GLENDALE, Calif.--(BUSINESS WIRE)--
Public Storage (NYSE:PSA) announced today operating results for the
fourth quarter ended December 31, 2008.
Operating Results for the Three Months
Ended December 31, 2008:
Net income for the three months ended December 31, 2008 was $151.7
million compared to $167.9 million for the same period in 2007,
representing a decrease of $16.2 million. This decrease is primarily due
to the impact of a $13.2 million foreign exchange loss during the
quarter ended December 31, 2008 as compared to a foreign currency
exchange gain of $16.3 million in the same period in 2007, offset by a
reduction in amortization of intangible assets and improvements in
operating income with respect to our domestic self-storage facilities.
The foreign currency exchange gains and losses relate primarily to a
Euro denominated loan receivable from Shurgard Europe. The foreign
currency gains and losses were due to changes in the value of the U.S.
Dollar relative to the Euro during each period when converting this Euro
denominated loan to U.S. Dollars for financial reporting purposes. See
"Shurgard Europe" below for further information.
Net operating income with respect to our domestic operations increased
$11.8 million in the three months ended December 31, 2008 as compared to
the same period in 2007 due to an increase of $6.5 million with respect
to our domestic same-store operations combined with an increase of $5.3
million with respect to our non-stabilized facilities.
For the three months ended December 31, 2008 and 2007, we allocated
$24.9 million and $60.3 million, respectively, of our net income to our
preferred shareholders, representing a decrease of $35.4 million. This
decrease is primarily due to preferred share repurchases that we
completed in the fourth quarter of 2008 at an aggregate cost that was
$33.9 million less than the original net proceeds from the issuance of
such shares. This benefit to our common shareholders did not impact our
net income, but has been reflected as a reduction in the allocation of
net income to our preferred shareholders and a corresponding increase in
the allocation of net income to our common shareholders (see "Share
Repurchases and Debt Tender" below).
For the three months ended December 31, 2008, net income allocable to
our common shareholders (after allocating net income to our preferred
and equity shareholders) was $121.7 million or $0.72 per common share on
a diluted basis compared to $102.2 million or $0.60 per common share for
the same period in 2007, representing an increase of $19.5 million or
$0.12 per common share on a diluted basis. These increases are due
primarily to the aforementioned reduction in the allocation of net
income to our preferred shareholders and corresponding increase in
allocation to our common shareholders of $33.9 million in connection
with the repurchase of preferred securities, offset by the
aforementioned decline in our net income.
Weighted average diluted common shares were 168,565,000 and 170,089,000,
respectively, for the three months ended December 31, 2008 and 2007. The
decline is due to common share repurchases in the first quarter of 2008.
Operating Results for the Year Ended
December 31, 2008:
Net income for the year ended December 31, 2008 was $935.2 million
compared to $457.5 million for the same period in 2007, representing an
improvement of $477.7 million. This improvement is primarily due to a
gain of $344.7 million recognized on the disposition of a 51% interest
in Shurgard Europe on March 31, 2008, improvements in net operating
income with respect to our domestic self-storage facilities and a
reduction in amortization of intangible assets, offset by a foreign
currency exchange loss of $25.4 million for the year ended December 31,
2008 as compared to a foreign exchange gain of $58.4 million in 2007.
Net operating income with respect to our domestic operations increased
$49.7 million in the year ended December 31, 2008 as compared to 2007
due to an increase of $28.7 million with respect to our same-store
operations combined with an increase of $21.0 million with respect to
our non-stabilized facilities.
For the years ended December 31, 2008 and 2007, we allocated $205.9
million and $236.8 million of our net income, respectively, to our
preferred shareholders. The year-over-year decrease is due primarily to
the aforementioned reduction in the allocation of net income to our
preferred shareholders and corresponding increase in allocation to our
common shareholders of $33.9 million in connection with repurchases of
preferred securities.
For the year ended December 31, 2008, net income allocable to our common
shareholders (after allocating net income to our preferred and equity
shareholders) was $708.1 million or $4.19 per common share on a diluted
basis compared to $199.4 million or $1.17 per common share for the same
period in 2007, representing an improvement of $508.7 million or $3.02
per common share. These increases are due primarily to the
aforementioned reduction in the allocation of net income to our
preferred shareholders in connection with the repurchase of securities,
along with the impact of the factors described above with respect to the
increase in our net income.
Weighted average diluted common shares were 168,883,000 and 170,147,000,
respectively, for the years ended December 31, 2008 and 2007. The
decline is due primarily to common share repurchases in the first
quarter of 2008.
Funds from Operations:
For the three months ended December 31, 2008, funds from operations
("FFO") increased to $1.49 per common share on a diluted basis as
compared to $1.40 per common share for the same period in 2007,
representing an increase of $0.09 per common share or 6.4%. For the year
ended December 31, 2008, FFO was $5.07 per common share on a diluted
basis as compared to $4.97 per common share in 2007, representing an
increase of $0.10 per common share or 2.0%.
For the three months ended December 31, 2008, FFO was impacted by (i) a
foreign currency exchange loss totaling $13.2 million (compared to a
gain of $16.3 million for the same period in 2007), (ii) a change in
accounting estimate with respect to our tenant insurance operations
resulting in a $1.2 million increase to ancillary operating expenses,
(iii) a reduction in the allocation of net income to our preferred
shareholders pursuant to the aforementioned preferred share repurchases,
combined with our equity share of PSB's preferred stock repurchases,
aggregating $35.8 million, and (iv) write-offs of development costs for
cancelled projects included in general and administrative expense
totaling $1.5 million, along with our equity share of Shurgard Europe's
development cost write-offs totaling $1.2 million.
