing,
human resources, operational accounting and finance, marketing and
costs of senior executives (other than the Chief Executive Officer
and Chief Financial Officer, whose compensation is allocated to
general and administrative expense).
|
|
|
|
|
(e)
|
|
|
See attached reconciliation of Same Store NOI to operating income.
|
|
|
|
|
(f)
|
|
|
Square foot occupancies represent weighted average occupancy levels
over the entire period.
|
|
|
|
|
(g)
|
|
|
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.
|
|
|
|
|
(h)
|
|
|
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):
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
June 30
|
|
|
|
September 30
|
|
|
|
December 31
|
|
|
|
Full Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues (in 000’s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
409,604
|
|
|
|
|
$
|
420,146
|
|
|
|
|
$
|
441,011
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
388,499
|
|
|
|
|
$
|
399,725
|
|
|
|
|
$
|
418,085
|
|
|
|
|
$
|
410,489
|
|
|
|
|
$
|
1,616,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of operations (in 000’s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
131,358
|
|
|
|
|
$
|
122,587
|
|
|
|
|
$
|
124,798
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
134,411
|
|
|
|
|
$
|
125,126
|
|
|
|
|
$
|
122,987
|
|
|
|
|
$
|
102,936
|
|
|
|
|
$
|
485,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes (in 000’s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
44,758
|
|
|
|
|
$
|
44,031
|
|
|
|
|
$
|
43,652
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
43,142
|
|
|
|
|
$
|
42,051
|
|
|
|
|
$
|
40,703
|
|
|
|
|
$
|
26,295
|
|
|
|
|
$
|
152,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repairs and maintenance (in 000’s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
10,824
|
|
|
|
|
$
|
9,086
|
|
|
|
|
$
|
9,689
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
12,235
|
|
|
|
|
$
|
10,443
|
|
|
|
|
$
|
8,500
|
|
|
|
|
$
|
8,901
|
|
|
|
|
$
|
40,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and selling expenses (in 000’s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
7,453
|
|
|
|
|
$
|
6,412
|
|
|
|
|
$
|
8,385
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
10,531
|
|
|
|
|
$
|
10,586
|
|
|
|
|
$
|
10,216
|
|
|
|
|
$
|
7,538
|
|
|
|
|
$
|
38,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAF:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
12.67
|
|
|
|
|
$
|
13.02
|
|
|
|
|
$
|
13.65
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
12.01
|
|
|
|
|
$
|
12.37
|
|
|
|
|
$
|
12.93
|
|
|
|
|
$
|
12.73
|
|
|
|
|
$
|
12.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average realized annual rent per occupied square foot:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
$
|
13.79
|
|
|
|
|
$
|
13.85
|
|
|
|
|
$
|
14.46
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
$
|
13.30
|
|
|
|
|
$
|
13.39
|
|
|
|
|
$
|
13.90
|
|
|
|
|
$
|
13.83
|
|
|
|
|
$
|
13.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average occupancy levels:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
91.9
|
%
|
|
|
|
|
94.0
|
%
|
|
|
|
|
94.4
|
%
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
90.3
|
%
|
|
|
|
|
92.4
|
%
|
|
|
|
|
93.0
|
%
|
|
|
|
|
92.1
|
%
|
|
|
|
|
91.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing and Capital Activities
During the three months ended September 30, 2013, we acquired 29 storage
facilities with approximately 2.2 million net rentable square feet
located in California, Florida, Massachusetts, Rhode Island, and Texas
for approximately $371 million in cash. This brings our total
acquisitions to 32 facilities year to date through September 30, 2013
for $392 million (2.5 million net rentable square feet).
In October 2013, we acquired 44 storage facilities with approximately
2.8 million net rentable square feet for approximately $324 million. We
are currently under contract to acquire another 44 facilities with
approximately 2.7 million square feet for approximately $430 million,
which we anticipate will close during December 2013. These 88 facilities
are located in California, Colorado, Florida, Georgia, North Carolina,
South Carolina, Texas, and Virginia.
