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42
Selected Operating Data for the
Shurgard Europe Same Store Pool
(174 facilities):
Year Ended December 31,
Year Ended December 31,
Percentage
Percentage
2014
2013
Change
2013
2012
Change
(Dollar amounts in thousands, except weighted average data,
utilizing constant exchange rates) (a)
Revenues (including late charges and
administrative fees)
$
209,035
$
203,230
2.9%
$
203,230
$
206,284
(1.5)%
Less: Cost of operations (excluding
depreciation and amortization
expenses)
88,618
86,255
2.7%
86,255
85,786
0.5%
Net operating income (b)
$
120,417
$
116,975
2.9%
$
116,975
$
120,498
(2.9)%
Gross margin
57.6%
57.6%
0.0%
57.6%
58.4%
(1.4)%
Weighted average for the period:
Square foot occupancy
85.9%
80.9%
6.2%
80.9%
82.3%
(1.7)%
Realized annual rent, prior to late
charges and administrative fees, per (c):
Occupied square foot
$
25.84
$
26.69
(3.2)%
$
26.69
$
26.66
0.1%
Available square foot (“REVPAF”)
$
22.20
$
21.59
2.8%
$
21.59
$
21.94
(1.6)%
At December 31:
Square foot occupancy
87.8%
82.3%
6.7%
82.3%
80.4%
2.4%
Annual contract rent per occupied
square foot (d)
$
26.35
$
27.84
(5.4)%
$
27.84
$
27.70
0.5%
Total net rentable square feet
(in thousands)
9,244
9,244
-
9,244
9,244
-
Average Euro to the U.S. Dollar for
the period (a):
Constant exchange rates used herein
1.329
1.329
-
1.329
1.329
-
Actual historical exchange rates
1.329
1.328
0.1%
1.328
1.285
3.3%
(a) In order to isolate changes in the underlying operations from the impact of exchange rates, the amounts in this
table are presented on a constant exchange rate basis. The amounts for years ended December 31, 2013 and
2012 have been restated using the actual exchange rates for the year ended December 31, 2014.
(b) We present Shurgard Europe’s same-store net operating income or “NOI,” which is a non-GAAP financial
measure that excludes the impact of depreciation and amortization expense. We believe that NOI is a
meaningful measure of operating performance, because we utilize NOI in making decisions with respect to
capital allocations, in determining current property values, in evaluating property performance and in
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 because it is based upon historical cost. NOI is not a substitute for net income,
net operating cash flow, or other related GAAP financial measures, in evaluating Shurgard Europe’s operating
results.
(c) 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. Realized annual
rent per available square foot (“REVPAF”) is computed by dividing annualized rental income, before late
charges and administrative fees, by the total available net rentable square feet for the period. 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.