Public Storage 2003 Annual Report Download - page 44

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Self-Storage Operations - Consistent Group of Facilities
At December 31, 2003, we owned 1,164 self-storage facilities that have operated at a stabilized level of
operations throughout the three-year period. The Consistent Group of facilities contains approximately 67,666,000
net rentable square feet, representing approximately 81% of the aggregate net rentable square feet of our self-storage
portfolio. Revenues and operating expenses with respect to this group of properties are set forth in the above Self-
Storage Operations table under the caption, Consistent Group. The following table sets forth additional operating
data with respect to the Consistent Group of facilities:
CONSISTENT GROUP
Year Ended December 31, Year Ended December 31,
2003
2002
Percentage
Change 2002 2001
Percentage
Change
(Dollar amounts in thousands, except rents per square foot)
Base rental income .................................................... $691,606 $654,693 5.6% $654,693 $662,565 (1.2)%
Promotional discounts ............................................... (46,562) (18,423) 152.7% (18,423) (4,998) 268.6%
Adjusted base rental income ................................. 645,044 636,270 1.4% 636,270 657,567 (3.2)%
Late charges and administrative fees collected.......... 27,081 21,870 23.8% 21,870 23,116 (5.4)%
Total rental income ............................................... 672,125 658,140 2.1% 658,140 680,683 (3.3)%
Cost of operations:
Property taxes.................................................... 63,627 60,630 4.9% 60,630 58,604 3.5%
Direct property payroll...................................... 57,604 51,085 12.8% 51,085 47,717 7.1%
Cost of managing facilities................................ 21,186 19,542 8.4% 19,542 18,053 8.2%
Advertising and promotion................................ 19,544 18,208 7.3% 18,208 19,100 (4.7)%
Utilities.............................................................. 16,110 15,497 4.0% 15,497 15,773 (1.7)%
Repairs and maintenance................................... 19,331 15,340 26.0% 15,340 17,192 (10.8)%
Telephone reservation center ............................ 9,987 9,172 8.9% 9,172 9,914 (7.5)%
Property insurance............................................. 7,990 5,649 41.4% 5,649 5,542 1.9%
Other ................................................................. 17,409 15,403 13.0% 15,403 14,137 9.0%
Total cost of operations......................................... 232,788 210,526 10.6% 210,526 206,032 2.2%
Net operating income before depreciation................. 439,337 447,614 (1.8)% 447,614 474,651 (5.7)%
Depreciation .............................................................. (145,457) (142,710) 1.9% (142,710) (142,773) -
Operating income ...................................................... $293,880 $304,904 (3.6)% $304,904 $331,878 (8.1)%
Gross margin (before depreciation)........................... 65.4% 68.0% (3.8)% 68.0% 69.7% (2.4)%
Weighted average for the fiscal year:
Square foot occupancy (a)..................................... 89.1% 85.2% 4.6% 85.2% 88.9% (4.2)%
Realized annual rent per occupied square foot (b). $10.70 $11.04 (3.1)% $11.04 $10.93 1.0%
REVPAR (c). ........................................................ $9.53 $9.40 1.4% $9.40 $9.72 (3.3)%
Weighted average at December 31:
Square foot occupancy .......................................... 89.5% 84.3% 6.2% 84.3% 85.2% (1.1)%
In place annual rent per occupied square foot (d).. $11.69 $11.64 0.4% $11.64 $11.76 (1.0)%
Posted annual rent per square foot (e)................... $12.34 $11.65 5.9% $11.65 $13.33 (12.6)%
Total net rentable square feet (in thousands) ............. 67,666 67,666 - 67,666 67,666 -
(a) Square foot occupancies represent weighted average occupancy levels over the entire fiscal year.
(b) Realized annual rent per occupied square foot is computed by dividing adjusted base rental income by the weighted average
occupied square footage for the year. Realized rents per square foot take into consideration promotional discounts, bad debt
costs, credit card fees and other costs which reduce rental income from the contractual amounts due.
(c) Annualized revenue per available square foot (REVPAR) represents adjusted base rental income divided by total available
net rentable square feet.
(d) In place annual rent per occupied square foot represents contractual rents per occupied square foot without reductions for
promotional discounts.
(e) Posted annual rent per square foot represents the rents charged to new tenants prior to any promotional discounts.