During the three months ended September 30, 2013, we completed the
expansion to our Bronx, NY facility adding 209,000 net rentable square
feet at a cost of approximately $20 million. As of September 30, 2013,
we have development and expansion projects which will add approximately
1.6 million net rentable square feet of storage space at a total cost of
approximately $188 million. A total of $46 million in costs were
incurred through September 30, 2013, with the remaining costs expected
to be incurred primarily in the last three months of 2013 and in 2014.
We have a variety of possibilities to finance our acquisition and
development activities which may include common equity, debt or some
combination of both combined with our retained operating cash flow. We
do not expect to issue preferred stock at this time due to market
conditions. In addition, we expect our joint venture partner in Shurgard
Europe to purchase 51% of our note receivable from Shurgard Europe
during the three months ended December 31, 2013, which was $214 million
based upon the balance outstanding and exchange rates at September 30,
2013.
Distributions Declared
On October 31, 2013, our Board of Trustees declared a regular common
quarterly dividend of $1.40 per common share which is an increase of
$0.15 per share, or 12% over the previous quarter’s distribution. The
Board also declared dividends with respect to our various series of
preferred shares. All the dividends are payable on December 30, 2013 to
shareholders of record as of December 13, 2013.
Third Quarter Conference Call
A conference call is scheduled for November 1, 2013 at 8:00 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
75634248). A simultaneous audio web cast may be accessed by using the
link at www.publicstorage.com
under “Company Info, Investor Relations, Upcoming Events.” A replay of
the conference call may be accessed through November 15, 2013 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, Webcasts.” All forms of replay
utilize conference ID number 75634248.
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, 2013, we had interests in 2,110
self-storage facilities located in 38 states with approximately 135
million net rentable square feet in the United States and 188 storage
facilities located in seven Western European nations with approximately
ten million net rentable square feet operated under the “Shurgard”
brand. We also own a 43% common equity interest in PS Business Parks,
Inc. (NYSE:PSB) which owned and operated approximately 28.6 million
rentable square feet of commercial space, primarily flex, multitenant
office and industrial space, at September 30, 2013.
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, 2012, 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 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; risks associated with a
possible failure by us to qualify as a REIT under the Internal Revenue
Code of 1986, as amended; disruptions or shutdowns of our automated
processes and systems; 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; 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
(Unaudited - amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
