GLENDALE, Calif. -- (Business Wire)
Public Storage (NYSE:PSA) announced today operating results for the
three and nine months ended September 30, 2016.
Operating Results for the Three Months Ended
September 30, 2016
For the three months ended September 30, 2016, net income allocable to
our common shareholders was $309.0 million or $1.78 per diluted common
share, compared to $273.5 million or $1.58 in 2015 representing an
increase of $35.5 million or $0.20. The increase is primarily due to (i)
a $28.3 million increase in self-storage net operating income (described
below) and (ii) an $8.0 million decrease in income allocated to
preferred shareholders.
The $28.3 million increase in self-storage net operating income is a
result of an $18.1 million increase in our Same Store Facilities (as
defined below) and a $10.2 million increase in our Non Same Store
Facilities (as defined below). Revenues for the Same Store Facilities
increased 5.1% or $26.6 million in the three months ended September 30,
2016 as compared to 2015, due primarily to higher realized annual rent
per occupied square foot. Cost of operations for the Same Store
Facilities increased by 6.4% or $8.5 million in the three months ended
September 30, 2016 as compared to 2015, due primarily to increased
property taxes, on-site property manager payroll, and allocated
overhead. The increase in net operating income for the Non Same Store
Facilities is due primarily to the impact of 308 self-storage facilities
acquired, developed or expanded since January 2013.
Operating Results for the Nine Months Ended
September 30, 2016
For the nine months ended September 30, 2016, net income allocable to
our common shareholders was $831.1 million or $4.78 per diluted common
share, compared to $750.0 million or $4.32 in 2015 representing an
increase of $81.1 million or $0.46. The increase is primarily due to (i)
a $107.1 million increase in self-storage net operating income offset
partially by (ii) an $18.0 million increase in allocation to our
preferred shareholders as a result of redemption activities and (iii) a
$28.1 million reduction in gains on sales of real estate investments,
including our equity share.
The $107.1 million increase in self-storage net operating income is a
result of a $76.3 million increase in our Same Store Facilities and a
$30.8 million increase in our Non Same Store Facilities. Revenues for
the Same Store Facilities increased 5.8% or $86.5 million in the nine
months ended September 30, 2016 as compared to 2015, due primarily to
higher realized annual rent per occupied square foot. Cost of operations
for the Same Store Facilities increased by 2.5% or $10.2 million in the
nine months ended September 30, 2016 as compared to 2015, due primarily
to increased property taxes, on-site property manager payroll and
repairs and maintenance, offset partially by lower snow removal costs.
The increase in net operating income for the Non Same Store Facilities
is due primarily to the impact of 308 self-storage facilities acquired,
developed or expanded since January 2013.
Funds from Operations
For the three months ended September 30, 2016, funds from operations
(“FFO”) was $2.51 per diluted common share, as compared to $2.27 in
2015, representing an increase of 10.6%. FFO is a non-GAAP (generally
accepted accounting principles) term defined by the National Association
of Real Estate Investment Trusts and generally represents net income
before depreciation, gains and losses and impairment charges with
respect to real estate assets.
For the nine months ended September 30, 2016, FFO was $6.94 per diluted
common share, as compared to $6.33 in 2015, representing an increase of
9.6%.
We also present “Core FFO per share,” a non-GAAP measure that represents
FFO per share excluding the impact of (i) foreign currency exchange
gains and losses, (ii) EITF D-42 charges related to the redemption of
preferred securities, (iii) general and administrative expenses
associated with the acquisition of self-storage facilities and (iv)
certain other non-cash and/or nonrecurring income or expense items. We
review Core FFO per share to evaluate our ongoing operating performance,
and we believe it is used by investors and REIT analysts in a similar
manner. However, Core FFO per share is not a substitute for net income
per share. Because other REITs may not compute Core FFO per share in the
same manner as we do, may not use the same terminology or may not
present such a measure, Core FFO per share may not be comparable among
REITs.
The following table reconciles from FFO per share to Core FFO per share
(unaudited):
| |
|
|
| | |
|
| | |
|
| |
|
| | |
|
| | |
|
| |
| | | | |
Three Months Ended September 30,
| | |
Nine Months Ended September 30,
|
| | | | | | | | | | | | |
Percentage
| | | | | | | | | | |
Percentage
|
| | | | |
2016
| | |
2015
| | |
Change
| | |
2016
| | |
2015
| | |
Change
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
FFO per share
| | | |
$
|
2.51
| | |
$
|
2.27
| | |
10.6
|
%
| | |
$
|
6.94
| | |
$
|
6.33
| | |
9.6
|
%
|
Eliminate the per share impact of items excluded from Core FFO:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
-
| | | |
-
| | | |
Foreign currency exchange loss, net, including our equity share
| | | | |
0.02
| | | |
-
| | | | | | |
0.03
| | | |
-
| | | |
Application of EITF D-42
| | | | |
-
| | | |
0.03
| | | | | | |
0.15
| | | |
0.06
| | | |
Property acquisition costs
| | | | |
-
| | | |
0.01
| | | | | | |
0.01
| | | |
0.03
| | | |
Other items
| | | |
|
-
| | |
|
0.02
| | | | | |
|
0.01
| | |
|
0.02
| | | |
Core FFO per share
| | | |
$
|
2.53
| | |
$
|
2.33
| | |
8.6
|
%
| | |
$
|
7.14
| | |
$
|
6.44
| | |
10.9
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
Property Operations – Same Store Facilities
The Same Store Facilities represent those facilities that have been
owned and operated on a stabilized level of occupancy, revenues and cost
of operations since January 1, 2014. We review the operations of our
Same Store Facilities, which excludes facilities whose operating trends
are significantly affected by factors such as facilities damaged by
casualty events, as well as recently developed or acquired facilities,
to more effectively evaluate the ongoing performance of our self-storage
portfolio in 2014, 2015, and 2016. We believe the Same Store information
is used by investors and analysts in a similar manner. The Same Store
pool decreased from the 2,003 facilities at June 30, 2016 to 2,000
facilities at September 30, 2016, due primarily to casualty damage. The
following table summarizes the historical operating results of these
2,000 facilities (127.2 million net rentable square feet) that represent
approximately 84% of the aggregate net rentable square feet of our U.S.
