Public Storage 2000 Annual Report Download - page 43

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41
P
UBLIC
S
TORAGE
, I
NC
. 2000 A
NNUAL
R
EPORT
not included in the consolidated financial statements throughout each of the three years presented. The following table summarizes
the pre-depreciation historical operating results of the Same Store storage facilities:
Same Store storage facilities:
(historical property 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
(1)
$547,904 $524,880 4.4% $524,880 $503,274 4.3%
Cost of operations
(2)
164,197 154,974 6.0% 154,974 151,604 2.2%
Net operating income $383,707 $369,906 3.7% $369,906 $351,670 5.2%
Gross profit margin
(3)
70.0% 70.5% (0.5)% 70.5% 69.9% 0.6%
Weighted Average:
Occupancy 92.3% 92.5% (0.2)% 92.5% 92.5% 0.0%
Realized annual rent per sq. ft
(4)
$ 10.36 $ 9.89 4.8% $ 9.89 $ 9.46 4.5%
Scheduled annual rent per sq. ft $ 11.46 $ 10.50 9.1% $ 10.50 $ 10.20 2.9%
1. Rental income includes late charges and administrative fees that in aggregate totaled $19,937,000 in 2000, $19,908,000 in 1999, and
$19,874,000 in 1998.
2. Cost of operations consists of the following:
2000 1999 1998
Payroll expense $ 46,460 $ 45,293 $ 44,807
Property taxes 46,234 46,279 46,833
Repairs and maintenance 15,827 12,933 12,874
Advertising 8,632 7,501 5,187
Telephone reservation center costs 9,560 7,888 7,071
Utilities 11,944 11,646 11,625
Other 25,540 23,434 23,207
$164,197 $154,974 $151,604
3. Gross profit margin is computed by dividing property net operating income (before depreciation expense) by rental revenues.
4. Realized annual rent per square foot is computed by annualizing rental income excluding late charges and administrative fees divided by
weighted average occupied square footage for the year.
In early 1996, we implemented a national telephone reservation system designed to provide added customer service for all the
storage facilities under management. We believe 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.
Rental income for the Same Store facilities was net of promotional discounts totaling $14,035,000 in 2000 compared to
$14,830,000 in 1999 and $15,048,000 in 1998.
The 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.