For the year ended December 31, 2008, FFO has been impacted by (i) a
foreign currency exchange loss totaling $25.4 million (a gain of $58.4
million for 2007), (ii) changes in accounting estimates associated with
our tenant insurance operations resulting in a $5.8 million reduction in
ancillary operating expenses, (iii) the aforementioned reduction in the
allocation of net income to our preferred shareholders combined with our
equity share of PSB's preferred stock repurchases of $35.8 million, (iv)
write-offs of development costs for cancelled projects included in
general and administrative expense totaling $1.5 million ($2.1 million
for 2007), along with our equity share of Shurgard Europe's development
cost write-offs totaling $1.2 million, (v) incentive compensation with
respect to our disposition of an interest in Shurgard Europe included in
general and administrative expense totaling $27.9 million, and (vi) a
loss with respect to damage to our facilities, and tenant insurance
claims expense, caused by Hurricane Ike aggregating $1.1 million (an
increase in insurance proceeds with respect to Hurricane Katrina of $2.7
million in 2007). FFO for the year ended December 31, 2007 was also
impacted by (i) expenses related to our terminated offering of shares in
our European business totaling $9.6 million, (ii) expenses incurred in
connection with the Shurgard Merger totaling approximately $5.3 million,
(iii) expenses related to our reorganization as a Maryland REIT totaling
approximately $2.0 million, and (iv) an impairment charge included in
discontinued operations with respect to the closure of a containerized
storage facility totaling $0.9 million.
The following table provides a summary of the impact of these items that
have occurred during the three months and years ended December 31, 2008
and 2007:
Three Months Ended December 31, Year Ended December 31,
Percentage Percentage
2008 2007 Change 2008 2007
Change
FFO per
common share
prior to
adjustments $ 1.39 $ 1.30 6.9 % $ 5.18 $ 4.73 9.5 %
for the
following
items
Foreign
currency (0.08 ) 0.10 (0.15 ) 0.34
exchange gain
(loss), net
Change in
accounting
estimates - (0.01 ) - 0.03 -
ancillary
operations
Reduction in
the
allocation of
net income to
preferred
shareholders
to common 0.21 - 0.21 -
shareholders
pursuant to
preferred
redemptions,
including our
equity share
from PSB
Cancellation
of (0.02 ) - (0.02 ) (0.01 )
development
projects
Incremental
incentive - - (0.17 ) -
compensation
Impact
associated - - (0.01 ) 0.02
with
hurricanes
Costs and
expenses
incurred in
connection
with the
terminated - - - (0.06 )
public
offering of
shares in
Shurgard
Europe
Costs and
expenses
incurred in
connection - - - (0.03 )
with the
Shurgard
Merger
Costs to
reorganize as - - - (0.01 )
a Maryland
REIT
Impairment
charges on
containerized - - - (0.01 )
storage
operations
FFO per
common share, $ 1.49 $ 1.40 6.4 % $ 5.07 $ 4.97 2.0 %
as reported
FFO is a term defined by the National Association of Real Estate
Investment Trusts ("NAREIT"). It is generally defined as net income
before depreciation with respect to real estate assets and gains and
losses on real estate assets. FFO is presented because management and
many analysts consider FFO to be one measure of the performance of real
estate companies. In addition, we believe that FFO is helpful to
investors as an additional measure of the performance of a REIT, because
net income includes the impact of depreciation, which assumes that the
value of real estate diminishes predictably over time, while we believe
that the value of real estate fluctuates 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 is not a substitute for our cash
flow or net income as a measure of our liquidity or operating
performance or our ability to pay dividends. Other REITs may not compute
FFO in the same manner; accordingly, FFO may not be comparable among
REITs. See the attached reconciliation of net income to funds from
operations included in the selected financial data attached to this
press release.
As previously noted, we received net proceeds totaling approximately
$609.1 million in connection with our March 31, 2008 disposition of a
51% interest in Shurgard Europe. These funds were invested in short-term
liquid investments earning interest at rates averaging approximately 2%
during the quarter ended December 31, 2008.
Property Operations - Same Store
Facilities:
The following table summarizes the historical operating results of 1,789
facilities that were all stabilized as of January 1, 2006 and contain
approximately 109.4 million net rentable square feet, representing
approximately 87% of the aggregate net rentable square feet of our U.S.
consolidated self-storage portfolio at December 31, 2008. These
facilities include 416 facilities acquired in August 2006 in connection
with the Shurgard Merger.
Selected
Operating Data
for the Same
Store Three Months Ended December 31, Year Ended December 31,
Facilities
(1,789
Facilities):
2008 2007 Percentage 2008 2007 Percentage
Change Change
(Dollar amounts in thousands, except weighted average data)
Revenues:
Rental income $ 318,888 $ 314,689 1.3 % $ 1,283,015 $ 1,252,752 2.4 %
Late charges
and 14,192 13,196 7.5 % 56,291 53,563 5.1 %
administrative
fees collected
Total revenues 333,080 327,885 1.6 % 1,339,306 1,306,315 2.5 %
(a)
Cost of
operations:
Property taxes 26,000 26,389 (1.5 )% 125,696 122,157 2.9 %
Direct
property 22,251 21,432 3.8 % 88,468 87,516 1.1 %
payroll
Media 874 2,622 (66.7 )% 18,386 19,075 (3.6 )%
advertising
Other
advertising 3,957 3,874 2.1 % 17,168 17,714 (3.1 )%
and promotion
Utilities 7,689 7,532 2.1 % 33,270 31,949 4.1 %
Repairs and 10,145 9,844 3.1 % 39,949 39,980 (0.1 )%
maintenance
Telephone
reservation 2,758 3,179 (13.2 )% 11,744 11,798 (0.5 )%
center
Property 2,444 2,742 (10.9 )% 10,611 12,572 (15.6 )%
insurance
Other costs of 21,108 20,943 0.8 % 85,277 83,467 2.2 %
management
Total cost of 97,226 98,557 (1.4 )% 430,569 426,228 1.0 %
operations (a)
Net operating 235,854 229,328 2.8 % 908,737 880,087 3.3 %
income (b)
Depreciation
and (83,912 ) (87,804 ) (4.4 )% (318,696 ) (407,962 ) (21.9 )%
amortization
expense (c)
Operating $ 151,942 $ 141,524 7.4 % $ 590,041 $ 472,125 25.0 %
income
Gross margin 70.8 % 69.9 % 1.3 % 67.9 % 67.4 % 0.7 %
Weighted
average for
the period:
Square foot 87.8 % 88.3 % (0.6 )% 89.5 % 89.5 % 0.0 %
occupancy (d)
Realized
annual rent
per occupied $ 13.28 $ 13.03 1.9 % $ 13.10 $ 12.79 2.4 %
square foot
(e) (g)
REVPAF (f) (g) $ 11.66 $ 11.50 1.4 % $ 11.72 $ 11.45 2.4 %
Weighted
average at
December 31:
Square foot 87.1 % 87.9 % (0.9 )%
occupancy
In place
annual rent
per occupied $ 14.03 $ 13.93 0.7 %
square foot
(h)
Total net
rentable 109,436 109,436 -
square feet
(in thousands)
See attached reconciliation of these amounts to our consolidated
self-storage revenues and operating expenses. Revenues and cost of
operations do not include ancillary revenues and expenses generated at
the facilities with respect to tenant reinsurance, retail sales and truck
a) rentals. "Other costs of management" included in cost of operations
principally represents all the indirect costs incurred in the operations
of the facilities. Indirect costs principally include supervisory costs
and corporate overhead cost incurred to support the operating activities
of the facilities.