consolidated self-storage portfolio at September 30, 2016.
|
|
|
| | |
|
| | |
|
| |
|
| | |
|
| | |
|
| |
Selected Operating Data for the Same | | | | | | | | | | | | | | | | | | | | | | | |
Store Facilities (2,000 facilities) | | | | | | | | | | | | | | | | | | | | | | | |
(unaudited): | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Three Months Ended September 30,
| | |
Nine Months Ended September 30,
|
| | | | | | | | | | | |
Percentage
| | | | | | | | | | |
Percentage
|
| | | |
2016
| | |
2015
| | |
Change
| | |
2016
| | |
2015
| | |
Change
|
| | | | |
(Dollar amounts in thousands, except for per square foot amounts)
|
Revenues:
| | | | | | | | | | | | | | | | | | | | | | | |
Rental income
| | | |
$
|
516,971
| | | |
$
|
491,235
| | | |
5.2
|
%
| | |
$
|
1,495,273
| | | |
$
|
1,412,123
| | | |
5.9
|
%
|
Late charges and administrative fees
| | | |
|
25,301
|
| | |
|
24,478
|
| | |
3.4
|
%
| | |
|
72,050
|
| | |
|
68,733
|
| | |
4.8
|
%
|
Total revenues (a)
| | | |
|
542,272
|
| | |
|
515,713
|
| | |
5.1
|
%
| | |
|
1,567,323
|
| | |
|
1,480,856
|
| | |
5.8
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
Cost of operations:
| | | | | | | | | | | | | | | | | | | | | | | |
Property taxes
| | | | |
52,629
| | | | |
49,946
| | | |
5.4
|
%
| | | |
158,278
| | | | |
150,861
| | | |
4.9
|
%
|
On-site property manager payroll
| | | | |
27,160
| | | | |
25,449
| | | |
6.7
|
%
| | | |
81,210
| | | | |
77,866
| | | |
4.3
|
%
|
Supervisory payroll
| | | | |
9,252
| | | | |
8,933
| | | |
3.6
|
%
| | | |
27,830
| | | | |
27,052
| | | |
2.9
|
%
|
Repairs and maintenance
| | | | |
10,760
| | | | |
10,179
| | | |
5.7
|
%
| | | |
28,847
| | | | |
26,920
| | | |
7.2
|
%
|
Snow removal
| | | | |
-
| | | | |
-
| | | |
0.0
|
%
| | | |
3,332
| | | | |
8,451
| | | |
(60.6
|
)%
|
Utilities
| | | | |
10,417
| | | | |
10,469
| | | |
(0.5
|
)%
| | | |
29,111
| | | | |
30,373
| | | |
(4.2
|
)%
|
Advertising and selling expense
| | | | |
7,573
| | | | |
6,954
| | | |
8.9
|
%
| | | |
18,205
| | | | |
18,687
| | | |
(2.6
|
)%
|
Other direct property costs
| | | | |
13,556
| | | | |
13,036
| | | |
4.0
|
%
| | | |
40,602
| | | | |
39,463
| | | |
2.9
|
%
|
Allocated overhead
| | | |
|
10,633
|
| | |
|
8,520
|
| | |
24.8
|
%
| | |
|
29,919
|
| | |
|
27,484
|
| | |
8.9
|
%
|
Total cost of operations (a)
| | | |
|
141,980
|
| | |
|
133,486
|
| | |
6.4
|
%
| | |
|
417,334
|
| | |
|
407,157
|
| | |
2.5
|
%
|
Net operating income (b)
| | | |
$
|
400,292
|
| | |
$
|
382,227
|
| | |
4.7
|
%
| | |
$
|
1,149,989
|
| | |
$
|
1,073,699
|
| | |
7.1
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
Gross margin
| | | | |
73.8
|
%
| | | |
74.1
|
%
| | |
(0.4
|
)%
| | | |
73.4
|
%
| | | |
72.5
|
%
| | |
1.2
|
%
|
| | | | | | | | | | | | | | | | | | | | | | |
|
Weighted average for the period:
| | | | | | | | | | | | | | | | | | | | | | | |
Square foot occupancy
| | | | |
95.3
|
%
| | | |
95.3
|
%
| | |
0.0
|
%
| | | |
94.8
|
%
| | | |
94.7
|
%
| | |
0.1
|
%
|
Realized annual rental income per (c):
| | | | | | | | | | | | | | | | | | | | | | | |
Occupied square foot
| | | |
$
|
17.06
| | | |
$
|
16.21
| | | |
5.2
|
%
| | |
$
|
16.54
| | | |
$
|
15.63
| | | |
5.8
|
%
|
Available square foot (“REVPAF”)
| | | |
$
|
16.25
| | | |
$
|
15.44
| | | |
5.2
|
%
| | |
$
|
15.67
| | | |
$
|
14.80
| | | |
5.9
|
%
|
At September 30:
| | | | | | | | | | | | | | | | | | | | | | | |
Square foot occupancy
| | | | | | | | | | | | | | | |
94.2
|
%
| | | |
94.2
|
%
| | |
0.0
|
%
|
Annual contract rent per occupied square foot (d)
| | | | | | | | | | | | | | |
$
|
17.70
| | | |
$
|
16.91
| | | |
4.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
(a)
|
|
|
Revenues and cost of operations do not include ancillary revenues
and expenses generated at the facilities with respect to tenant
reinsurance and retail sales.
|
|
(b)
| | |
See attached reconciliation of self-storage net operating income
(“NOI”) to operating income.
|
|
(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
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.
|
|
(d)
| | |
Contract rent represents the applicable contractual monthly rent
charged to our tenants, excluding the impact of promotional
discounts, late charges and administrative fees.
