Public Storage 2012 Annual Report Download - page 48

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Same Store Facilities
The Same Store Facilities represent those 1,941 facilities (122,464,000 net rentable square feet) that have
been owned and operated on a stabilized basis since January 1, 2010, and therefore provide meaningful comparisons
for 2010, 2011 and 2012. The following table summarizes the historical operating results of these facilities:
SAME STORE FACILITIES Year Ended December 31, Year Ended December 31,
2012 2011
Percentage
Change 2011 2010
Percentage
Change
Revenues: (Dollar amounts in thousands, except weighted average amounts)
Rental income ............................................................... $ 1,516,152 $ 1,442,684 5.1% $ 1,442,684 $1,383,232 4.3%
Late charges and administrative fees ............................ 80,168 79,371 1.0% 79,371 71,401 11.2%
Total revenues (a) ..................................................... 1,596,320 1,522,055 4.9% 1,522,055 1,454,633 4.6%
Cost of operations:
Property taxes ............................................................... 151,605 147,259 3.0% 147,259 144,502 1.9%
On-site property manager payroll ................................. 97,942 101,034 (3.1)% 101,034 99,928 1.1%
Repairs and maintenance .............................................. 39,998 45,237 (11.6)% 45,237 46,201 (2.1)%
Utilities ......................................................................... 36,255 37,732 (3.9)% 37,732 36,299 3.9%
Media advertising ......................................................... 6,326 10,542 (40.0)% 10,542 15,178 (30.5)%
Other advertising and selling expense ........................... 32,423 32,133 0.9% 32,133 31,991 0.4%
Other direct property costs ............................................ 35,257 35,937 (1.9)% 35,937 36,810 (2.4)%
Supervisory payroll ....................................................... 33,144 32,038 3.5% 32,038 29,828 7.4%
Allocated overhead ....................................................... 35,802 35,129 1.9% 35,129 34,094 3.0%
Total cost of operations (a) ....................................... 468,752 477,041 (1.7)% 477,041 474,831 0.5%
Net operating income (b)................................................... 1,127,568 1,045,014 7.9% 1,045,014 979,802 6.7%
Depreciation and amortization expense ............................. (313,173) (319,033) (1.8)% (319,033) (316,199) 0.9%
Net income ........................................................................ $ 814,395 $ 725,981 12.2% $ 725,981 $ 663,603 9.4%
Gross margin (before depreciation and amortization
expense)........................................................................ 70.6% 68.7% 2.8% 68.7% 67.4% 1.9%
Weighted average for the period:
Square foot occupancy (c) ............................................ 91.8% 91.2% 0.7% 91.2% 89.8% 1.6%
Realized annual rent, prior to late charges and
administrative fees, per:
Occupied square foot (d)(e) ................................... $ 13.49 $ 12.92 4.4% $ 12.92 $ 12.58 2.7%
Available square foot (“REVPAF”) (e)(f) ............. $ 12.38 $ 11.78 5.1% $ 11.78 $ 11.30 4.2%
Weighted average at December 31:
Square foot occupancy .................................................. 91.4% 89.6% 2.0% 89.6% 88.7% 1.0%
In place annual rent per occupied square foot (g) ......... $ 14 .42 $ 14.02 2.9 % $ 14.02 $ 13.65 2 .7%
a) Revenues and cost of operations do not include tenant reinsurance and retail operations, which are included on our
income statement under “ancillary revenues” and “ancillary operating expenses.”
b) See “Net Operating Income” below for a reconciliation of this non-GAAP measure to our net income in our statements
of income for the years ended December 31, 2012, 2011 and 2010.
c) Square foot occupancies represent weighted average occupancy levels over the entire period.
d) Realized annual rent per occupied square foot is computed by dividing annualized rental income, before late charges
and administrative fees, by the weighted average occupied square feet for the period.
e) These measures exclude late charges and administrative fees in order to provide a better measure of our ongoing level
of revenue. Late charges are dependent upon the level of delinquency and administrative fees are dependent upon the
level of move-ins. In addition, the rates charged for late charges and administrative fees can vary independently from
rental rates. These measures take into consideration promotional discounts, which reduce rental income.