Public Storage 1996 Annual Report Download - page 38

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
P UBLIC S TORAGE , I NC . 1996 A NNUAL R EPORT
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S AME -S TORE O PERATING T RENDS B Y R EGION
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:
1996 $65,222 8.61% $79,524 4.88% $39,704 1.31% $27,908 3.11% $31,123 9.00% $202,105 5.13% $445,586 5.35%
1995 60,053 5.77% 75,826 3.60% 39,191 2.69% 27,066 3.14% 28,552 7.67% 192,245 5.39% 422,933 4.87%
1994 56,777 4.40% 73,191 6.73% 38,163 4.32% 26,241 3.45% 26,518 12.64% 182,405 9.94% 403,295 7.73%
Cost of operations:
1996 $18,457 3.37% $24,580 5.72% $16,482 5.83% $10,772 3.46% $14,887 5.47% $73,034 6.69% $158,212 5.71%
1995 17,856 3.39% 23,250 (1.62)% 15,574 1.51% 10,412 1.06% 14,115 16.94% 68,453 3.51% 149,660 3.39%
1994 17,271 5.68% 23,633 5.52% 15,342 9.35% 10,303 4.03% 12,070 0.32% 66,133 4.19% 144,752 4.76%
Net operating income:
1996 $46,765 10.83% $54,944 4.50% $23,222 (1.67)% $17,136 2.89% $16,236 12.46% $129,071 4.26% $287,374 5.16%
1995 42,197 6.81% 52,576 6.09% 23,617 3.49% 16,654 4.49% 14,437 (0.08)% 123,792 6.47% 273,273 5.70%
1994 39,506 3.85% 49,558 7.39% 22,821 1.19% 15,938 3.09% 14,448 25.51% 116,272 13.51% 258,543 9.47%
Weighted avg. occupancy:
1996 94.5% 3.73% 87.3% 2.46% 89.6% 1.36% 88.7% 0.23% 92.8% – 92.2% 0.55% 91.2% 1.22%
1995 91.1% 3.52% 85.2% 2.40% 88.4% – 88.5% (1.34)% 92.8% 1.98% 91.7% 0.33% 90.1% 1.01%
1994 88.0% 0.57% 83.2% 3.35% 88.4% 1.61% 89.7% (1.32)% 91.0% 7.44% 91.4% 2.81% 89.2% 2.53%
Weighted avg. realized rents per sq. ft.:
1996 $10.20 4.94% $10.32 2.38% $6.84 – $8.04 3.10% $8.88 8.82% $8.40 4.48% $8.76 4.29%
1995 9.72 2.53% 10.08 1.20% 6.84 1.79% 7.80 4.84% 8.16 4.62% 8.04 4.69% 8.40 2.94%
1994 9.48 2.60% 9.96 3.75% 6.72 3.70% 7.44 3.33% 7.80 4.84% 7.68 6.67% 8.16 6.25%
Factors affecting regional trends in revenues and expenses include:
•acts of nature, including the Northridge earthquake (Southern California, 1994).
•new competition from property development (Texas)
•property valuations and related reassessments for purposes of property taxes (Illinois, 1995)
These factors have and are expected to continue to affect regional operating trends. During 1997, management expects additional property tax assessments due to higher valuations/rates,
resulting in increased property taxes.
L IQUIDITY AND C APITAL R ESOURCES
The Company has operated and intends to continue to operate in a self-sufficient manner without reliance on external sources of financing to fund
its ongoing operating needs. The Company believes that funds internally generated from ongoing operations 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.
Internally generated cash flows: The Company believes that important measures of its performance as well as its liquidity are cash provided by
operations, funds from operations (“FFO”) and the ability of these measures to fund the Company’s operating requirements (i.e. capital improve-
ments, principal payments on debt, and distribution requirements).
Net cash provided by operating activities (as determined in accordance with generally accepted accounting principles) reflects the cash gener-
ated from the Company’s business before distributions to various equity holders, including the preferred shareholders, capital expenditures or
mandatory principal payments on debt. Net cash provided by operations has increased over the past three years from $79.2 million in 1994 to
$245.2 million in 1996.