|
| | |
|
The following table summarizes selected quarterly financial data with
respect to the Same Store Facilities (unaudited):
| |
|
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | | | |
For the Quarter Ended
| | | | |
| | | | |
March 31
| | |
June 30
| | |
September 30
| | |
December 31
| | |
Entire Year
|
| | | | |
(Amounts in thousands, except for per square foot amounts)
|
Total revenues:
| | | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
504,952
| | | |
$
|
520,099
| | | |
$
|
542,272
| | | | | | | | | |
|
2015
| | | |
$
|
474,337
| | | |
$
|
490,806
| | | |
$
|
515,713
| | | |
$
|
506,869
| | | |
$
|
1,987,725
| |
| | | | | | | | | | | | | | | | | | | | | |
|
Total cost of operations:
| | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
139,511
| | | |
$
|
135,843
| | | |
$
|
141,980
| | | | | | | | | |
|
2015
| | | |
$
|
143,301
| | | |
$
|
130,370
| | | |
$
|
133,486
| | | |
$
|
107,080
| | | |
$
|
514,237
| |
| | | | | | | | | | | | | | | | | | | | | |
|
Property taxes:
| | | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
52,720
| | | |
$
|
52,929
| | | |
$
|
52,629
| | | | | | | | | |
|
2015
| | | |
$
|
50,508
| | | |
$
|
50,407
| | | |
$
|
49,946
| | | |
$
|
27,845
| | | |
$
|
178,706
| |
| | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
Repairs and maintenance, including snow removal expenses:
| | | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
11,111
| | | |
$
|
10,308
| | | |
$
|
10,760
| | | | | | | | | |
|
2015
| | | |
$
|
16,167
| | | |
$
|
9,025
| | | |
$
|
10,179
| | | |
$
|
10,300
| | | |
$
|
45,671
| |
| | | | | | | | | | | | | | | | | | | | | |
|
Advertising and selling expense:
| | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
5,080
| | | |
$
|
5,552
| | | |
$
|
7,573
| | | | | | | | | |
|
2015
| | | |
$
|
6,192
| | | |
$
|
5,541
| | | |
$
|
6,954
| | | |
$
|
6,432
| | | |
$
|
25,119
| |
| | | | | | | | | | | | | | | | | | | | | |
|
REVPAF:
| | | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
15.13
| | | |
$
|
15.63
| | | |
$
|
16.25
| | | | | | | | | |
|
2015
| | | |
$
|
14.22
| | | |
$
|
14.73
| | | |
$
|
15.44
| | | |
$
|
15.19
| | | |
$
|
14.90
| |
| | | | | | | | | | | | | | | | | | | | | |
|
Weighted average realized annual rent per occupied square foot:
| | | | | | | | | | | | | | | | | | | | | |
|
2016
| | | |
$
|
16.17
| | | |
$
|
16.39
| | | |
$
|
17.06
| | | | | | | | | |
|
2015
| | | |
$
|
15.23
| | | |
$
|
15.45
| | | |
$
|
16.21
| | | |
$
|
16.19
| | | |
$
|
15.77
| |
| | | | | | | | | | | | | | | | | | | | | |
|
Weighted average occupancy levels for the period:
| | | | | | | | | | | | | | | | | | | | | |
|
2016
| | | | |
93.6
|
%
| | | |
95.4
|
%
| | | |
95.3
|
%
| | | | | | | | |
|
2015
| | | | |
93.4
|
%
| | | |
95.4
|
%
| | | |
95.3
|
%
| | | |
93.9
|
%
| | | |
94.5
|
%
|
| | | | | | | | | | | | | | | | | | | | | |
|
Property Operations – Non Same Store Facilities
The Non Same Store Facilities at September 30, 2016 represent 308
facilities that were not stabilized with respect to occupancies or
rental rates since January 1, 2014 or that we did not own as of January
1, 2014. The following table summarizes operating data with respect to
the Non Same Store Facilities (unaudited):
|
|
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
NON SAME STORE | | | |
Three Months Ended September 30,
| | |
Nine Months Ended September 30,
|
FACILITIES | | | |
2016
| | |
2015
| | |
Change
| | |
2016
| | |
2015
| | |
Change
|
| | | |
(Dollar amounts in thousands, except for per square foot amounts)
|
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
2016 acquisitions
| | | |
$
|
5,292
| | |
$
|
-
| | |
$
|
5,292
| | |
$
|
10,395
| | | |
$
|
-
| | | |
$
|
10,395
| |
2015 acquisitions
| | | | |
4,076
| | | |
1,861
| | | |
2,215
| | | |
11,448
| | | | |
3,503
| | | | |
7,945
| |
2014 acquisitions
| | | | |
12,081
| | | |
11,037
| | | |
1,044
| | | |
34,516
| | | | |
31,043
| | | | |
3,473
| |
2013 acquisitions
| | | | |
25,645
| | | |
23,867
| | | |
1,778
| | | |
74,037
| | | | |
67,716
| | | | |
6,321
| |
Developed facilities
| | | | |
6,579
| | | |
2,842
| | | |
3,737
| | | |
16,030
| | | | |
5,858
| | | | |
10,172
| |
Other facilities
| | | |
|
27,212
| | |
|
25,656
| | |
|
1,556
| | |
|
78,381
|
| | |
|
73,665
|
| | |
|
4,716
|
|
Total revenues
| | | |
|
80,885
| | |
|
65,263
| | |
|
15,622
| | |
|
224,807
|
| | |
|
181,785
|
| | |
|
43,022
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Cost of operations before depreciation and amortization expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
2016 acquisitions
| | | | |
1,937
| | | |
-
| | | |
1,937
| | | |
3,662
| | | | |
-
| | | | |
3,662
| |
2015 acquisitions
| | | | |
1,362
| | | |
574
| | | |
788
| | | |
3,929
| | | | |
1,152
| | | | |
2,777
| |
2014 acquisitions
| | | | |
3,345
| | | |
3,166
| | | |
179
| | | |
9,591
| | | | |
9,303
| | | | |
288
| |
2013 acquisitions
| | | | |
7,536
| | | |
7,197
| | | |
339
| | | |
21,747
| | | | |
21,163
| | | | |
