Public Storage 2003 Annual Report Download - page 49

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Self-Storage Operations - Acquired Facilities
Over the past three years, we acquired 95 self-storage facilities containing 5,642,000 net rentable square
feet. Substantially all of these facilities were mature, stabilized facilities at the time of their acquisition. The
following table summarizes operating data with respect to these facilities.
ACQUIRED FACILITIES
Year Ended December 31, Year Ended December 31,
2003
2002 Change 2002 2001 Change
(Dollar amounts in thousands)
Rental income:
Self-storage facilities acquired in 2002 ................. $ 60,044 $ 53,497 $ 6,547 $ 53,497 $ - $ 53,497
Self-storage facilities acquired in 2001 ................. 560 445 115 445 143 302
Self-storage facilities acquired in 2000 ................. 4,685 3,762 923 3,762 3,375 387
Total rental income ........................................... 65,289 57,704 7,585 57,704 3,518 54,186
Cost of operations:
Self-storage facilities acquired in 2002 ................. $ 18,448 $ 15,822 $ 2,626 $ 15,822 $ - $ 15,822
Self-storage facilities acquired in 2001 ................. 200 191 9 191 66 125
Self-storage facilities acquired in 2000 ................. 2,020 1,377 643 1,377 3,155 (1,778)
Total cost of operations..................................... 20,668 17,390 3,278 17,390 3,221 14,169
Net operating income before depreciation:
Self-storage facilities acquired in 2002 ................. $ 41,596 $ 37,675 $ 3,921 $ 37,675 $ - $ 37,675
Self-storage facilities acquired in 2001 ................. 360 254 106 254 77 177
Self-storage facilities acquired in 2000 ................. 2,665 2,385 280 2,385 220 2,165
Net operating income ........................................ 44,621 40,314 4,307 40,314 297 40,017
Depreciation.............................................................. (11,946) (11,366) (580) (11,366) (2,948) (8,418)
Operating income (loss) ........................................ $ 32,675 $ 28,948 $ 3,727 $ 28,948 $ (2,651) $ 31,599
Weighted average square foot occupancy during the
period:
Self-storage facilities acquired in 2002................. 90.0% 85.4% 5.4% 85.4% - -
Self-storage facilities acquired in 2001................. 92.2% 67.4% 36.8% 67.4% 55.8% 20.8%
Self-storage facilities acquired in 2000................. 84.5% 79.1% 6.8% 79.1% 77.1% 2.6%
89.5% 84.5% 5.9% 84.5% 74.8% 13.0%
Number of self-storage facilities (at end of period)... 95 95 - 95 8 87
Net rentable square feet (in thousands, at end of
period)................................................................... 5,642 5,642 - 5,642 565 5,077
Cumulative acquisition cost (at end of period).......... $ 405,684 $ 405,684 $ - $ 405,684 $ 45,141 $360,543
Rental income and cost of operations for the Acquired Facilities have increased significantly in 2002 as
compared to 2001, due to the acquisition of 87 additional properties.
The 2002 acquisitions include 78 properties acquired from affiliated entities, including 47 properties
acquired on January 16, 2002 from an affiliated development joint venture and 31 properties acquired on January 1,
2002 in connection with business combinations with two affiliated partnerships (see Note 3 to the consolidated
financial statements). The 2002 acquisition also included nine self-storage facilities acquired from third parties for
an aggregate of $30,117,000 in cash. The 2001 acquisition includes one facility acquired from a third party for an
aggregate cost of $3,503,000.
Similar to our Consistent Group of facilities, the Acquired Facilities have experienced operating difficulties
over the last two years. Marketing and promotional strategies, as described above with respect to our Consistent