Public Storage 2003 Annual Report Download - page 43

33
Self - storage operations summary: Year Ended December 31, Year Ended December 31,
2003
2002
Percentage
Change 2002 2001
Percentage
Change
(Dollar amounts in thousands)
Rental income (a):
Consistent Group (b)............................................. $672,125 $658,140 2.1% $658,140 $680,683 (3.3)%
Acquired Facilities (c)........................................... 65,289 57,704 13.1% 57,704 3,518 1540.3%
Expansion Facilities (d)......................................... 21,729 20,479 6.1% 20,479 20,694 (1.0)%
Developed Facilities (e) ........................................ 39,441 25,123 57.0% 25,123 14,870 69.0%
Total rental income ........................................... 798,584 761,446 4.9% 761,446 719,765 5.8%
Cost of operations:
Consistent Group................................................... 232,788 210,526 10.6% 210,526 206,032 2.2%
Acquired Facilities ................................................ 20,668 17,390 18.8% 17,390 3,221 439.9%
Expansion Facilities .............................................. 8,623 8,342 3.4% 8,342 9,537 (12.5)%
Developed Facilities.............................................. 18,826 13,957 34.9% 13,957 9,652 44.6%
Total cost of operations......................................... 280,905 250,215 12.3% 250,215 228,442 9.5%
Net operating income before depreciation:
Consistent Group................................................... 439,337 447,614 (1.8)% 447,614 474,651 (5.7)%
Acquired Facilities ................................................ 44,621 40,314 10.7% 40,314 297 13473.7%
Expansion Facilities .............................................. 13,106 12,137 8.0% 12,137 11,157 8.8%
Developed Facilities.............................................. 20,615 11,166 84.6% 11,166 5,218 114.0%
Total net operating income before depreciation .... 517,679 511,231 1.3% 511,231 491,323 4.1%
Depreciation.............................................................. (176,929) (170,887) 3.5% (170,887) (157,953) 8.2%
Operating income.................................................. $340,750 $340,344 0.1% $340,344 $333,370 2.1%
Number of self-storage facilities (at end of period)... 1,374 1,362 0.9% 1,362 1,259 8.2%
Net rentable square feet (in thousands, at end of
period):...................................................................... 83,013 82,019 1.2% 82,019 76,115 7.8%
(a) Rental income includes late charges, administrative fees and lien fees and is net of promotional discounts given. Rental
income does not include retail sales or truck rental income generated at the facilities.
(b) The Consistent Group includes 1,164 facilities containing 67,666,000 net rentable square feet that were owned throughout
the three years ended December 31, 2003, and operated at a mature, stabilized occupancy level throughout the periods
presented.
(c) The Acquired Facilities includes 95 facilities containing 5,642,000 net rentable square feet. These facilities were acquired in
the three-year period ending December 31, 2002. Substantially all of these facilities were mature, stabilized facilities at the
time of their acquisition.
(d) The Expansion Facilities include 35 facilities containing 3,807,000 net rentable square feet (of which 823,000 square feet is
industrial space developed for containerized storage activities). These facilities were owned for the entire three year period
ending December 31, 2003, however, year over year operating results are not comparable throughout the periods presented
due primarily to expansions in their net rentable square footage or their conversion into facilities used by our containerized
storage operations. Such construction activities can cause a decline in revenue levels, as existing capacity is made
unavailable in order to accommodate construction activities. During the four years ended December 31, 2003, we
completed construction with respect to these facilities totaling $129.5 million.
(e) The Developed Facilities includes 80 facilities containing 5,898,000 net rentable square feet (of which 712,000 square feet is
industrial space for use in containerized storage activities, see Containerized Storage and Discontinued Operations).
These facilities were developed and opened since January 1, 1999 at a total cost of $534.6 million.