584
| |
Developed facilities
| | | | |
2,989
| | | |
1,127
| | | |
1,862
| | | |
7,422
| | | | |
2,700
| | | | |
4,722
| |
Other facilities
| | | |
|
6,756
| | |
|
6,460
| | |
|
296
| | |
|
19,770
|
| | |
|
19,603
|
| | |
|
167
|
|
Total cost of operations
| | | |
|
23,925
| | |
|
18,524
| | |
|
5,401
| | |
|
66,121
|
| | |
|
53,921
|
| | |
|
12,200
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
2016 acquisitions
| | | | |
3,355
| | | |
-
| | | |
3,355
| | | |
6,733
| | | | |
-
| | | | |
6,733
| |
2015 acquisitions
| | | | |
2,714
| | | |
1,287
| | | |
1,427
| | | |
7,519
| | | | |
2,351
| | | | |
5,168
| |
2014 acquisitions
| | | | |
8,736
| | | |
7,871
| | | |
865
| | | |
24,925
| | | | |
21,740
| | | | |
3,185
| |
2013 acquisitions
| | | | |
18,109
| | | |
16,670
| | | |
1,439
| | | |
52,290
| | | | |
46,553
| | | | |
5,737
| |
Developed facilities
| | | | |
3,590
| | | |
1,715
| | | |
1,875
| | | |
8,608
| | | | |
3,158
| | | | |
5,450
| |
Other facilities
| | | |
|
20,456
| | |
|
19,196
| | |
|
1,260
| | |
|
58,611
|
| | |
|
54,062
|
| | |
|
4,549
|
|
| | | | | | | | | | | | |
|
Net operating income (a)
| | | |
$
|
56,960
| | |
$
|
46,739
| | |
$
|
10,221
| | |
$
|
158,686
|
| | |
$
|
127,864
|
| | |
$
|
30,822
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
At September 30: | | | | | | | | | | | | | | | | | | | | | | | | | |
Square foot occupancy:
| | | | | | | | | | | | | | | | | | | | | | | | | |
2016 acquisitions
| | | | | | | | | | | | | | | | |
91.3
|
%
| | | |
-
| | | | |
-
| |
2015 acquisitions
| | | | | | | | | | | | | | | | |
91.2
|
%
| | | |
89.4
|
%
| | | |
2.0
|
%
|
2014 acquisitions
| | | | | | | | | | | | | | | | |
93.5
|
%
| | | |
93.9
|
%
| | | |
(0.4
|
)%
|
2013 acquisitions
| | | | | | | | | | | | | | | | |
93.1
|
%
| | | |
93.4
|
%
| | | |
(0.3
|
)%
|
Developed facilities
| | | | | | | | | | | | | | | | |
66.6
|
%
| | | |
75.3
|
%
| | | |
(11.6
|
)%
|
Other facilities
| | | | | | | | | | | | | | | |
|
89.0
|
%
| | |
|
90.0
|
%
| | |
|
(1.1
|
)%
|
| | | | | | | | | | | | | | | |
|
88.1
|
%
| | |
|
90.8
|
%
| | |
|
(3.0
|
)%
|
Annual contract rent per occupied square foot:
| | | | | | | | | | | | | | | | | | | | | | | | |
2016 acquisitions
| | | | | | | | | | | | | | | |
$
|
11.04
| | | |
$
|
-
| | | | |
-
| |
2015 acquisitions
| | | | | | | | | | | | | | | | |
13.84
| | | | |
13.38
| | | | |
3.4
|
%
|
2014 acquisitions
| | | | | | | | | | | | | | | | |
14.67
| | | | |
13.69
| | | | |
7.2
|
%
|
2013 acquisitions
| | | | | | | | | | | | | | | | |
15.72
| | | | |
14.76
| | | | |
6.5
|
%
|
Developed facilities
| | | | | | | | | | | | | | | | |
13.22
| | | | |
12.31
| | | | |
7.4
|
%
|
Other facilities
| | | | | | | | | | | | | | | |
|
18.00
|
| | |
|
16.88
|
| | |
|
6.6
|
%
|
| | | | | | | | | | | | | | | |
$
|
15.36
|
| | |
$
|
15.07
|
| | |
|
1.9
|
%
|
Number of facilities:
| | | | | | | | | | | | | | | | | | | | | | | | | |
2016 acquisitions
| | | | | | | | | | | | | | | | |
32
| | | | |
-
| | | | |
32
| |
2015 acquisitions
| | | | | | | | | | | | | | | | |
17
| | | | |
10
| | | | |
7
| |
2014 acquisitions
| | | | | | | | | | | | | | | | |
44
| | | | |
44
| | | | |
-
| |
2013 acquisitions
| | | | | | | | | | | | | | | | |
105
| | | | |
105
| | | | |
-
| |
Developed facilities
| | | | | | | | | | | | | | | | |
30
| | | | |
16
| | | | |
14
| |
Other facilities
| | | | | | | | | | | | | | | |
|
80
|
| | |
|
80
|
| | |
|
-
|
|
| | | | | | | | | | | | | | | |
|
308
|
| | |
|
255
|
| | |
|
53
|
|
Net rentable square feet (in thousands):
| | | | | | | | | | | | |
2016 acquisitions
| | | | | | | | | | | | | | | | |
2,329
| | | | |
-
| | | | |
2,329
| |
2015 acquisitions
| | | | | | | | | | | | | | | | |
1,285
| | | | |
738
| | | | |
547
| |
2014 acquisitions
| | | | | | | | | | | | | | | | |
3,457
| | | | |
3,457
| | | | |
-
| |
2013 acquisitions
| | | | | | | | | | | | | | | | |
6,906
| | | | |
6,906
| | | | |
-
| |
Developed facilities
| | | | | | | | | | | | | | | | |
3,225
| | | | |
1,463
| | | | |
1,762
| |
Other facilities
| | | | | | | | | | | | | | | |
|
6,699
|
| | |
|
6,614
|
| | |
|
85
|
|
| | | | | | | | | | | | | | | |
|
23,901
|
| | |
|
19,178
|
| | |
|
4,723
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(a)
|
|
|
See attached reconciliation of self-storage NOI to operating income.
|
| | |
|
Investing and Capital Markets Activities
During the three months ended September 30, 2016, we acquired eight
self-storage facilities (four located in Kentucky, and one each in
Georgia, Colorado, Michigan and Utah), with 0.6 million net rentable
square feet, for $73 million. During the nine months ended September 30,
2016, we acquired 32 self-storage facilities with 2.3 million net
rentable square feet for $271 million. Subsequent to September 30, 2016,
we acquired or were under contract to acquire 21 self-storage facilities
(11 in Oklahoma, four each in Tennessee and Ohio, and one each in
California and Texas), with 1.7 million net rentable square feet for
$149 million.