Net operating income or "NOI" is a non-GAAP (generally accepted
accounting principles) financial measure that excludes the impact of
depreciation expense. Although depreciation is an operating expense, we
believe that NOI is a meaningful measure of operating performance,
b) because we utilize NOI in making decisions with respect to capital
allocations, in determining current property values, segment performance
and comparing period-to-period and market-to-market property operating
results. NOI is not a substitute for net operating income after
depreciation in evaluating our operating results.
Depreciation and amortization expense for the three months and year ended
c) December 31, 2008 decreased primarily due to a reduction in amortization
expense related to intangible assets that we obtained in the Shurgard
Merger.
d) Square foot occupancies represent weighted average occupancy levels over
the entire period.
Realized annual rent per occupied square foot is computed by annualizing
the result of dividing rental income by the weighted average occupied
e) square footage for the period. Realized annual rent per occupied square
foot takes into consideration promotional discounts and other items that
reduce rental income from the contractual amounts due.
Annualized rental income per available square foot ("REVPAF") represents
annualized rental income which excludes late charges and administrative
f) fees divided by total available net rentable square feet. Rental income
is also net of promotional discounts and collection costs, including bad
debt expense.
Late charges and administrative fees are excluded from the computation of
realized annual rent per occupied square foot and REVPAF because
exclusion of these amounts provides a better measure of our ongoing level
g) of revenue, by excluding the volatility of late charges, which are
dependent principally upon the level of tenant delinquency, and
administrative fees, which are dependent principally upon the absolute
level of move-ins for a period.
In place annual rent per occupied square foot represents annualized
h) contractual rents per occupied square foot without reductions for
promotional discounts and excludes late charges and administrative fees.
The following table summarizes additional selected financial data with
respect to the Same Store Facilities (unaudited):
Three Months Ended
March 31 June 30 September December 31 Full Year
30
Total
revenues
(in 000's):
2008 $ 326,781 $ 335,412 $ 344,033 $ 333,080 $ 1,339,306
2007 $ 317,169 $ 325,144 $ 336,117 $ 327,885 $ 1,306,315
Total cost
of
operations
(in 000's):
2008 $ 115,347 $ 112,182 $ 105,814 $ 97,226 $ 430,569
2007 $ 110,523 $ 110,480 $ 106,668 $ 98,557 $ 426,228
Property
taxes (in
000's):
2008 $ 33,705 $ 32,526 $ 33,465 $ 26,000 $ 125,696
2007 $ 32,318 $ 31,110 $ 32,340 $ 26,389 $ 122,157
Media
advertising
(in 000's):
2008 $ 6,366 $ 9,148 $ 1,998 $ 874 $ 18,386
2007 $ 4,820 $ 7,589 $ 4,044 $ 2,622 $ 19,075
Other
advertising
and
promotion
(in 000's):
2008 $ 4,130 $ 4,733 $ 4,348 $ 3,957 $ 17,168
2007 $ 4,633 $ 5,027 $ 4,180 $ 3,874 $ 17,714
REVPAF:
2008 $ 11.45 $ 11.75 $ 12.04 $ 11.66 $ 11.72
2007 $ 11.12 $ 11.40 $ 11.77 $ 11.50 $ 11.45
Weighted
average
realized
annual rent
per
occupied
square foot
for the
period:
2008 $ 12.89 $ 12.92 $ 13.30 $ 13.28 $ 13.10
2007 $ 12.52 $ 12.54 $ 13.06 $ 13.03 $ 12.79
Weighted
average
square foot
occupancy
levels for
the period:
2008 88.8 % 91.0 % 90.5 % 87.8 % 89.5 %
2007 88.8 % 90.9 % 90.1 % 88.3 % 89.5 %
Shurgard Europe:
As previously announced, on March 31, 2008, an institutional investor
acquired a 51% interest in Shurgard Europe's operations. We own the
remaining 49% interest and we are the managing member of the newly
formed joint venture that now owns Shurgard Europe's operations. As a
result of this transaction we began accounting for our investment in
Shurgard Europe under the equity method effective March 31, 2008.
During the year ended December 31, 2008, we incurred $27.9 million of
incentive compensation expense with respect to the March 31, 2008
Shurgard Europe transaction. This amount is included in our general and
administrative expense. No such incentive compensation amounts were
incurred in the quarter ended December 31, 2008.
Shurgard Europe has an interest in 180 facilities (9.5 million net
rentable square feet) located in seven Western European countries.
Included in this total are 72 facilities (3.6 million net rentable
square feet) that are owned in two joint ventures in which Shurgard
Europe has a 20% interest.
As previously disclosed, in January 2007 we filed an arbitration action
with our joint venture partner related to our intention to terminate the
joint venture early. The arbitration panel issued its decision denying
Shurgard Europe's request to terminate the joint venture early, however,
the panel also found that Shurgard Europe had acted reasonably and ruled
that each party share in the costs.
The two joint ventures collectively had approximately EUR250 million ($355
million) of outstanding debt payable to third parties at December 31,
2008, which is non-recourse to Shurgard Europe. One of the loans
totaling EUR120 million ($170 million) is due May 2009 and the other loan
totaling EUR130 million ($185 million) is due in June 2009. Shurgard
Europe is currently negotiating terms to extend the maturities of these
joint venture loans out one to three years. We expect Shurgard Europe to
finalize these extensions within the next 90 days, although there can be
no assurance that such extensions will actually be completed.
