Public Storage 2009 Annual Report Download - page 51

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33
Self-Storage Operations
Summary (Continued)
Year Ended December 31,
Year Ended December 31,
2009
2008
Percentage
Change
2008
2007
Percentage
Change
In place rents per occupied square
foot at period end (d):
Same Store Facilities ................
$ 13.46
$ 14.02
(4.0)%
$ 14.02
$ 13.89
0.9%
Other Facilities .........................
$ 14.65
$ 15.14
(3.2)%
$ 15.14
$ 15.62
(3.1)%
(a) Represents the results with respect to Shurgard Europe’s properties for the periods consolidated in our financial
statements. As described in Note 3 to our December 31, 2009 consolidated financial statements, effective
March 31, 2008, we deconsolidated Shurgard Europe. See also “Equity in Earnings of Real Estate Entities –
Investment in Shurgard Europe” for further analysis of the historical same store property operations of Shurgard
Europe.
(b) See “Net Operating Income or NOI” below.
(c) Realized annual rent per occupied square foot is computed by annualizing the result of dividing rental income
(which excludes late charges and administrative fees) by the weighted average occupied square feet for period.
Realized annual rent per occupied square foot takes into consideration promotional discounts and other items that
reduce rental income from the contractual amounts due. Late charges and administrative fees are excluded from
the computation of realized annual rent per occupied square foot. Exclusion of these amounts provides a better
measure of our ongoing level of revenue by excluding the volatility of late charges, which are dependent
principally upon the level of tenant delinquency, and administrative fees, which are dependent principally upon
the absolute level of move-ins for a period.
(d) In place annual rent per occupied square foot represents annualized contractual rents per occupied square foot
without reductions for promotional discounts and excludes late charges and administrative fees.
Net income with respect to our self-storage operations increased by $15.2 million during the year ended
December 31, 2009, when compared to the same period in 2008. This was due to a) declining amortization of tenant
intangible assets, b) a 1.8% reduction in cost of operations for the Same Store facilities, and c) a $12.1 million
increase in revenues with respect to the Other Facilities, offset by d) a 3.2% decrease in revenues for our Same Store
facilities and e) the deconsolidation of the facilities owned by Shurgard Europe effective April 1, 2008. Net income
with respect to our self-storage operations increased by $186.8 million during the year ended December 31, 2008,
when compared to 2007 due to decreased amortization of tenant intangible assets and increased revenues for the
Same Store facilities and the Other Facilities, offset partially by the deconsolidation of Shurgard Europe effective
April 1, 2008.