Public Storage 1999 Annual Report Download - page 40

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38
To enhance year over year comparisons, the following table summarizes the operating results (before depreciation) of (i) the 713 self-storage
facilities that are reflected in the financial statements for the entire three years ended December 31, 1999 (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,
1999 (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) 1999 1998 Change 1998 1997 Change
Rental income:
Consistent Group $378,252 $365,050 3.6% $365,050 $341,070 7.0%
Other Facilities 214,367 123,241 73.9% 123,241 44,470 177.1%
592,619 488,291 21.4% 488,291 385,540 26.7%
Cost of operations:
Consistent Group 113,930 111,287 2.4% 111,287 104,781 6.2%
Other Facilities 70,551 38,089 85.2% 38,089 13,182 188.9%
184,481 149,376 23.5% 149,376 117,963 26.6%
Net operating income:
Consistent Group 264,322 253,763 4.2% 253,763 236,289 7.4%
Other Facilities 143,816 85,152 68.9% 85,152 31,288 172.2%
$408,138 $338,915 20.4% $338,915 $267,577 26.7%
Consistent Group data:
Gross margin 69.9% 69.5% 0.4% 69.5% 69.3% 0.2%
Weighted average:
Occupancy 92.0% 92.1% (0.1)% 92.1% 91.4% 0.7%
Realized annual rent per square foot. $ 9.74 $ 9.39 3.7% $ 9.39 $ 8.84 6.2%
Scheduled annual rent per square foot $ 9.93 $ 9.73 2.1% $ 9.73 $ 9.37 3.8%
Number of self-storage facilities
(at end of period):
Consistent Group 713 713 0.0% 713 713 0.0%
Other Facilities 488 238 105.0% 238 181 31.5%
Net rentable sq. ft. (at end of period):
Consistent Group 42,220 42,220 0.0% 42,220 42,220 0.0%
Other Facilities 28,789 14,889 93.3% 14,889 11,351 31.2%
Operations with respect to the “other facilities” include a partial period of operations with respect to facilities that were acquired or disposed
of since January 1, 1997, as well as other facilities that were not operated on a stabilized basis throughout this period.
The Consistent Group of facilities experienced increased revenues in 1999 and 1998 of 3.6% and 7.0%, respectively, as compared to the
preceding year. The 3.6% increase in revenues in 1999 as compared to 1998 was caused primarily by a 3.7% increase in realized (accrual based
rates, net of discounts) rent per occupied square foot, offset by a 0.1% reduction in average occupancy levels. These improvements are due
principally to the national telephone reservation system which was implemented during 1996, as well as media advertising and promotional
activities.
In 1999, the rate of revenue growth over 1998 for the Consistent Group was less than the rate of growth experienced in 1998 over 1997.
This was primarily due to a leveling of occupancy levels in 1999 combined with a slower level of growth of realized rent per occupied square
foot.We expect to continue to experience similar growth rates in fiscal 2000 as we experienced in 1999.
U B L I C T O R A G E ,N C . 1999 N N U A L RE P O R T