At December 31, 2008, Shurgard Europe had seven newly developed
facilities and two expansions to existing facilities under construction
(483,000 net rentable square feet), with costs incurred of $51.2 million
and $30.6 million in costs to complete. The development of these
facilities is subject to various risks and contingencies.
During the quarter ended December 31, 2008, Shurgard Europe terminated
its development pipeline for projects that had not commenced
construction, and incurred approximately $2.6 million in additional
general and administrative expense for the projects that were terminated.
Our existing EUR391.9 million ($552.4 million at December 31, 2008) loan
to Shurgard Europe was extended pursuant to Shurgard Europe's option
under the terms of the original note for an additional year to March 31,
2010 and will continue to accrue interest at 7.5% per annum. The loan
currently is not hedged for future currency exchange fluctuations;
accordingly, the amount of U.S. Dollars that will be received on
repayment will depend upon the currency exchange rates at the time. In
addition, Shurgard Europe exercised its option and extended our
commitment through March 31, 2010 to provide up to EUR305 million of
additional loans to Shurgard Europe. Borrowings are to be used to either
fund the acquisition of Shurgard Europe's partner's interest in the
joint ventures and/or repay Shurgard Europe's pro rata share of the
joint ventures' debt. The acquisitions of the joint venture partners'
interests are subject to our approval and Shurgard Europe's pro rata
share of the aggregate joint venture debt is approximately EUR50 million.
As a result of these extensions, we will receive a fee of approximately
EUR3.5 million from Shurgard Europe in March 2009.
Development and Asset Acquisition
Activities:
During the fourth quarter of 2008, we acquired one self-storage facility
in California with net rentable square feet of 38,000 for an aggregate
purchase price of $5.3 million. We also completed a newly developed
facility with 55,000 net rentable square feet at a total cost of $7.9
million and six expansion projects at a total cost of $22.1 million
adding 253,000 net rentable square feet.
At December 31, 2008, we had five expansion projects under construction
(189,000 net additional rentable square feet) in the United States,
which expand existing self-storage facilities and enhance their visual
appeal with costs incurred of $20.3 million and $6.8 million in costs to
complete. Opening dates for these facilities are estimated through the
next 12 months. The development of these facilities is subject to
various risks and contingencies.
During the quarter ended December 31, 2008, we terminated our
development pipeline for projects that had not yet commenced
construction, and incurred general and administrative expense totaling
$1.5 million for the projects that were terminated.
During the quarter ended December 31, 2008, we recorded a disposition of
an equity interest we had in certain partnerships, in exchange for a
note receivable from the buyer valued at approximately $5.3 million. We
recorded a loss on disposition totaling $9.3 million in connection with
this transaction.
Share Repurchases and Debt Tender:
As disclosed previously, our Board of Trustees has authorized the
repurchase from time to time of up to 35,000,000 of our common shares on
the open market or in privately negotiated transactions.
During the first quarter of 2008, we repurchased a total of 1,520,196
common shares for an aggregate of approximately $111.9 million. No
further common shares have been repurchased since the first quarter of
2008 through February 26, 2009. We have 11,278,084 common shares
remaining on our repurchase authorization at February 26, 2009.
During the fourth quarter of 2008, we repurchased shares of our
preferred securities in privately negotiated transactions as follows:
Series Y - 849,100 Cumulative Preferred Shares at a total cost of
$14,091,000, Series K - 1,409,756 Cumulative Preferred Shares at a total
cost of $23,786,000, Series L - 933,400 Cumulative Preferred Shares at a
total cost of $14,626,000 and Series M - 934,647 Cumulative Preferred
Shares at a total cost of $14,375,000. The aggregate amount paid of
$66.9 million was approximately $33.9 million less than the original net
proceeds from issuance of the respective preferred shares and,
accordingly, we reflected an allocation of income from the preferred
shareholders to the common shareholders of $33.9 million. Our ongoing
distributions paid to preferred shareholders were reduced approximately
$1.6 million during the quarter ended December 31, 2008 as a result of
these repurchases, and we expect an ongoing annualized reduction in
dividends to our preferred shareholders of $7.1 million.
During the fourth quarter of 2008, we also repurchased 367,000 shares of
our Equity Shares, Series A in a privately negotiated transaction, for
an aggregate of $7,707,000. Distributions paid to equity share
shareholders were reduced $225,000 during the quarter as a result of
this transaction, and we expect an ongoing annualized reduction in
dividends on our Equity Shares, Series A of $900,000.
As previously announced, on February 12, 2009, pursuant to a tender
offer, we acquired $96.7 million principal amount of our 7.75% senior
unsecured notes due in 2011 at par, and $13.5 million face amount of our
5.875% senior unsecured notes due in 2013 at 92.5% of par. As a result,
we expect to record a gain of approximately $4.5 million on the
extinguishment of debt in the first quarter of 2009 and we expect
annualized interest payments to decline by approximately $8.3 million.
Liquidity Position:
At December 31, 2008, we have approximately $681 million of unrestricted
cash on hand ($572 million, after the expenditure to acquire our senior
unsecured notes described above) and have access to an additional $300
million line of credit. The line of credit does not expire until March
27, 2012. We have no significant capital commitments at December 31,
2008 other than outstanding debt maturities.
At December 31, 2008, outstanding debt totaled $644 million ($533
million, adjusted for the expenditure to acquire our senior notes
described above). After adjusting for the aforementioned extinguishments
in early 2009, we have no significant maturities until 2011 ($130
million of maturities) and 2013 ($252 million of maturities).
Our retained operating cash flow continues to provide a significant
source of capital to fund our activities. During the year ended December
31, 2008, our funds from operations available to distribute to common
shareholders ("FAD") exceeded our regular common distributions (which
excludes a $101 million special dividend paid in the fourth quarter that
was driven primarily by our gain on sale of an interest in Shurgard
Europe) by approximately $410 million. Our ability to continue to retain
operating cash flow in the future will be contingent upon a number of
factors including, but not limited to, the growth in our operations and
our distribution requirements to maintain our REIT status.
