Public Storage 2007 Annual Report Download - page 5

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Our ancillary operations consist of businesses that contribute to or are incidental to our
self-storage business. These include the rental of trucks, the sale of locks, boxes and
packing materials and the re-insurance of customers’ stored goods.
Our properties are located in or near major metropolitan centers and serve customers
within a three-to-five mile radius. All operations are conducted on a localized basis and
are adapted to particular market customs, competition and customer preferences.
Customers are identified and targeted through a variety of marketing programs,
including property signage and banners, the Internet, television, on-site sales functions,
and for commercial properties, through local brokers. We have over one million
customers and generally must attract over one million new or repeat customers each year
due to customer turnover.
Summary of Financial Results
In 2007, total revenues grew by 32% to $1.8 billion, benefiting from a full year of
operating the acquired Shurgard domestic and European facilities compared to four
months in 2006. Net income to common shareholders rose by $152 million to $199
million. These results were driven by the organic growth in our legacy Same Store
properties and improvements in our newly developed, recently expanded and acquired
self-storage facilities, as well as from the acquired Shurgard facilities.
Our funds from operations per share improved in 2007 by 39% to $4.97 from $3.57 in
2006. Excluding items associated with foreign currency gains, Shurgard acquisition
integration costs and other non-cash charges, the per share amounts increased by 13% to
$4.73 in 2007 from $4.17 in 2006 from our core operations. These comparisons are
reflected in the following table.