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36
Same Store Year-over-Year Change
Three Months Ended:
Rental
income
Realized rent
per occupied
square foot
Square foot
occupancy
March 31, 2009 (1.0)% (0.2)% (0.8)%
June 30, 2009 (3.9)% (2.9)% (1.0)%
September 30, 2009 (5.1)% (4.1)% (1.0)%
December 31, 2009 (4.1)% (3.8)% (0.3)%
For entire year: 2009 (3.5)% (2.7)% (0.9)%
March 31, 2010 (2.4)% (3.0)% 0.6%
June 30, 2010 (0.5)% (1.5)% 1.1%
September 30, 2010 1.0% (0.5)% 1.6%
December 31, 2010 2.0% 0.3% 1.7%
For entire year: 2010 0.0% (1.2)% 1.2%
Notwithstanding our increases in occupancy in 2010, we will continue to be competitive in our pricing and
discounting in order to compete with other operators to attract new incoming tenants. We expect to be more
aggressive in increasing rental rates to existing tenants in 2011 as compared to 2010. We expect the improved
operating trends that have been experienced in the last year to continue in the quarter ending March 31, 2011.
From a geographic standpoint, we experienced the greatest year-over-year revenue declines in our
Southeast markets, located in North and South Carolina, Georgia, and Florida, as well as the West Coast, which
includes Washington, Oregon and California. See Analysis of Regional Trends table that follows.
Cost of operations (excluding depreciation and amortization) increased by 0.7% in 2010, as compared to
2009. This increase was due primarily to increases in repairs and maintenance and direct property payroll, offset by
a reduction in media advertising and lower property tax expense. Cost of operations (excluding depreciation and
amortization) decreased by 1.9% in 2009 as compared to 2008. This decrease was due to reduced utilities, repairs
and maintenance, telephone reservation center, and property insurance which were offset in part by increases in
property taxes and other advertising and promotion expenses.
Property tax expense decreased 1.1% in 2010 as compared to 2009 due to reduced assessments of property
values combined with an increase in refunds associated with appeals for prior years¶ WD[ OLDELOLWLHV that were
experienced in Texas, Illinois, New York, Virginia and Florida. Property tax expense increased 2.7% in 2009 as
compared to 2008 primarily due to increases in tax rates combined with increases in assessments of property values.
We expect property tax expense growth of approximately 3.0% in 2011.
Direct property payroll expense increased by 2.1% in 2010, as compared to 2009, and was flat in 2009 as
compared to 2008. The increase in 2010 reflects higher incentive costs for our property personnel. For 2011, we
expect moderate growth in direct property payroll.
Media advertising for the Same Store Facilities decreased by 27.1% in 2010, as compared to the same
period in 2009, and decreased by 1.0% in 2009 as compared to 2008. The decrease in 2010 was due primarily to a
reduction in television advertising costs as we decreased the number of markets in which we advertised. Media
advertising primarily includes the cost of advertising on television and varies depending on a number of factors,
including our occupancy levels and demand for storage space.
Other advertising and promotion is comprised principally of yellow page and Internet advertising, which
increased 7.0% in 2010 as compared to 2009, and 10.2% during 2009 as compared to 2008. These increases are due
primarily to higher Internet advertising expenditures offset partially by lower yellow page advertising. During 2010,