Public Storage 2000 Annual Report Download - page 36

P UBLIC S TORAGE , I NC . 2000 A NNUAL R EPORT
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per common share, the Company began to include 6,790,000 (7,000,000 x 97%) Class B common shares in the weighted average
common equivalent shares effective January 1, 2000. Weighted average diluted shares for the years ended 1998 and 1999 do not
include any shares with respect to the Class B common stock as these shares did not participate in distributions of the Company’s
earnings prior to January 1, 2000.
R EAL E STATE O PERATIONS
Self-storage operations: Our self-storage operations are by far the largest component of our operations, representing approximately
86% of total revenues generated during 2000. At the end of 1997, we had a total of 894 self-storage facilities included in our consolidated
financial statements. Since that time we have increased the number of self-storage facilities by 353 (1998 – 57 facilities, 1999 – 250
facilities and 2000 – 46 facilities). As a result of significant acquisitions of self-storage facilities in each of the past three years, year over
year comparisons as presented on the consolidated statements of income with respect to our self-storage operations are not meaningful.
To enhance year over year comparisons, the following table summarizes the operating results (before depreciation) of (i) the 891
self-storage facilities that are reflected in the financial statements for the entire three years ended December 31, 2000 (the “Consistent
Group”) and (ii) all other self-storage facilities for which operations were not reflected in the financial statements for the entire three
years ended December 31, 2000 (the “Other Facilities”):
Self-storage operations:
(Dollar amounts in thousands, Year Ended December 31, Percentage Year Ended December 31, Percentage
except rents per square foot) 2000 1999 Change 1999 1998 Change
Rental income
(a)
:
Consistent Group $508,878 $487,942 4.3% $487,942 $468,673 4.1%
Other Facilities 144,646 104,677 38.2% 104,677 19,618 433.6%
653,524 592,619 10.3% 592,619 488,291 21.4%
Cost of operations:
Consistent Group 155,458 146,931 5.8% 146,931 143,068 2.7%
Other Facilities 55,004 37,550 46.5% 37,550 6,308 495.3%
210,462 184,481 14.1% 184,481 149,376 23.5%
Net operating income:
Consistent Group 353,420 341,011 3.6% 341,011 325,605 4.7%
Other Facilities 89,642 67,127 33.5% 67,127 13,310 404.3%
443,062 408,138 8.6% 408,138 338,915 20.4%
Depreciation and Amortization 141,425 131,118 7.9% 131,118 103,045 27.2%
Operating Income $301,637 $277,020 8.9% $277,020 $235,870 17.4%
Consistent Group data:
Gross margin 69.5% 69.9% (0.4)% 69.9% 69.5% 0.4%
Weighted average:
Occupancy 91.9% 92.1% (0.2)% 92.1% 92.1% 0.0%
Realized annual rent per
square foot
(b)
$ 10.14 $ 9.69 4.6% $ 9.69 $ 9.29 4.3%
Scheduled annual rent
per square foot $ 11.18 $ 10.30 8.5% $ 10.30 $ 10.08 2.2%
Number of self-storage facilities
(at end of period):
Consistent Group 891 891 0.0% 891 891 0.0%
Other Facilities 356 310 14.8% 310 60 416.7%
Net rentable sq. ft. (at end of period):
Consistent Group 52,566 52,566 0.0% 52,566 52,566 0.0%
Other Facilities 22,004 18,903 16.4% 18,903 4,543 316.1%
(a) Rental income includes late charges and administrative fees. For the Consistent Group late charges and administrative fees in aggregate totaled
$18,816,000, $18,825,000 and $18,730,000 for 2000, 1999 and 1998, respectively.
(b) Realized annual rent per square foot is computed by annualizing rental income excluding late charges and administrative fees divided by the
weighted average occupied square footage for the period.