During the three months ended September 30, 2016, we completed one newly
developed facility and various expansion projects (0.2 million net
rentable square feet) costing $25 million. During the nine months ended
September 30, 2016, we completed ten newly developed facilities and
various expansion projects (1.4 million net rentable square feet)
costing an aggregate of $162 million. At September 30, 2016, we had
various facilities in development (4.2 million net rentable square feet)
estimated to cost $543 million and various expansion projects (1.1
million net rentable square feet) estimated to cost $145 million. The
remaining $427 million of development costs for these projects is
expected to be incurred primarily in the next 18 months.
On July 20, 2016, we issued our 4.95% Series D Preferred Shares for
gross proceeds of $325 million.
On October 14, 2016, we issued our 4.90% Series E Preferred Shares for
gross proceeds of $350 million.
Distributions Declared
On October 26, 2016, our Board of Trustees declared a regular common
quarterly dividend of $2.00 per common share, which is an increase of
$0.20 or 11% over the previous quarter's distribution. The Board also
declared dividends with respect to our various series of preferred
shares. All the dividends are payable on December 29, 2016 to
shareholders of record as of December 14, 2016.
Third Quarter Conference Call
A conference call is scheduled for October 27, 2016 at 11:00 a.m. (PDT)
to discuss the third quarter earnings results. The domestic dial-in
number is (866) 406-5408, and the international dial-in number is (973)
582-2770 (conference ID number for either domestic or international is
92505093). A simultaneous audio webcast may be accessed by using the
link at www.publicstorage.com
under “Company Info, Investor Relations, News and Events, Events
Calendar.” A replay of the conference call may be accessed through
November 11, 2016 by calling (800) 585-8367 (domestic) or (404) 537-3406
(international) or by using the link at www.publicstorage.com
under “Company Info, Investor Relations, News and Events, Events
Calendar.” All forms of replay utilize conference ID number 92505093.
About Public Storage
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT
that primarily acquires, develops, owns and operates self-storage
facilities. The Company’s headquarters are located in Glendale,
California. At September 30, 2016, we had interests in 2,319
self-storage facilities located in 38 states with approximately 152
million net rentable square feet in the United States and 218 storage
facilities located in seven Western European nations with approximately
12 million net rentable square feet operated under the “Shurgard” brand.
We also own a 42% common equity interest in PS Business Parks, Inc.
(NYSE:PSB) which owned and operated approximately 28 million rentable
square feet of commercial space at September 30, 2016.
Additional information about Public Storage is available on our website, www.publicstorage.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements in this press release, other than statements of historical
fact, are forward-looking statements which may be identified by the use
of the words “expects,” “believes,” “anticipates,” “should,” “estimates”
and similar expressions. These forward-looking statements involve known
and unknown risks and uncertainties, which may cause our actual results
and performance to be materially different from those expressed or
implied in the forward-looking statements. Factors and risks that may
impact future results and performance include, but are not limited to,
those described in Part 1, Item 1A, “Risk Factors” in our most recent
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the “SEC”) on February 29, 2016 and in our other filings
with the SEC and the following: general risks associated with the
ownership and operation of real estate, including changes in demand,
risk related to development of self-storage facilities, potential
liability for environmental contamination, natural disasters and adverse
changes in laws and regulations governing property tax, real estate and
zoning; risks associated with downturns in the national and local
economies in the markets in which we operate, including risks related to
current economic conditions and the economic health of our customers;
the impact of competition from new and existing self-storage and
commercial facilities and other storage alternatives; difficulties in
our ability to successfully evaluate, finance, integrate into our
existing operations and manage acquired and developed properties; risks
associated with international operations including, but not limited to,
unfavorable foreign currency rate fluctuations, changes in tax laws, and
local and global economic uncertainty that could adversely affect our
earnings and cash flows; risks related to our participation in joint
ventures; the impact of the regulatory environment as well as national,
state and local laws and regulations including, without limitation,
those governing environmental, taxes, our tenant reinsurance business
and labor, and risks related to the impact of new laws and regulations;
risks of increased tax expense associated either with a possible failure
by us to qualify as a REIT, or with challenges to the determination of
taxable income for our taxable REIT subsidiaries; changes in federal or
state tax laws related to the taxation of REITs and other corporations;
security breaches or a failure of our networks, systems or technology
could adversely impact our business, customer and employee
relationships; risks associated with the self-insurance of certain
business risks, including property and casualty insurance, employee
health insurance and workers compensation liabilities; difficulties in
raising capital at a reasonable cost; delays in the development process;
ongoing litigation and other legal and regulatory actions which may
divert management’s time and attention, require us to pay damages and
expenses or restrict the operation of our business; and economic
uncertainty due to the impact of war or terrorism. These forward-looking
statements speak only as of the date of this press release. All of our
forward-looking statements, including those in this press release, are
qualified in their entirety by this statement. We expressly disclaim any
obligation to update publicly or otherwise revise any forward-looking
statements, whether as a result of new information, new estimates, or
other factors, events or circumstances after the date of this press
release, except where expressly required by law. Given these risks and
uncertainties, you should not rely on any forward-looking statements in
this press release, or which management may make orally or in writing
from time to time, as predictions of future events nor guarantees of
future performance.
