Public Storage 2013 Annual Report Download - page 42

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32
due primarily to reduced media advertising. Based upon current trends in move-ins, move-outs, and
occupancies, we expect advertising and selling expense to be approximately flat in 2014.
Other direct property costs include administrative expenses incurred at the self-storage facilities,
such as property insurance, business license costs, bank charges related to processing the properties’ cash
receipts, credit card fees, and the cost of operating each property’s rental office including supplies and
telephone data communication lines. These costs decreased 2.0% in 2013 as compared to 2012 and 6.3%
in 2012 as compared to 2011. The decrease in 2013 is due to lower property insurance costs and certain
administrative cost-saving efforts, offset partially by an increase in credit card fees due primarily to an
increase in credit card collections. The decrease in 2012 is due principally to lower credit card fee rates.
We expect moderate increases in other direct property costs in 2014.
Allocated overhead represents administrative expenses for shared general corporate functions,
which are allocated to self-storage property operations to the extent their efforts are devoted to self-storage
operations. Such functions include data processing, human resources, operational accounting and finance,
marketing, and costs of senior executives (other than the Chief Executive Officer and Chief Financial
Officer, which are included in general and administrative expense). Allocated overhead decreased 1.5%
in 2013 as compared to 2012, and increased 1.9% in 2012 as compared to 2011. We expect inflationary
growth in allocated overhead in 2014 as compared to the 2013.
The following table summarizes selected quarterly financial data with respect to the Same Store
Facilities: