Public Storage 1997 Annual Report Download - page 42

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Public Storage, Inc. 1997 Annual Report
As indicated above, in early 1996, the Company implemented a national telephone reservation system designed to provide added
customer service for all the self-storage facilities under management by the Company. The Company believes that the improved operating
results, as indicated in the above table, in large part are due to the success of the national telephone reservation system. However, the
national telephone reservation system was not fully operational for most of the self-storage facilities until the latter part of the fourth quarter
of 1996.
Rental income for the Same Store facilities included promotional discounts totaling $16,708,000 in 1997 compared to $6,000,000 in
1996 and $729,000 in 1995, respectively. The significant increase in 1997 was principally due to experimentation with pricing and
promotional discounts designed to increase rental activity.
The self-storage facilities experience minor seasonal fluctuations in occupancy levels with occupancies generally higher in the summer months
than in the winter months. The Company believes that these fluctuations result in part from increased moving activities during the summer.
Same-Store Operating Trends by Region
Northern California Southern California Texas Florida Illinois Other states Total
% change % change % change % change % change % change % change
from prior from prior from prior from prior from prior from prior from prior
Amount year Amount year Amount year Amount year Amount year Amount year Amount year
Rental Revenues:
1997 $71,406 9.5% $85,944 8.1% $41,435 4.4% $29,248 4.8% $34,404 10.6% $212,734 5.3% $475,171 6.6%
1996 65,222 8.6% 79,524 4.9% 39,704 1.3% 27,908 3.1% 31,123 9.0% 202,105 5.1% 445,586 5.4%
1995 60,053 5.8% 75,826 3.6% 39,191 2.7% 27,066 3.1% 28,552 7.6% 192,245 5.4% 422,933 4.9%
Cost of operations
1997 $20,239 9.7% $25,862 5.2% $17,239 4.6% $11,638 8.0% $16,105 8.2% $ 76,567 3.5% $167,650 6.0%
1996 18,457 3.4% 24,580 5.7% 16,482 5.8% 10,772 3.5% 14,887 5.5% 73,034 6.7% 158,212 5.7%
1995 17,856 3.4% 23,250 (1.6)% 15,574 1.5% 10,412 1.1% 14,115 16.9% 68,453 3.5% 149,660 3.4%
Net operating income:
1997 $51,167 9.4% $60,082 9.4% $24,196 4.2% $17,610 2.8% $18,299 12.7% $136,167 5.5% $307,521 7.0%
1996 46,765 10.8% 54,944 4.5% 23,222 (1.7)% 17,136 2.9% 16,236 12.5% 129,071 4.3% 287,374 5.2%
1995 42,197 6.8% 52,576 6.1% 23,617 3.5% 16,654 4.5% 14,437 (0.1)% 123,792 6.5% 273,273 5.7%
Weighted avg. occupancy
1997 96.1% 1.6% 91.5% 4.2% 92.3% 2.7% 90.6% 1.9% 91.5% (1.3)% 90.9% (1.3)% 91.8% 0.6%
1996 94.5% 3.4% 87.3% 2.1% 89.6% 1.2% 88.7% 0.2% 92.8% – 92.2% 0.5% 91.2% 1.1%
1995 91.1% 3.5% 85.2% 2.4% 88.4% – 88.5% (1.3)% 92.8% 2.0% 91.7% 0.3% 90.1% 1.0%
Weighted avg. annual realized rents per sq. ft.
1997 $11.04 8.2% $10.56 2.3% $6.96 1.8% $8.28 3.0% $9.84 10.8% $9.00 7.1% $9.24 5.5%
1996 10.20 4.9% 10.32 2.4% 6.84 – 8.04 3.1% 8.88 8.8% 8.40 4.5% 8.76 4.3%
1995 9.72 2.5% 10.08 1.2% 6.84 1.8% 7.80 4.8% 8.16 4.6% 8.04 4.7% 8.40 2.9%
Liquidity and Capital Resources
The Company believes that its internally generated net cash provided by operating activities will continue to be sufficient to enable it to
meet its operating expenses, capital improvements, debt service requirements and distributions to shareholders for the foreseeable future.
Net cash provided by operating activities (as determined in accordance with generally accepted accounting principles) reflects the cash
generated from the Company’s business before distributions to various equity holders, including the preferred shareholders, capital
expenditures or mandatory principal payments on debt.