Operating Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Self-storage facilities
|
|
|
|
|
$
|
477,978
|
|
|
|
|
$
|
445,169
|
|
|
|
|
$
|
1,369,219
|
|
|
|
|
$
|
1,279,788
|
|
Ancillary operations
|
|
|
|
|
|
33,979
|
|
|
|
|
|
32,013
|
|
|
|
|
|
99,016
|
|
|
|
|
|
93,022
|
|
|
|
|
|
|
|
511,957
|
|
|
|
|
|
477,182
|
|
|
|
|
|
1,468,235
|
|
|
|
|
|
1,372,810
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Self-storage cost of operations
|
|
|
|
|
|
136,751
|
|
|
|
|
|
131,618
|
|
|
|
|
|
409,881
|
|
|
|
|
|
406,913
|
|
Ancillary cost of operations
|
|
|
|
|
|
11,052
|
|
|
|
|
|
9,857
|
|
|
|
|
|
30,882
|
|
|
|
|
|
29,156
|
|
Depreciation and amortization
|
|
|
|
|
|
96,537
|
|
|
|
|
|
89,897
|
|
|
|
|
|
278,475
|
|
|
|
|
|
265,195
|
|
General and administrative
|
|
|
|
|
|
17,650
|
|
|
|
|
|
15,298
|
|
|
|
|
|
49,988
|
|
|
|
|
|
44,117
|
|
|
|
|
|
|
|
261,990
|
|
|
|
|
|
246,670
|
|
|
|
|
|
769,226
|
|
|
|
|
|
745,381
|
|
Operating income
|
|
|
|
|
|
249,967
|
|
|
|
|
|
230,512
|
|
|
|
|
|
699,009
|
|
|
|
|
|
627,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
|
|
|
|
5,608
|
|
|
|
|
|
5,444
|
|
|
|
|
|
16,705
|
|
|
|
|
|
16,639
|
|
Interest expense
|
|
|
|
|
|
(478
|
)
|
|
|
|
|
(4,926
|
)
|
|
|
|
|
(4,622
|
)
|
|
|
|
|
(15,327
|
)
|
Equity in earnings of unconsolidated real estate entities
|
|
|
|
|
|
14,269
|
|
|
|
|
|
12,642
|
|
|
|
|
|
39,013
|
|
|
|
|
|
30,353
|
|
Gain on disposition of real estate investments
|
|
|
|
|
|
168
|
|
|
|
|
|
193
|
|
|
|
|
|
168
|
|
|
|
|
|
1,456
|
|
Foreign currency exchange gain (loss)
|
|
|
|
|
|
16,094
|
|
|
|
|
|
9,019
|
|
|
|
|
|
9,281
|
|
|
|
|
|
(2,481
|
)
|
Income from continuing operations
|
|
|
|
|
|
285,628
|
|
|
|
|
|
252,884
|
|
|
|
|
|
759,554
|
|
|
|
|
|
658,069
|
|
Discontinued operations
|
|
|
|
|
|
-
|
|
|
|
|
|
11,935
|
|
|
|
|
|
-
|
|
|
|
|
|
12,403
|
|
Net income
|
|
|
|
|
|
285,628
|
|
|
|
|
|
264,819
|
|
|
|
|
|
759,554
|
|
|
|
|
|
670,472
|
|
Allocation to noncontrolling interests
|
|
|
|
|
|
(1,430
|
)
|
|
|
|
|
(927
|
)
|
|
|
|
|
(3,670
|
)
|
|
|
|
|
(2,585
|
)
|
Net income allocable to Public Storage shareholders
|
|
|
|
|
|
284,198
|
|
|
|
|
|
263,892
|
|
|
|
|
|
755,884
|
|
|
|
|
|
667,887
|
|
Allocation of net income to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred shareholders - distributions
|
|
|
|
|
|
(51,907
|
)
|
|
|
|
|
(49,267
|
)
|
|
|
|
|
(152,404
|
)
|
|
|
|
|
(156,272
|
)
|
Preferred shareholders - redemptions
|
|
|
|
|
|
-
|
|
|
|
|
|
(11,350
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(49,677
|
)
|
Restricted share units
|
|
|
|
|
|
(930
|
)
|
|
|
|
|
(810
|
)
|
|
|
|
|
(2,498
|
)
|
|
|
|
|
(1,787
|
)
|
Net income allocable to common shareholders
|
|
|
|
|
$
|
231,361
|
|
|
|
|
$
|
202,465
|
|
|
|
|
$
|
600,982
|
|
|
|
|
$
|
460,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share – Basic
|
|
|
|
|
$
|
1.35
|
|
|
|
|
$
|
1.19
|
|
|
|
|
$
|
3.50
|
|
|
|
|
$
|
2.70
|
|
Net income per common share – Diluted
|
|
|
|
|
$
|
1.34
|
|
|
|
|
$
|
1.18
|
|
|
|
|
$
|
3.48
|
|
|
|
|
$
|
2.68
|
|
Weighted average common shares - Basic
|
|
|
|
|
|
171,721
|
|
|
|
|
|
170,576
|
|
|
|
|
|
171,597
|
|
|
|
|
|
170,460
|
|
Weighted average common shares - Diluted
|
|
|
|
|
|
172,793
|
|
|
|
|
|
171,700
|
|
|
|
|
|
172,651
|
|
|
|
|
|
171,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PUBLIC STORAGE
SELECTED BALANCE SHEET DATA
(Amounts in thousands, except share and per share data)
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
December 31, 2012
|
ASSETS
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
56,965
|
|
|
|
|
$
|
17,239
|
|
Operating real estate facilities:
|
|
|
|
|
|
|
|
|
|
Land and buildings, at cost
|
|
|
|
|
|
11,533,334
|
|
|
|
|
|
11,033,819
|
|
Accumulated depreciation
|
|
|
|
|
|
(4,004,681
|
)
|
|
|
|
|
(3,738,130
|
)
|
|
|
|
|
|
|
7,528,653
|
|
|
|
|
|
7,295,689
|
|
Construction in process
|
|
|
|
|
|
46,039
|
|
|
|
|
|
36,243
|
|
Investment in unconsolidated real estate entities
|
|
|
|
|
|
766,489
|
|
|
|
|
|
735,323
|
|
Goodwill and other intangible assets, net
|
|
|
|
|
|
217,023
|
|
|
|
|
|
209,374
|
|
Loan receivable from unconsolidated real estate entity
|
|
|
|
|
|
420,441
|
|
|
|
|
|
410,995
|
|
Other assets
|
|
|
|
|
|
114,330
|
|
|
|
|
|
88,540
|
|
Total assets
|
|
|
|
|
$
|
9,149,940
|
|
|
|
|
$
|
8,793,403
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
Borrowings on bank credit facility
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
133,000
|
|
Notes payable
|
|
|
|
|
|
100,118
|
|
|
|
|
|
335,828
|
|
Accrued and other liabilities
|
|
|
|
|
|
243,033
|
|
|
|
|
|
201,711
|
|
Total liabilities
|
|
|
|
|
|
343,151
|
|
|
|
|
|
670,539
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
Public Storage shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
Cumulative Preferred Shares, $0.01 par value, 100,000,000 shares authorized,
142,500 shares issued (in series) and outstanding (113,500 at
December 31, 2012), at liquidation preference
|
|
|
|
|
|
3,562,500
|
|
|
|
|
|
2,837,500
|
|
Common Shares, $0.10 par value, 650,000,000 shares authorized, 171,760,994
shares issued and outstanding (171,388,286 at December 31,
2012)
|
|
|
|
|
|
17,176
|
|
|
|
|
|
17,139
|
|
Paid-in capital
|
|
|
|
|
|
5,525,639
|
|
|
|
|
|
5,519,596
|
|
Accumulated deficit
|
|
|
|
|
|
(321,890
|
)
|
|
|
|
|
(279,474
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(4,481
|
)
|
|
|
|
|
(1,005
|
)
|
Total Public Storage shareholders’ equity
|
|
|
|
|
|
8,778,944
|
|
|
|
|
|
8,093,756
|
|
Permanent noncontrolling interests
|
|
|
|
|
|
27,845
|
|
|
|
|
|
29,108
|
|
Total equity
|
|
|
|
|
|
8,806,789
|
|
|
|
|
|
8,122,864
|
|
Total liabilities and equity
|
|
|
|
|
$
|
9,149,940
|
|
|
|
|
$
|
8,793,403
|
|
|
|
|
|
|
|
|
|
|
|
Shurgard Europe Same Store Selected Operating
Data
The Shurgard Europe Same Store Pool represents Shurgard Europe’s 163
facilities (8.7 million net rentable square feet) that have been
operated on a stabilized basis since January 1, 2011 and therefore
provide meaningful comparisons for 2012 and 2013. These 163 facilities
represent approximately 86% of the aggregate net rentable square feet of
Shurgard Europe’s self-storage portfolio. Our pro-rata share of the
operating results for these facilities is included in “equity in
earnings of unconsolidated real estate entities” on our income statement.