Distributions Declared:
On February 26, 2009 our Board of Trustees declared a regular common
dividend of $0.55 per common share, a dividend of $0.6125 per share on
the Equity Shares, Series A and dividends with respect to our various
series of preferred shares. All the dividends are payable on March 31,
2009 to shareholders of record as of March 16, 2009.
Fourth Quarter Conference Call:
A conference call is scheduled for Friday, February 27, 2009 at 10:00
a.m. (PST) to discuss the fourth quarter ended December 31, 2008
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 81759006). A simultaneous audio web
cast may be accessed by using the link at www.publicstorage.com
under "Corporate Information, Investor Relations" (conference ID number
81759006). A replay of the conference call may be accessed through March
20, 2009, by calling (800) 642-1687 (domestic) or (706) 645-9291
(international) or by using the link at www.publicstorage.com
under "Corporate Information, Investor Relations." All forms of replay
utilize conference ID number 81759006.
About Public Storage:
Public Storage, a member of the S&P 500 and The Forbes Global 2000, is a
fully integrated, self-administered and self-managed real estate
investment trust that primarily acquires, develops, owns and operates
self-storage facilities. The Company's headquarters are located in
Glendale, California. At December 31, 2008, the Company had interests in
2,018 self-storage facilities located in 38 states with approximately
127 million net rentable square feet in the United States and 181
storage facilities located in seven Western European nations with
approximately ten million net rentable square feet.
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
Public Storage's 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 Public Storage's filings
with the Securities and Exchange Commission, including in Item 1A, "Risk
Factors" in Public Storage's Annual Report on Form 10-K for the fiscal
year ended December 31, 2007 and Form 10-K for the period ended December
31, 2008 expected to be filed on or before March 1, 2009, 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 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; difficulties in raising capital at
a reasonable cost; delays in the development process; and economic
uncertainty due to the impact of war or terrorism. Public Storage
disclaims 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 FINANCIAL DATA
(Unaudited)
Comparisons of our revenues and expenses for the three and twelve months ended
December 31, 2008 to the same periods in 2007 are significantly impacted by the
acquisition by an institutional investor of a 51% interest in Shurgard Europe on
March 31, 2008, which resulted in the deconsolidation of Shurgard Europe.
Shurgard Europe's revenues and expenses after March 31, 2008 are excluded from
our statement of operations and, instead, our 49% equity share of Shurgard
Europe's operating results are included in the line item "equity in earnings of
real estate entities" and we also record interest and other income with respect
to (i) the interest received on our intercompany loan from Shurgard Europe and
(ii) license fee income.
Three Months Ended Year Ended
December 31, (a) December 31, (a)
2008 2007 2008 2007
(Amounts in thousands, except per share data)
Revenues:
Self-storage $ 381,808 $ 425,076 $ 1,581,299 $ 1,662,454
rental income
Ancillary 29,195 34,376 128,153 140,628
operations
Interest and other 10,812 5,080 36,155 11,417
income (a)
421,815 464,532 1,745,607 1,814,499
Expenses:
Cost of
operations:
Self-storage 112,974 139,027 520,076 580,227
facilities
Ancillary 15,088 15,706 60,501 77,516
operations (b)
Depreciation and 104,288 130,783 414,188 622,400
amortization (c)
General and 5,841 10,352 62,809 59,749
administrative (d)
Interest expense 8,757 14,899 43,944 63,671
246,948 310,767 1,101,518 1,403,563
Income from
continuing
operations before
equity in earnings
of real estate
entities, gain
(loss) on
disposition of 174,867 153,765 644,089 410,936
real estate
investments,
casualty gain
(loss), foreign
currency exchange
gain (loss), and
minority interest
in income
Equity in earnings
of real estate 6,712 2,555 20,391 12,738
entities (a)
Gain (loss) on
disposition of (6,252 ) 217 336,545 2,547
real estate
investments (e)
Casualty gain - - (525 ) 2,665
(loss)
Foreign currency
exchange gain (13,159 ) 16,341 (25,362 ) 58,444
(loss) (f)
Minority interest
in income
allocable to:
Preferred minority (5,403 ) (5,403 ) (21,612 ) (21,612 )
interests
Other partnership (4,941 ) (2,529 ) (17,084 ) (7,931 )
interests
Income from
continuing 151,824 164,946 936,442 457,787
operations
Discontinued (134 ) 2,941 (1,266 ) (252 )
operations
Net income $ 151,690 $ 167,887 $ 935,176 $ 457,535
Net income
allocation:
Allocable to
preferred
shareholders based $ 58,722 $ 60,333 $ 239,721 $ 236,757
on distribution
paid
Allocable from
preferred (33,851 ) - (33,851 ) -
shareholders based
on redemptions (g)
Allocable to
Equity Shares, 5,131 5,356 21,199 21,424
Series A
Allocable to
common 121,688 102,198 708,107 199,354
shareholders
$ 151,690 $ 167,887 $ 935,176 $ 457,535
Per common share:
Net income per $ 0.72 $ 0.60 $ 4.21 $ 1.18
share - Basic
Net income per $ 0.72 $ 0.60 $ 4.19 $ 1.17
share - Diluted
Weighted average
common shares - 168,254 169,415 168,250 169,342
Basic
Weighted average
common shares - 168,565 170,089 168,883 170,147
Diluted
Commencing March 31, 2008, we account for our investment in Shurgard Europe
using the equity method of accounting. Accordingly, we no longer present
Shurgard Europe's revenues, expenses and other operating items with respect
to periods after March 31, 2008, and we instead reflect our pro-rata share
of Shurgard Europe's operations as "equity in earnings of real estate
entities" along with interest and other income related to the loan
receivable from Shurgard Europe. For the three months and year ended
December 31, 2008, included in equity in earnings of real estate entities
is $417,000 and $4,134,000, respectively, related to our investment in
(a) Shurgard Europe. These earnings are comprised of our 49% equity share of
Shurgard Europe's net loss, combined with $5,365,000 and $17,774,000 for
the three months and year ended December 31, 2008, respectively,
representing 49% of the aggregate interest and trademark license income
received from Shurgard Europe after March 31, 2008. Included in interest
and other income for the three months and year ended December 31, 2008, is
an aggregate of $5,584,000 and $18,496,000, respectively, with respect to
the loan receivable from Shurgard Europe and trademark license fees,
representing 51% of the aggregate interest and trademark license income
received from Shurgard Europe after March 31, 2008.