|
|
|
| | |
|
|
| | |
|
|
| | |
|
|
| | |
PUBLIC STORAGE SELECTED INCOME STATEMENT DATA
(Amounts in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
Three Months Ended
| | | |
Nine Months Ended
|
| | | |
September 30,
| | | |
September 30,
|
| | | |
2016
| | | |
2015
| | | |
2016
| | | |
2015
|
Revenues: | | | | | | | | | | | | | | | | | | | | |
Self-storage facilities
| | | |
$
|
623,157
| | | | |
$
|
580,976
| | | | |
$
|
1,792,130
| | | | |
$
|
1,662,641
| |
Ancillary operations
| | | |
|
39,991
|
| | | |
|
37,896
|
| | | |
|
116,992
|
| | | |
|
109,725
|
|
| | | |
|
663,148
|
| | | |
|
618,872
|
| | | |
|
1,909,122
|
| | | |
|
1,772,366
|
|
| | | | | | | | | | | | | | | | | | | |
|
Expenses: | | | | | | | | | | | | | | | | | | | | |
Self-storage cost of operations
| | | | |
165,905
| | | | | |
152,010
| | | | | |
483,455
| | | | | |
461,078
| |
Ancillary cost of operations
| | | | |
12,722
| | | | | |
12,676
| | | | | |
40,462
| | | | | |
36,715
| |
Depreciation and amortization
| | | | |
109,432
| | | | | |
106,082
| | | | | |
321,573
| | | | | |
319,701
| |
General and administrative
| | | |
|
22,140
|
| | | |
|
23,573
|
| | | |
|
63,508
|
| | | |
|
68,721
|
|
| | | |
|
310,199
|
| | | |
|
294,341
|
| | | |
|
908,998
|
| | | |
|
886,215
|
|
| | | | | | | | | | | | | | | | | | | |
|
Operating income
| | | | |
352,949
| | | | | |
324,531
| | | | | |
1,000,124
| | | | | |
886,151
| |
| | | | | | | | | | | | | | | | | | | |
|
Other income (expense): | | | | | | | | | | | | | | | | | | | | |
Interest and other income
| | | | |
3,750
| | | | | |
3,659
| | | | | |
11,614
| | | | | |
11,509
| |
Interest expense
| | | | |
(1,221
|
)
| | | | |
-
| | | | | |
(3,310
|
)
| | | | |
-
| |
Equity in earnings of unconsolidated real estate entities
| | | | |
17,237
| | | | | |
12,603
| | | | | |
41,628
| | | | | |
36,267
| |
Gain on sale of real estate investments
| | | | |
-
| | | | | |
343
| | | | | |
689
| | | | | |
18,503
| |
Foreign currency exchange loss
| | | |
|
(3,665
|
)
| | | |
|
-
|
| | | |
|
(5,987
|
)
| | | |
|
-
|
|
Net income
| | | | |
369,050
| | | | | |
341,136
| | | | | |
1,044,758
| | | | | |
952,430
| |
Allocation to noncontrolling interests
| | | |
|
(1,745
|
)
| | | |
|
(1,568
|
)
| | | |
|
(4,921
|
)
| | | |
|
(4,676
|
)
|
Net income allocable to Public Storage shareholders
| | | | |
367,305
| | | | | |
339,568
| | | | | |
1,039,837
| | | | | |
947,754
| |
Allocation of net income to:
| | | | | | | | | | | | | | | | | | | | |
Preferred shareholders – distributions
| | | | |
(57,178
|
)
| | | | |
(61,062
|
)
| | | | |
(178,666
|
)
| | | | |
(186,066
|
)
|
Preferred shareholders – redemptions
| | | | |
-
| | | | | |
(4,113
|
)
| | | | |
(26,873
|
)
| | | | |
(8,897
|
)
|
Restricted share units
| | | |
|
(1,170
|
)
| | | |
|
(885
|
)
| | | |
|
(3,231
|
)
| | | |
|
(2,744
|
)
|
Net income allocable to common shareholders
| | | |
$
|
308,957
|
| | | |
$
|
273,508
|
| | | |
$
|
831,067
|
| | | |
$
|
750,047
|
|
| | | | | | | | | | | | | | | | | | | |
|
Per common share: | | | | | | | | | | | | | | | | | | | | |
Net income per common share – Basic
| | | |
$
|
1.78
|
| | | |
$
|
1.58
|
| | | |
$
|
4.80
|
| | | |
$
|
4.34
|
|
Net income per common share – Diluted
| | | |
$
|
1.78
|
| | | |
$
|
1.58
|
| | | |
$
|
4.78
|
| | | |
$
|
4.32
|
|
Weighted average common shares – Basic
| | | |
|
173,108
|
| | | |
|
172,771
|
| | | |
|
173,057
|
| | | |
|
172,641
|
|
Weighted average common shares – Diluted
| | | |
|
173,848
|
| | | |
|
173,529
|
| | | |
|
173,899
|
| | | |
|
173,428
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
| | |
|
|
|
|
|
|
|
|
| | |
PUBLIC STORAGE SELECTED BALANCE SHEET
(Amounts in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | |
|
| | | |
September 30, 2016
| | | | | | | | | |
December 31, 2015
|
ASSETS | | | |
(Unaudited)
| | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Cash and cash equivalents
| | | |
$
|
57,213
| | | | | | | | | | |
$
|
104,285
| |
| | | | | | | | | | | | | | | |
|
Operating real estate facilities:
| | | | | | | | | | | | | | | | |
Land and buildings, at cost
| | | | |
13,686,241
| | | | | | | | | | | |
13,205,261
| |
Accumulated depreciation
| | | |
|
(5,166,881
|
)
| | | | | | | | | |
|
(4,866,738
|
)
|
| | | | |
8,519,360
| | | | | | | | | | | |
8,338,523
| |
Construction in process
| | | | |
261,372
| | | | | | | | | | | |
219,190
| |
Investments in unconsolidated real estate entities (a)
| | | | |
697,040
| | | | | | | | | | | |
809,308
| |
Goodwill and other intangible assets, net
| | | | |
212,548
| | | | | | | | | | | |
211,458
| |
Other assets
| | | |
|
118,236
|
| | | | | | | | | |
|
95,468
|
|
Total assets
| | | |
$
|
9,865,769
|
| | | | | | | | | |
$
|
9,778,232
|
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Senior unsecured notes
| | | |
$
|
383,438
| | | | | | | | | | |
$
|
263,940
| |
Mortgage notes
| | | | |
47,454
| | | | | | | | | | | |
55,076
| |
Accrued and other liabilities
| | | |
|
345,734
|
| | | | | | | | | |
|
261,578
|
|
Total liabilities
| | | | |
776,626
| | | | | | | | | | | |
580,594
| |
| | | | | | | | | | | | | | | |
|
Equity:
| | | | | | | | | | | | | | | | |
Public Storage shareholders’ equity:
| | | | | | | | | | | | | | | | |
Cumulative Preferred Shares, $0.01 par value, 100,000,000 shares
authorized, 160,700 shares issued (in series) and outstanding
(162,200 at December 31, 2015), at liquidation preference
| | | | |
4,017,500
| | | | | | | | | | | |
4,055,000
| |
Common Shares, $0.10 par value, 650,000,000 shares authorized,
