Public Storage 2009 Annual Report Download - page 49

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31
Results of Operations
Operating results for 2009 as compared to 2008: Net income for the year ended December 31, 2009 was
$790.5 million compared to $973.9 million for the same period in 2008, representing a decrease of $183.4 million.
This decrease is primarily due to (i) a gain of $344.7 million in the year ended December 31, 2008 related to our
disposition of an interest in Shurgard Europe, (ii) a $37.9 million reduction in net operating income with respect to
our Same Store Facilities described below, and (iii) an impairment charge included in discontinued operations with
respect to intangible assets totaling $8.2 million in the year ended December 31, 2009, partially offset by (iv) a
$49.9 million reduction in depreciation and amortization related to our domestic assets, primarily representing
reduced intangible amortization, (v) a foreign exchange gain of $9.7 million during the year ended December 31,
2009 as compared to a loss of $25.4 million during the same period in 2008, (vi) a gain on disposition of
$30.3 million related to an equity offering by PSB, and (vii) a reduction in general and administrative expenses due
to $27.9 million in incentive compensation incurred in the year ended December 31, 2008 related to our disposition
of an interest in Shurgard Europe.
Revenues for the Same Store Facilities decreased 3.2% or $46.1 million in the year ended December 31,
2009 as compared to the same period in 2008, due to a 2.8% reduction in realized rent per occupied square foot,
combined with a 0.9% reduction in average occupancies. Cost of operations for the Same Store Facilities decreased
1.8% or $8.2 million in the year ended December 31, 2009 as compared to the same period in 2008. Net operating
income for our Same Store Facilities decreased 3.9% or $37.9 million for the year ended December 31, 2009 as
compared to the same period in 2008.
For the year ended December 31, 2009, net income allocable to our common shareholders was
$586.0 million or $3.47 per common share on a diluted basis compared to $705.8 million or $4.18 per common
share for the same period in 2008, representing a decrease of $119.8 million or $0.71 per common share on a diluted
basis. These decreases are primarily due to the net impact of the factors described above, offset by a $44.4 million
reduction in earnings allocated to our preferred unitholders and preferred shareholders in the year ended December
31, 2009 as compared to the same period in 2008 associated with the redemption of preferred securities occurring in
both periods.
Operating results for 2008 as compared to 2007: Net income for the year ended December 31, 2008 was
$973.9 million compared to $487.1 million for the same period in 2007, representing an improvement of
$486.8 million. This improvement is primarily due to a gain of $344.7 million recognized on the disposition of a
51% interest in Shurgard Europe on March 31, 2008, improvements in net operating income with respect to our
domestic self-storage facilities and a reduction in amortization of intangible assets, offset by a foreign currency
exchange loss of $25.4 million for the year ended December 31, 2008 as compared to a foreign exchange gain of
$58.4 million in 2007.
Comparisons of our revenues and expenses for the year ended December 31, 2008 to the year ended
December 31, 2007 are significantly impacted by the acquisition by an institutional investor of a 51% interest in
Shurgard Europe on March 31, 2008, which resulted in the deconsolidation of Shurgard Europe. Shurgard Europe’s
revenues and expenses after March 31, 2008 are excluded from our statement of operations and, instead, our 49%
equity share of Shurgard Europe’s operating results are included in the line item “equity in earnings of real estate
entities” and we also record interest and other income with respect to (i) the interest received on our intercompany
loan from Shurgard Europe and (ii) license fee income.
For the year ended December 31, 2008, net income allocable to our common shareholders was
$705.8 million or $4.18 per common share on a diluted basis compared to $199.0 million or $1.17 per common
share for the same period in 2007, representing an increase of $506.8 million or $3.01 per common share on a
diluted basis. These increases are primarily due to the net impact of the factors described above, partially offset by a
$33.9 million reduction in earnings allocated to our preferred shareholders in the year ended December 31, 2008
associated with the repurchase of securities.