Public Storage 2010 Annual Report Download - page 19

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as soon as reasonably practicable after the reports and amendments are electronically filed with or furnished to the
SEC.
The Impact of Current Economic Factors
Our business has been negatively affected by the recessionary environment experienced in 2008 through
2010. Occupancies, rental rates and overall rental income at our facilities came under pressure as demand for self-
storage space softened. We responded by reducing rental rates, increasing promotional discounts, and increasing
our marketing activities to stimulate additional demand for our storage space and increase our market share.
Revenues generated by our Same Store facilities decreased from $1.468 billion in 2008 to $1.423 billion in 2009,
representing a reduction of 3.1%. Our operating metrics began to stabilize in the latter part of 2009 and started to
improve as we moved into the second half of 2010. Revenues generated by our Same Store facilities stabilized in
2010 at $1.428 billion, flat as compared to 2009.
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for more information regarding our long-term strategy to grow the cash flows and equity values of the Company.
Competition
Self-storage facilities generally draw customers who either reside or have their businesses located within a
three to five mile radius. Many of our facilities operate within three to five miles of well-located and well-managed
competitors that seek the same group of customers. Many of our competitors utilize the same marketing channels we
use, including yellow page advertising, Internet advertising, as well as signage and banners. As a result, competition
is significant and affects the occupancy levels, rental rates, rental income and operating expenses of our facilities.
While competition is significant, the self-storage industry remains fragmented in the U.S. We believe that
we own approximately 5% of the aggregate self-storage square footage in the U.S., and that collectively the five
largest self-storage operators in the U.S. own approximately 10% of the aggregate self-storage space in the U.S.,
with the remaining 90% owned by numerous private regional and local operators. This market fragmentation
enhances the advantage of our economies of scale and our brand relative to other operators VHH³%XVLQHVV Attributes
± (FRQRPLHVRI6FDOH´EHORZ, and provides an opportunity for growth through acquisitions over the long term.
In seeking investments, we compete with a wide variety of institutions and other investors. The amount of
funds available for real estate investments greatly influences the competition for ownership interests in facilities and,
by extension, the yields that we can achieve on newly acquired investments.
Business Attributes
We believe that we possess several primary business attributes that permit us to compete effectively:
Centralized information networks: Our facilities are part of comprehensive centralized reporting and
information networks which enable the management team to identify changing market conditions and operating
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automated basis.
National Telephone Reservation System: We operate a centralized telephone reservation system, which
provides added customer service and helps to maximize utilization of available self-storage space. Customers
calling either the toll-free telephone referral system, (800) 44-STORE, or a storage facility, are directed to the
national reservation system. A representative discusses with the customer space requirements, price and location
preferences and also informs the customer of other products and services provided by the Company and its
subsidiaries. We believe that the centralized telephone reservation system enhances our ability to market storage
space in the U.S. relative to handling these calls at individual properties, because it allows us to more effectively
offer all spaces at all facilities in the vicinity of a customer and to provide higher-quality selling efforts through
dedicated sales specialists.