Ancillary cost of operations have increased $1.2 million for the three
(b) months ended December 31, 2008, and decreased $5.8 million for the year
ended December 31, 2008 as a result of changes in accounting estimates
related to our tenant insurance operations.
Depreciation and amortization expense for the three months and year ended
December 31, 2008 decreased when compared to the same periods in 2007
(c) primarily due to reductions in amortization expense related to domestic
intangible assets, primarily those obtained in the Shurgard Merger,
combined with the impact of the deconsolidation of Shurgard Europe.
For the year ended December 31, 2008, general and administrative expense
includes additional incentive compensation totaling $27.9 million
(d) associated with the disposition of an interest in Shurgard Europe. In
addition, for the year ended December 31, 2007, we incurred additional
expenses in connection with the proposed offering of shares of Shurgard
Europe totaling approximately $9.6 million.
Gain on disposition of real estate investments for the year ended December
31, 2008 includes a $344.7 million gain on our disposition of a 51%
(e) interest in Shurgard Europe, as well as a $9.3 million loss upon
disposition of an equity investment recorded in the quarter ended December
31, 2008.
Our foreign currency exchange gains and losses are primarily related to our
(f) intercompany loan to Shurgard Europe, representing the impact of the
fluctuation in the exchange rate between the value of the U.S. Dollar and
the Euro.
During the quarter ended December 31, 2008, we repurchased various series
of our preferred shares for an aggregate of $66.9 million. This amount paid
was approximately $33.9 million lower than the original issue proceeds of
(g) the preferred shares acquired and, accordingly, we recorded an allocation
of income from the preferred shareholders to the common shareholders of
$33.9 million. These repurchases are expected to reduce ongoing
distributions to the preferred shareholders by $7.1 million per year.
PUBLIC STORAGE
SELECTED FINANCIAL DATA
December 31, December 31,
2008 2007
(Unaudited) (a)
(Amounts in thousands, except share
and per share data)
ASSETS
Cash and cash equivalents $ 680,701 $ 245,444
Operating real estate facilities:
Land and buildings, at cost 10,207,022 11,658,807
Accumulated depreciation (2,405,473 ) (2,128,225 )
7,801,549 9,530,582
Construction in process 20,340 51,972
7,821,889 9,582,554
Investment in real estate entities 544,598 306,743
Goodwill 174,634 174,634
Intangible assets, net 52,005 173,745
Loan receivable from Shurgard Europe 552,361 -
Other assets 109,857 159,982
Total assets $ 9,936,045 $ 10,643,102
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable $ 643,811 $ 1,069,928
Accrued and other liabilities 212,353 303,357
Total liabilities 856,164 1,373,285
Minority interest 364,417 506,688
Shareholders' equity:
Cumulative Preferred Shares of beneficial
interest, $0.01 par value, 100,000,000
shares authorized, 887,122 shares issued 3,424,327 3,527,500
(in series) and outstanding (1,739,500 at
December 31, 2007), at liquidation
preference
Common Shares of beneficial interest,
$0.10 par value, 650,000,000 shares
authorized, 168,279,732 shares issued and 16,829 16,943
outstanding (169,422,475 at December 31,
2007)
Equity Shares of beneficial interest,
Series A, $0.01 par value, 100,000,000
shares authorized, 8,377.193 shares - -
issued and outstanding at December 31,
2008 (8,744.193 shares at December 31,
2007)
Paid-in capital 5,590,093 5,653,975
Cumulative net income 4,896,003 3,960,827
Cumulative distributions paid (5,179,857 ) (4,446,181 )
Accumulated other comprehensive (loss) (31,931 ) 50,065
income
Total shareholders' equity 8,715,464 8,763,129
Total liabilities and shareholders' $ 9,936,045 $ 10,643,102
equity
On March 31, 2008, an institutional investor acquired a 51% interest in our
(a) European operations. As a result of the transaction, effective March 31,
2008 we no longer consolidate the accounts of Shurgard Europe and account
for our investment on the equity method of accounting.
Shurgard Europe Same Store Selected
Operating Data
The operating data presented in the table below for each period reflects
the historical data for the Europe Same Store Portfolio of 96 facilities
that have been operated on a stabilized basis since January 1, 2006. As
described more fully in "Shurgard Europe" above, we deconsolidated
Shurgard Europe effective March 31, 2008 and, accordingly, the revenues
and cost of operations for the quarter ended December 31, 2008 are not
included in our income statements.
