Public Storage 2012 Annual Report Download - page 11

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9
Ancillary Operations
Our ancillary businesses provide the “icing on the cake” for our self-storage
business. With minimal capital investment, we sell merchandise and make
available tenant insurance to customers of our self-storage business and manage
third party facilities. We use the personnel, properties and operating systems
of our self-storage business to sell these products. Our ancillary businesses have
tremendous economics, i.e., high operating margins and lots of cash flow.
All of our ancillary businesses improved in 2012. Overall revenues and net operating
income grew by 9% and 11%, respectively. With more tenants participating in
the insurance program and higher average premiums than a year ago, the largest
ancillary business, tenant insurance, grew revenues and net operating income by
9% and 10%, respectively.
The growth of our ancillary businesses should continue in 2013 as we add
additional customers.
Net Operating Income: Ancillary Operations
(Amounts in millions)
2012 2011 2010
T
hird party management $ 2 $ 2 $ 2
Merchandise 11 7 5
Tenant reinsurance 64 58 55
European ancillary businesses 23 22 19
Total $ 100 $ 89 $ 81
Public Storage’s share $ 87 $ 78 $ 69
Total assets (before depreciation reserves) $ 10 $ 10 $ 10