173,137,424 shares issued and outstanding, (172,921,241 shares at
December 31, 2015)
| | | | |
17,314
| | | | | | | | | | | |
17,293
| |
Paid-in capital
| | | | |
5,602,834
| | | | | | | | | | | |
5,601,506
| |
Accumulated deficit
| | | | |
(494,325
|
)
| | | | | | | | | | |
(434,610
|
)
|
Accumulated other comprehensive loss
| | | |
|
(83,667
|
)
| | | | | | | | | |
|
(68,548
|
)
|
Total Public Storage shareholders’ equity
| | | | |
9,059,656
| | | | | | | | | | | |
9,170,641
| |
Noncontrolling interests
| | | |
|
29,487
|
| | | | | | | | | |
|
26,997
|
|
Total equity
| | | |
|
9,089,143
|
| | | | | | | | | |
|
9,197,638
|
|
Total liabilities and equity
| | | |
$
|
9,865,769
|
| | | | | | | | | |
$
|
9,778,232
|
|
| | | | | | | | | | | | | | | |
|
(a)
|
|
|
Decrease in investments in unconsolidated real estate entities is
due primarily to a $104 million cash distribution we received from
Shurgard Europe in the three months ended June 30, 2016.
|
| | |
|
| | |
|
|
|
|
| | |
|
|
| | |
|
|
| | |
|
|
| | |
PUBLIC STORAGE SELECTED FINANCIAL DATA
Computation of Funds from Operations and Funds Available for
Distribution
(Unaudited – amounts in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
Three Months Ended
| | | |
Nine Months Ended
|
| | | |
September 30,
| | | |
September 30,
|
| | | |
2016
| | | |
2015
| | | |
2016
| | | |
2015
|
Computation of FFO per Share: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Net income allocable to common shareholders
| | | |
$
|
308,957
| | | | |
$
|
273,508
| | | | |
$
|
831,067
| | | | |
$
|
750,047
| |
Eliminate items excluded from FFO:
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
| | | | |
109,432
| | | | | |
106,082
| | | | | |
321,573
| | | | | |
319,701
| |
Depreciation from unconsolidated real estate investments
| | | | |
18,328
| | | | | |
21,276
| | | | | |
57,319
| | | | | |
59,092
| |
Depreciation allocated to noncontrolling interests and restricted
share unitholders
| | | | |
(884
|
)
| | | | |
(877
|
)
| | | | |
(2,642
|
)
| | | | |
(2,632
|
)
|
Gains on sale of real estate investments, including our equity
share from investments and other
| | | |
|
(78
|
)
| | | |
|
(5,730
|
)
| | | |
|
(767
|
)
| | | |
|
(28,833
|
)
|
FFO allocable to common shares (a)
| | | |
$
|
435,755
|
| | | |
$
|
394,259
|
| | | |
$
|
1,206,550
|
| | | |
$
|
1,097,375
|
|
Diluted weighted average common shares
| | | |
|
173,848
|
| | | |
|
173,529
|
| | | |
|
173,899
|
| | | |
|
173,428
|
|
FFO per share (a)
| | | |
$
|
2.51
|
| | | |
$
|
2.27
|
| | | |
$
|
6.94
|
| | | |
$
|
6.33
|
|
| | | | | | | | | | | | | | | | | | | |
|
Reconciliation of Earnings per Share to
FFO per Share: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Earnings per share - diluted
| | | |
$
|
1.78
| | | | |
$
|
1.58
| | | | |
$
|
4.78
| | | | |
$
|
4.32
| |
Eliminate per share amounts excluded from FFO:
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization, including amounts from investments
and excluding amounts allocated to noncontrolling interests and
restricted share unitholders
| | | | |
0.73
| | | | | |
0.73
| | | | | |
2.16
| | | | | |
2.17
| |
Gains on sale of real estate investments, including our equity
share from investments and other
| | | |
|
-
|
| | | |
|
(0.04
|
)
| | | |
|
-
|
| | | |
|
(0.16
|
)
|
FFO per share (a)
| | | |
$
|
2.51
|
| | | |
$
|
2.27
|
| | | |
$
|
6.94
|
| | | |
$
|
6.33
|
|
| | | | | | | | | | | | | | | | | | | |
|
Computation of Funds Available for
Distribution ("FAD"): | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
FFO allocable to common shares
| | | |
$
|
435,755
| | | | |
$
|
394,259
| | | | |
$
|
1,206,550
| | | | |
$
|
1,097,375
| |
Eliminate effect of items included in FFO but not FAD:
| | | | | | | | | | | | | | | | | | | | |
Non-cash share-based compensation expense
| | | | |
11,416
| | | | | |
9,911
| | | | | |
27,899
| | | | | |
24,403
| |
Foreign currency exchange loss, net, including our equity share
from investments
| | | | |
3,665
| | | | | |
-
| | | | | |
5,046
| | | | | |
-
| |
Application of EITF D-42, including our equity share from
investments
| | | | |
-
| | | | | |
5,160
| | | | | |
26,873
| | | | | |
9,944
| |
Less: Capital expenditures to maintain real estate facilities
| | | |
|
(22,834
|
)
| | | |
|
(20,414
|
)
| | | |
|
(67,779
|
)
| | | |
|
(52,875
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
FAD (a)
| | | |
$
|
428,002
|
| | | |
$
|
388,916
|
| | | |
$
|
1,198,589
|
| | | |
$
|
1,078,847
|
|
Distributions paid to common shareholders
| | | |
$
|
311,374
|
| | | |
$
|
293,634
|
| | | |
$
|
916,698
|
| | | |
$
|
828,410
|
|
Distribution payout ratio
| | | |
|
72.8
|
%
| | | |
|
75.5
|
%
| | | |
|
76.5
|
%
| | | |
|
76.8
|
%
|
Distributions per common share
| | | |
$
|
1.80
|
| | | |
$
|
1.70
|
| | | |
$
|
5.30
|
| | | |
$
|
4.80
|
|
| | | | | | | | | | | | | | | | | | | |
|
(a)
|
|
|
FFO and FFO per share are non-GAAP measures defined by the National
Association of Real Estate Investment Trusts and, along with the
non-GAAP measure FAD, are considered helpful measures of REIT
performance by REITs and many REIT analysts. FFO represents net
income before real estate depreciation, gains or losses and
impairment charges, which are excluded because they are based upon
historical real estate costs and assume that building values
diminish ratably over time, while we believe that real estate values
fluctuate due to market conditions. FAD represents FFO adjusted to
exclude certain non-cash charges and to deduct capital expenditures.