Selected
Operating Data
for the 96
facilities
operated
by Shurgard
Europe on a Three Months Ended December 31, Year Ended December 31,
stabilized
basis since
January 1,
2006 ("Europe
Same Store
Facilities"):
(unaudited)
2008 2007 (a) Percentage 2008 2007 (a) Percentage
Change Change
(Dollar amounts in thousands, except weighted average data,
utilizing constant exchange rates) (a)
Revenues:
Rental income $ 29,150 $ 29,991 (2.8 )% $ 133,924 $ 131,876 1.6 %
Late charges
and 456 319 42.9 % 2,278 1,335 70.6 %
administrative
fees collected
Total revenues 29,606 30,310 (2.3 )% 136,202 133,211 2.2 %
(b)
Cost of
operations:
Property taxes 1,267 1,332 (4.9 )% 6,085 5,851 4.0 %
Direct
property 3,507 3,645 (3.8 )% 15,474 15,739 (1.7 )%
payroll
Advertising 879 687 27.9 % 4,109 4,327 (5.0 )%
and promotion
Utilities 699 687 1.7 % 3,194 3,126 2.2 %
Repairs and 914 901 1.4 % 3,659 3,510 4.2 %
maintenance
Property 187 241 (22.4 )% 845 1,274 (33.7 )%
insurance
Other costs of 4,192 4,385 (4.4 )% 18,584 19,807 (6.2 )%
management
Total cost of 11,645 11,878 (2.0 )% 51,950 53,634 (3.1 )%
operations (b)
Net operating
income
(excluding
depreciation $ 17,961 $ 18,432 (2.6 )% $ 84,252 $ 79,577 5.9 %
and
amortization)
(c)
Gross margin 60.7 % 60.8 % (0.2 )% 61.9 % 59.7 % 3.7 %
Weighted
average for
the period:
Square foot 85.9 % 90.4 % (5.0 )% 86.5 % 89.8 % (3.7 )%
occupancy (d)
Realized
annual rent
per occupied $ 25.68 $ 25.10 2.3 % $ 29.29 $ 27.78 5.4 %
square foot
(e) (g)
REVPAF (f) (g) $ 22.06 $ 22.69 (2.8 )% $ 25.34 $ 24.95 1.6 %
Weighted
average at
December 31:
Square foot 84.3 % 89.0 % (5.3 )%
occupancy
In place
annual rent
per occupied $ 27.41 $ 26.72 2.6 %
square foot
(h)
Total net
rentable 5,286 5,286 -
square feet
(in thousands)
For comparative purposes, these amounts are presented on a constant
exchange rate basis. The amounts for the three months and year ended
December 31, 2007 have been restated using the actual exchange rate for
(a) the same periods in 2008. The exchange rate for the Euro relative to the
U.S. Dollar averaged 1.316 and 1.470 for the three months and year ended
December 31, 2008, respectively, as compared to 1.448 and 1.370 for the
same periods in 2007, respectively.
Revenues and cost of operations do not include ancillary revenues and
expenses generated at the facilities with respect to tenant reinsurance
and retail sales. "Other costs of management" included in cost of
(b) operations principally represents all the indirect costs incurred in the
operations of the facilities. Indirect costs principally include
supervisory costs and corporate overhead cost incurred to support the
operating activities of the facilities.
Net operating income (before depreciation and amortization) or "NOI" is
a non-GAAP (generally accepted accounting principles) financial measure
that excludes the impact of depreciation expense. Although depreciation
is an operating expense, we believe that NOI is a meaningful measure of
(c) operating performance, because we utilize NOI in making decisions with
respect to capital allocations, in determining current property values,
segment performance, and comparing period-to-period and market-to-market
property operating results. NOI is not a substitute for net operating
income after depreciation in evaluating our operating results.
(d) Square foot occupancies represent weighted average occupancy levels over
the entire period.
Realized annual rent per occupied square foot is computed by annualizing
the result of dividing rental income by the weighted average occupied
(e) square footage for the period. Realized annual rent per occupied square
foot takes into consideration promotional discounts and other items that
reduce rental income from the contractual amounts due.
Annualized rental income per available square foot ("REVPAF") represents
annualized rental income which excludes late charges and administrative
(f) fees divided by total available net rentable square feet. Rental income
is also net of promotional discounts and collection costs, including bad
debt expense.
Late charges and administrative fees are excluded from the computation
of realized annual rent per occupied square foot and REVPAF because
exclusion of these amounts provides a better measure of our ongoing
(g) level of revenue, by excluding the volatility of late charges, which are
dependent principally upon the level of tenant delinquency, and
administrative fees, which are dependent principally upon the absolute
level of move-ins for a period.
In place annual rent per occupied square foot represents annualized
(h) contractual rents per occupied square foot without reductions for
promotional discounts and excludes late charges and administrative fees.
PUBLIC STORAGE
SELECTED FINANCIAL DATA
Computation of Funds from Operations (a)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
(Amounts in thousands, except per share data)
Computation of
Funds from
Operations (FFO)
allocable to
Common Shares:
Net Income $ 151,690 $ 167,887 $ 935,176 $ 457,535
Add back -
depreciation and 104,288 130,783 414,188 622,400
amortization
Add back -
depreciation and
amortization 2 81 13 494
included in
Discontinued
Operations
Eliminate -
depreciation with
respect to (62 ) (89 ) (253 ) (406 )
non-real estate
assets
Eliminate - (gain)
loss on sale of 6,252 (217 ) (336,545 ) (2,547 )
real estate
investments
Eliminate - gain
on sale of real
estate assets - (4,336 ) - (4,336 )
included in
Discontinued
Operations
Add back -
Depreciation from
unconsolidated 18,727 12,754 74,918 45,307
real estate
investments
Add back -
minority interest 10,344 7,932 38,696 29,543
share of income
Consolidated FFO 291,241 314,795 1,126,193 1,147,990
Allocable to
preferred minority (5,403 ) (5,403 ) (21,612 ) (21,612 )
interests
Allocable to other (5,114 ) (6,421 ) (21,904 ) (21,989 )
minority interests
Remaining FFO
allocable to our 280,724 302,971 1,082,677 1,104,389
shareholders
Less: allocations
to preferred and
equity
shareholders:
Allocable to
preferred
shareholders based (58,722 ) (60,333 ) (239,721 ) (236,757 )
upon dividends
paid
Allocable from
preferred 33,851 - 33,851 -
shareholders based
upon redemptions
Allocable to
Equity Shares,
Series A based (5,131 ) (5,356 ) (21,199 ) (21,424 )
upon dividends
paid
Remaining FFO
allocable to $ 250,722 $ 237,282 $ 855,608 $ 846,208
Common Shares (a)
Weighted average
shares:
Regular common 168,254 169,415 168,250 169,342
shares
Weighted average
stock options and
restricted share 311 674 633 805
units outstanding
using treasury
method
Weighted average
common shares for
purposes of 168,565 170,089 168,883 170,147
computing
fully-diluted FFO
per common share
FFO per diluted $ 1.49 $ 1.40 $ 5.07 $ 4.97
common share (a)
Funds from operations ("FFO") is a term defined by the National
Association of Real Estate Investment Trusts ("NAREIT"). FFO is a
non-GAAP (generally accepted accounting principles) financial measure.
