Public Storage 2011 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2011 Public Storage annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

49
respectively, a $1.9 million impairment charge on real estate and intangible assets incurred in 2010, a $8.2 million
impairment charge on intangible assets incurred in 2009, and $3.5 million in truck disposal expenses in 2009.
Net Operating Income
In our discussions above, we referred WRQHWRSHUDWLQJLQFRPH³12,´RIRXUVHOI-storage facilities, which
is a non-GAAP financial measure that excludes the impact of depreciation and amortization expense. Although
depreciation and amortization are a component of GAAP net income, we believe that NOI is a meaningful measure
of operating performance, because we utilize NOI in making decisions with respect to capital allocations, property
performance, and comparing period-to-period and market-to-market property operating results. In addition, we
believe the investment community utilizes NOI in determining operating performance and real estate values, and
does not consider depreciation expense as it is based upon historical cost. NOI is not a substitute for net operating
income after depreciation and amortization or net income in evaluating our operating results. The following
reconciles NOI generated by our self-storage segment to our net income in our December 31, 2011 financial
statements.
Year Ended December 31,
2011
2010
2009
(Amounts in thousands)
Net operating income:
Same Store Facilities .............................................
$ 1,033,556
$ 969,592
$ 967,364
Non Same Store Facilities .....................................
66,491
46,415
33,245
Total net operating income from self-storage ..
1,100,047
1,016,007
1,000,609
Depreciation and amortization expense:
Same Store Facilities .............................................
(311,122)
(316,749)
(323,148)
Non Same Store Facilities .....................................
(44,655)
(34,349)
(13,339)
Total depreciation and amortization expense
from self-storage ......................................
(355,777)
(351,098)
(336,487)
Net income:
Same Store Facilities .............................................
722,434
652,843
644,216
Non Same Store Facilities .....................................
21,836
12,066
19,906
Total net income from self-storage ..................
744,270
664,909
664,122
Ancillary operating revenue ......................................
114,089
104,381
107,597
Interest and other income ..........................................
32,333
29,017
29,813
Ancillary cost of operations ......................................
(37,396)
(33,689)
(36,011)
Depreciation and amortization, commercial ..............
(2,654)
(2,620)
(2,958)
General and administrative expense ..........................
(52,410)
(38,487)
(35,735)
Interest expense .........................................................
(24,222)
(30,225)
(29,916)
Equity in earnings of unconsolidated real estate
entities ...............................................................
58,704
38,352
53,244
Foreign currency exchange (loss) gain ......................
(7,287)
(42,264)
9,662
Gains on real estate sales and debt retirement, net ....
10,801
827
37,540
Asset impairment charges .........................................
(2,186)
(994)
-
Discontinued operations ............................................
2,417
6,907
(6,902)
Net income of the Company ......................................
$ 836,459
$ 696,114
$ 790,456