Selected Operating Data for the Shurgard Europe
Same Store Pool (163 facilities) (unaudited):
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
Percentage Change
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
Percentage Change
|
|
|
|
|
|
(Dollar amounts in thousands, except weighted average data, utilizing
constant exchange rates (a))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income, late charges and administrative fees
|
|
|
|
|
$
|
47,998
|
|
|
|
|
$
|
49,199
|
|
|
|
|
(2.4
|
)%
|
|
|
|
$
|
141,340
|
|
|
|
|
$
|
144,925
|
|
|
|
|
(2.5
|
)%
|
Cost of operations
|
|
|
|
|
|
19,732
|
|
|
|
|
|
19,913
|
|
|
|
|
(0.9
|
)%
|
|
|
|
|
60,523
|
|
|
|
|
|
60,941
|
|
|
|
|
(0.7
|
)%
|
Net operating income
|
|
|
|
|
$
|
28,266
|
|
|
|
|
$
|
29,286
|
|
|
|
|
(3.5
|
)%
|
|
|
|
$
|
80,817
|
|
|
|
|
$
|
83,984
|
|
|
|
|
(3.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
|
|
58.9
|
%
|
|
|
|
|
59.5
|
%
|
|
|
|
(1.0
|
)%
|
|
|
|
|
57.2
|
%
|
|
|
|
|
57.9
|
%
|
|
|
|
(1.2
|
)%
|
Weighted average for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Square foot occupancy (b)
|
|
|
|
|
|
81.5
|
%
|
|
|
|
|
83.6
|
%
|
|
|
|
(2.5
|
)%
|
|
|
|
|
80.7
|
%
|
|
|
|
|
83.5
|
%
|
|
|
|
(3.4
|
)%
|
Realized annual rent, prior to late charges and administrative fees,
per:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupied square foot (c)
|
|
|
|
|
$
|
26.70
|
|
|
|
|
$
|
26.75
|
|
|
|
|
(0.2
|
)%
|
|
|
|
$
|
26.50
|
|
|
|
|
$
|
26.28
|
|
|
|
|
0.8
|
%
|
Available square foot (“REVPAF”) (c)
|
|
|
|
|
$
|
21.76
|
|
|
|
|
$
|
22.37
|
|
|
|
|
(2.7
|
)%
|
|
|
|
$
|
21.39
|
|
|
|
|
$
|
21.94
|
|
|
|
|
(2.5
|
)%
|
Average Euro to U.S. Dollar exchange rates: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant exchange rates used herein
|
|
|
|
|
|
1.324
|
|
|
|
|
|
1.324
|
|
|
|
|
-
|
|
|
|
|
|
1.317
|
|
|
|
|
|
1.317
|
|
|
|
|
-
|
|
Actual historical exchange rates
|
|
|
|
|
|
1.324
|
|
|
|
|
|
1.251
|
|
|
|
|
5.8
|
%
|
|
|
|
|
1.317
|
|
|
|
|
|
1.282
|
|
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
In order to isolate changes in the underlying operations from the
impact of exchange rates, the amounts in this table are presented on
a constant exchange rate basis. The amounts for the three and nine
months ended September 30, 2012 have been restated using the actual
exchange rates for the three and nine months ended September 30,
2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Square foot occupancies represent weighted average occupancy levels
over the entire period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
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 September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
Computation of FFO per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
285,628
|
|
|
|
|
$
|
264,819
|
|
|
|
|
$
|
759,554
|
|
|
|
|
$
|
670,472
|
|
Adjust for amounts not included in FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, including amounts in discontinued
operations
|
|
|
|
|
96,537
|
|
|
|
|
|
89,991
|
|
|
|
|
|
278,475
|
|
|
|
|
|
265,517
|
|
Depreciation from unconsolidated real estate investments
|
|
|
|
|
18,708
|
|
|
|
|
|
18,391
|
|
|
|
|
|
55,769
|
|
|
|
|
|
56,955
|
|
Gains on sale of real estate investments
|
|
|
|
|
(168
|
)
|
|
|
|
|
(13,010
|
)
|
|
|
|
|
(168
|
)
|
|
|
|
|
(14,273
|
)
|
FFO allocable to equity holders
|
|
|
|
|
400,705
|
|
|
|
|
|
360,191