FFO is generally defined as net income before depreciation with respect
to real estate assets and gains and losses on real estate assets. FFO is
presented because management and many analysts consider FFO to be one
measure of the performance of real estate companies. In addition, we
believe that FFO is helpful to investors as an additional measure of the
(a) performance of a REIT, because net income includes the impact of
depreciation, which assumes that the value of real estate diminishes
predictably over time, while we believe that the value of real estate
fluctuates 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 is not a substitute for our cash flow or net income as a
measure of our liquidity or operating performance or our ability to pay
dividends. Other REITs may not compute FFO in the same manner;
accordingly, FFO may not be comparable among REITs.
PUBLIC STORAGE
SELECTED FINANCIAL DATA
Computation of Funds Available for Distribution
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
(Amounts in thousands)
Computation of Funds
Available for
Distribution ("FAD"):
FFO allocable to $ 250,722 $ 237,282 $ 855,608 $ 846,208
Common Shares (a)
Add: Non-cash
share-based 2,828 1,197 12,591 8,511
compensation expense
Eliminate: Non-cash
foreign currency 13,159 (16,341 ) 25,362 (58,444 )
exchange losses
(gains)
Less: FFO allocated
from preferred
shareholders to common
shareholders pursuant (35,774 ) - (35,774 ) -
to preferred
repurchase, including
our equity share of
PSB
Less: Aggregate (3,682 ) (19,649 ) (76,311 ) (69,102 )
capital expenditures
Add back: Capital
expenditures for - - - 3,600
Shurgard rebranding
effort
Funds available for
distribution ("FAD") $ 227,253 $ 202,489 $ 781,476 $ 730,773
(b)
Distribution to common
shareholders:
Regular $ 93,296 $ 84,980 $ 371,798 $ 340,002
Special (c) 100,958 - 100,958 -
Total distribution to $ 194,254 $ 84,980 $ 472,756 $ 340,002
common shareholders
Distribution payout 85.5 % 42.0 % 60.5 % 46.5 %
ratio (b)
Distribution payout
ratio (on regular 41.1 % 42.0 % 47.6 % 46.5 %
dividends only) (d)
Funds from operations ("FFO") is a term defined by the National
Association of Real Estate Investment Trusts ("NAREIT"). FFO is a
non-GAAP (generally accepted accounting principles) financial measure.
FFO is generally defined as net income before depreciation with respect
to real estate assets and gains and losses on real estate assets. FFO is
presented because management and many analysts consider FFO to be one
measure of the performance of real estate companies. In addition, we
believe that FFO is helpful to investors as an additional measure of the
(a) performance of a REIT, because net income includes the impact of
depreciation, which assumes that the value of real estate diminishes
predictably over time, while we believe that the value of real estate
fluctuates 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 is not a substitute for our cash flow or net income as a
measure of our liquidity or operating performance or our ability to pay
dividends. Other REITs may not compute FFO in the same manner;
accordingly, FFO may not be comparable among REITs.
Funds available for distribution ("FAD") represents FFO, plus (i)
impairment charges with respect to real estate assets, (ii) the non-cash
portion of stock-based compensation expense, (iii) noncash allocations
to or from preferred equity holders, less capital expenditures to
maintain our facilities and (iv) elimination of any gain or loss on
foreign exchange. The distribution payout ratio is computed by dividing
the distribution paid by FAD. FAD is presented because many analysts
(b) consider it to be a measure of the performance and liquidity of real
estate companies and because we believe that FAD is helpful to investors
as an additional measure of the performance of a REIT. FAD is not a
substitute for our cash flow or net income as a measure of our
liquidity, operating performance, or our ability to pay dividends. FAD
does not take into consideration required principal payments on debt.
Other REITs may not compute FAD in the same manner; accordingly, FAD may
not be comparable among REITs.
The Board of Trustees declared a special dividend of $0.60 per share on
(c) November 6, 2008 which was paid on December 30, 2008. This payout was
primarily due to the gain on sale of 51% of our interest in Shurgard
Europe.
Supplemental payout ratio, excluding the impact of the special dividend,
which was primarily due to the gain on sale of 51% of our interest in
(d) Shurgard Europe. This supplemental measure is presented to portray
ongoing dividends, excluding the dividend due to the gain on sale of
Shurgard, because FAD excludes the gain on sale of an interest in
Shurgard Europe.
PUBLIC STORAGE
SELECTED FINANCIAL DATA
Reconciliation of Same Store Revenues and Cost of Operations
To Consolidated Self-Storage Rental Income and Cost of Operations
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
(Amounts in thousands)
Revenues for the Same $ 333,080 $ 327,885 $ 1,339,306 $ 1,306,315
Store facilities
Revenues for other
facilities (a):
Newly acquired or
developed facilities put
into service during:
2008 1,265 - 2,628 -
2007 1,879 1,145 6,586 2,334
2004, 2005, and 2006 (b) 22,379 20,446 87,520 78,342
Expansion facilities 23,205 21,423 90,537 82,956
Shurgard Europe's
facilities, which were - 54,177 54,722 192,507
deconsolidated March 31,
2008
Consolidated self-storage $ 381,808 $ 425,076 $ 1,581,299 $ 1,662,454
revenues (c)
Cost of operations for the $ 97,226 $ 98,557 $ 430,569 $ 426,228
Same Store facilities
Cost of operations for
other facilities (a):
Newly acquired or
developed facilities put
into service during:
2008 507 - 1,041 -
2007 740 738 2,962 1,351
2004, 2005, and 2006 (b) 6,898 7,243 30,880 31,358
Expansion facilities 7,603 7,356 29,970 29,601
Shurgard Europe's
facilities, which were - 25,133 24,654 91,689
deconsolidated March 31,
2008
Consolidated self-storage $ 112,974 $ 139,027 $ 520,076 $ 580,227
cost of operations (c)
(a) We consolidate the operating results of additional self-storage facilities
that are not Same Store facilities.
Includes 66 facilities which we acquired in the merger with Shurgard that
(b) are not included in the Same Store facilities and are not owned by Shurgard
Europe, along with 12 additional facilities acquired in 2006.
Self-storage revenues and cost of operations do not include revenues and
(c) expenses generated at the facilities with respect to tenant reinsurance,
retail sales and truck rentals.
Source: Public Storage
Contact: Public Storage
Clemente Teng, (818) 244-8080