We utilize FAD in evaluating our ongoing cash flow available for
investment, debt repayment, and common distributions. We believe
investors and analysts utilize FAD in a similar manner. FFO and FFO
per share are not a substitute for net income or earnings per share.
FFO and FAD are not substitutes for GAAP net cash flow in evaluating
our liquidity or ability to pay dividends, because they exclude
investing and financing activities presented on our statements of
cash flows. In addition, other REITs may compute these measures
differently, so comparisons among REITs may not be helpful.
|
| | |
|
| | |
|
|
|
|
| | |
|
|
| | |
|
|
| | |
|
|
| | |
PUBLIC STORAGE SELECTED FINANCIAL DATA
Reconciliation of Self-Storage Net Operating Income to Operating Income
(Unaudited – amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
Three Months Ended
| | | |
Nine Months Ended
|
| | | |
September 30,
| | | |
September 30,
|
| | | |
2016
| | | |
2015
| | | |
2016
| | | |
2015
|
| | | | | | | | | | | | | | | | | | | |
|
Self-storage revenues for:
| | | | | | | | | | | | | | | | | | | | |
Same Store Facilities
| | | |
$
|
542,272
| | | | |
$
|
515,713
| | | | |
$
|
1,567,323
| | | | |
$
|
1,480,856
| |
Non Same Store Facilities
| | | |
|
80,885
|
| | | |
|
65,263
|
| | | |
|
224,807
|
| | | |
|
181,785
|
|
Self-storage revenues
| | | | |
623,157
| | | | | |
580,976
| | | | | |
1,792,130
| | | | | |
1,662,641
| |
| | | | | | | | | | | | | | | | | | | |
|
Self-storage cost of operations for:
| | | | | | | | | | | | | | | | | | | | |
Same Store Facilities
| | | | |
141,980
| | | | | |
133,486
| | | | | |
417,334
| | | | | |
407,157
| |
Non Same Store Facilities
| | | |
|
23,925
|
| | | |
|
18,524
|
| | | |
|
66,121
|
| | | |
|
53,921
|
|
Self-storage cost of operations
| | | | |
165,905
| | | | | |
152,010
| | | | | |
483,455
| | | | | |
461,078
| |
| | | | | | | | | | | | | | | | | | | |
|
Self-storage net operating income for:
| | | | | | | | | | | | | | | | | | | | |
Same Store Facilities
| | | | |
400,292
| | | | | |
382,227
| | | | | |
1,149,989
| | | | | |
1,073,699
| |
Non Same Store Facilities
| | | |
|
56,960
|
| | | |
|
46,739
|
| | | |
|
158,686
|
| | | |
|
127,864
|
|
Self-storage net operating income (a)
| | | | |
457,252
| | | | | |
428,966
| | | | | |
1,308,675
| | | | | |
1,201,563
| |
Ancillary operating revenues
| | | | |
39,991
| | | | | |
37,896
| | | | | |
116,992
| | | | | |
109,725
| |
Ancillary cost of operations
| | | | |
(12,722
|
)
| | | | |
(12,676
|
)
| | | | |
(40,462
|
)
| | | | |
(36,715
|
)
|
Depreciation and amortization
| | | | |
(109,432
|
)
| | | | |
(106,082
|
)
| | | | |
(321,573
|
)
| | | | |
(319,701
|
)
|
General and administrative expense
| | | |
|
(22,140
|
)
| | | |
|
(23,573
|
)
| | | |
|
(63,508
|
)
| | | |
|
(68,721
|
)
|
Operating income on our income statement
| | | |
$
|
352,949
|
| | | |
$
|
324,531
|
| | | |
$
|
1,000,124
|
| | | |
$
|
886,151
|
|
| | | | | | | | | | | | | | | | | | | |
|
(a)
|
|
|
Net operating income or “NOI” is a non-GAAP financial measure that
excludes the impact of depreciation and amortization expense, which
is based upon historical real estate costs and assumes that building
values diminish ratably over time, while we believe that real estate
values fluctuate due to market conditions. We utilize NOI in
determining current property values, evaluating property
performance, and in evaluating operating trends. We believe that
investors and analysts utilize NOI in a similar manner. NOI is not a
substitute for net income, net operating cash flow, or other related
GAAP financial measures, in evaluating our operating results. This
table reconciles from NOI for our self-storage facilities to the
operating income presented on our income statement.
|
| | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026006971/en/
Contacts:
Public Storage
Clemente Teng
(818) 244-8080, Ext. 1141
Source: Public Storage
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