Public Storage 2014 Annual Report Download - page 20

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We report annually to the SEC on Form 10-K, which includes financial statements certified by our
independent registered public accountants. We also report quarterly to the SEC on Form 10-Q, which
includes unaudited financial statements with such filings. We expect to continue such reporting.
On our website, www.publicstorage.com, we make available, free of charge, our Annual Reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those
reports as soon as reasonably practicable after the reports and amendments are electronically filed with or
furnished to the SEC.
Competition
We believe that storage customers generally store their goods within a five mile radius of their
home or business. Most of our facilities compete with other nearby self-storage facilities that use the same
marketing channels we use, including Internet advertising, signage, and banners, and offer the same service
we do. As a result, competition is significant and affects the occupancy levels, rental rates, rental income
and operating expenses of our facilities.
While competition is significant, the self-storage industry remains fragmented in the U.S. We
believe that we own approximately 6% of the aggregate self-storage square footage in the U.S., and that
collectively the five largest self-storage operators in the U.S. own approximately 13%, with all other self-
storage space owned by numerous private regional and local operators. We believe this market
fragmentation enhances the advantage of our brand name, as well as the economies of scale we enjoy with
approximately 71% of our 2014 same-store revenues in the 20 Metropolitan Statistical Areas (each, an
“MSA”, as defined by the U.S. Census Bureau) with the highest population levels.
Such fragmentation also provides opportunities for us to acquire additional facilities; however, we
compete with a wide variety of institutions and other investors who also view self-storage facilities as
attractive investments. The amount of capital available for real estate investments greatly influences the
competition for ownership interests in facilities and, by extension, the yields that we can achieve on newly
acquired investments.
Business Attributes
We believe that we possess several primary business attributes that permit us to compete
effectively:
Centralized information networks: Our centralized reporting and information network enables us
to identify changing market conditions and operating trends as well as analyze customer data and quickly
change each of our individual properties’ pricing and promotions on an automated basis.
Convenient shopping experience: Customers can conveniently shop the space available at our
facilities, reviewing attributes such as facility location, size, amenities such as climate-control, as well as
pricing, and learn about ancillary businesses through the following marketing channels:
x Our Desktop and Mobile Websites: The online marketing channel continues to grow in
prominence, with approximately 60% of our move-ins in 2014 sourced through our
websites, as compared to 36% in 2010. In addition, we believe that many of our
customers who directly call our call center, or who move-in to a facility on a walk-in
basis, have already reviewed our pricing and space availability through our websites. We
invest extensively in advertising on the Internet to attract potential customers, primarily
through the use of search engines, and we regularly update and improve our websites to
enhance their productivity.
x Our Call Center: Our call center is staffed by skilled sales specialists. Customers reach
our call center by calling our advertised toll-free telephone referral number, (800) 44-