|
|
|
|
|
|
1,093,630
|
|
|
|
|
|
978,671
|
|
Less allocation of FFO to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling equity interests
|
|
|
|
|
(1,938
|
)
|
|
|
|
|
(1,730
|
)
|
|
|
|
|
(5,339
|
)
|
|
|
|
|
(4,950
|
)
|
Preferred shareholders - distributions
|
|
|
|
|
(51,907
|
)
|
|
|
|
|
(49,267
|
)
|
|
|
|
|
(152,404
|
)
|
|
|
|
|
(156,272
|
)
|
Preferred shareholders - redemptions
|
|
|
|
|
-
|
|
|
|
|
|
(11,350
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(49,677
|
)
|
Restricted share unitholders
|
|
|
|
|
(1,401
|
)
|
|
|
|
|
(1,198
|
)
|
|
|
|
|
(3,802
|
)
|
|
|
|
|
(2,990
|
)
|
FFO allocable to common shares (a)
|
|
|
|
$
|
345,459
|
|
|
|
|
$
|
296,646
|
|
|
|
|
$
|
932,085
|
|
|
|
|
$
|
764,782
|
|
Diluted weighted average common shares
|
|
|
|
|
172,793
|
|
|
|
|
|
171,700
|
|
|
|
|
|
172,651
|
|
|
|
|
|
171,558
|
|
FFO per share (a)
|
|
|
|
$
|
2.00
|
|
|
|
|
$
|
1.73
|
|
|
|
|
$
|
5.40
|
|
|
|
|
$
|
4.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Funds Available for
Distribution (“FAD”):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO allocable to common shares
|
|
|
|
$
|
345,459
|
|
|
|
|
$
|
296,646
|
|
|
|
|
$
|
932,085
|
|
|
|
|
$
|
764,782
|
|
Eliminate effect of items included in FFO but not FAD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation expense
|
|
|
|
|
8,592
|
|
|
|
|
|
7,111
|
|
|
|
|
|
21,491
|
|
|
|
|
|
18,394
|
|
Foreign currency exchange (gain) loss
|
|
|
|
|
(16,094
|
)
|
|
|
|
|
(9,019
|
)
|
|
|
|
|
(9,281
|
)
|
|
|
|
|
2,481
|
|
Application of EITF D-42
|
|
|
|
|
-
|
|
|
|
|
|
12,941
|
|
|
|
|
|
-
|
|
|
|
|
|
56,856
|
|
Less: Capital expenditures to maintain real estate facilities
|
|
|
|
|
(23,119
|
)
|
|
|
|
|
(18,344
|
)
|
|
|
|
|
(55,883
|
)
|
|
|
|
|
(58,642
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAD
|
|
|
|
$
|
314,838
|
|
|
|
|
$
|
289,335
|
|
|
|
|
$
|
888,412
|
|
|
|
|
$
|
783,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions paid to common shareholders
|
|
|
|
$
|
214,685
|
|
|
|
|
$
|
187,629
|
|
|
|
|
$
|
643,699
|
|
|
|
|
$
|
562,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution payout ratio
|
|
|
|
|
68.2
|
%
|
|
|
|
|
64.8
|
%
|
|
|
|
|
72.5
|
%
|
|
|
|
|
71.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions per common share
|
|
|
|
$
|
1.25
|
|
|
|
|
$
|
1.10
|
|
|
|
|
$
|
3.75
|
|
|
|
|
$
|
3.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
FFO is a non-GAAP 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. We present FFO and FFO per share because we
consider FFO to be an important measure of the performance of real
estate companies, as do many analysts in evaluating our Company. We
believe that FFO is a helpful measure of a REIT’s performance since
FFO excludes depreciation, which is included in computing net income
and assumes the value of real estate diminishes predictably over
time. We believe that real estate values fluctuate due to market
conditions and in response to inflation. FFO computations do not
consider scheduled principal payments on debt, capital improvements,
distributions and other obligations of the Company. FFO and FFO per
share are not a substitute for our cash flow or net income per share
as a measure of our liquidity or operating performance or our
ability to pay dividends. Because other REITs may not compute FFO in
the same manner, FFO may not be comparable among REITs.
|
|
|
|
|
|
|
PUBLIC STORAGE
SELECTED FINANCIAL DATA
Reconciliation of Same Store Data and Self-Storage Net
Operating Income to
Operating Income
(Unaudited – amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Facilities
|
|
|
|
|
$
|
441,011
|
|
|
|
|
$
|
418,085
|
|
|
|
|
$
|
1,270,761
|
|
|
|
|
$
|
1,206,309
|
|
Non Same Store Facilities (a)
|
|
|
|
|
|
36,967
|
|
|
|
|
|
27,084
|
|
|
|
|
|
98,458
|
|
|
|
|
|
73,479
|
|
Self-storage revenues
|
|
|
|
|
|
477,978
|
|
|
|
|
|
445,169
|
|
|
|
|
|
1,369,219
|
|
|
|
|
|
1,279,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Self-storage cost of operations for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Facilities
|
|
|
|
|
|
124,798
|
|
|
|
|
|
122,987
|
|
|
|
|
|
378,743
|
|
|
|
|
|
382,524
|
|
Non Same Store Facilities (a)
|
|
|
|
|
|
11,953
|
|
|
|
|
|
8,631
|
|
|
|
|
|
31,138
|
|
|
|
|
|
24,389
|
|
Self-storage cost of operations
|
|
|
|
|
|
136,751
|
|
|
|
|
|
131,618
|
|
|
|
|
|
409,881
|
|
|
|
|
|
406,913
|
|
Net operating income for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Facilities
|
|
|
|
|
|
316,213
|
|
|
|
|
|
295,098
|
|
|
|
|
|
892,018
|
|
|
|
|
|
823,785
|
|
Non Same Store Facilities (a)
|
|
|
|
|
|
25,014
|
|
|
|
|
|
18,453
|
|
|
|
|
|
67,320
|
|
|
|
|
|
49,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Self-storage net operating income (b)
|
|
|
|
|
|
341,227
|
|
|
|
|
|
313,551
|
|
|
|
|
|
959,338
|
|
|
|
|
|
872,875
|
|
Ancillary revenues
|
|
|
|
|
|
33,979
|
|
|
|
|
|
32,013
|
|
|
|
|
|
99,016
|
|
|
|
|
|
93,022
|
|
Ancillary cost of operations
|
|
|
|
|
|
(11,052
|
)
|
|
|
|
|
(9,857
|
)
|
|
|
|
|
(30,882
|
)
|
|
|
|
|
(29,156
|
)
|
Depreciation and amortization
|
|
|
|
|
|
(96,537
|
)
|
|
|
|
|
(89,897
|
)
|
|
|
|
|
(278,475
|
)
|
|
|
|
|
(265,195
|
)
|
General and administrative expense
|
|
|
|
|
|
(17,650
|
)
|
|
|
|
|
(15,298
|
)
|
|
|
|
|
(49,988
|
)
|
|
|
|
|
(44,117
|
)
|
Operating income on our income statement
|
|
|
|
|
$
|
249,967
|
|
|
|
|
$
|
230,512
|
|
|
|
|
$
|
699,009
|
|
|
|
|
$
|
627,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
We have 148 additional self-storage facilities that are not Same
Store Facilities. In the nine months ended September 30, 2013, we
acquired 32 self-storage facilities for an aggregate of
approximately $392 million in cash. Included in the table above for
the three and nine months ended September 30, 2013 are revenues
totaling $3,926,000 and $4,303,000, respectively, and cost of
operations totaling $1,704,000 and $1,864,000, respectively, for
these 32 self-storage facilities.
|
|
|
|
|
(b)
|
|
|
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.
|
Copyright Business Wire 2013