Maryland
|
001-33519
|
95-3551121
|
(State or Other Jurisdiction of
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
Incorporation)
|
701 Western Avenue, Glendale, California
|
91201-2349
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
o
|
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
PUBLIC STORAGE
|
|
By:
|
/s/ John Reyes
|
John Reyes
|
|
Chief Financial Officer
|
Public Storage
|
701 Western Avenue
|
Glendale, CA 91201-2349
|
www.publicstorage.com
|
For Release:
|
Immediately
|
Date:
|
October 31, 2013
|
Contact:
|
Clemente Teng
|
(818) 244-8080, Ext. 1141
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2013
|
2012
|
Percentage
Change
|
2013
|
2012
|
Percentage
Change
|
|||||||||||||||||||
FFO per share
|
$ | 2.00 | $ | 1.73 | 15.6 | % | $ | 5.40 | $ | 4.46 | 21.1 | % | ||||||||||||
Eliminate the per share impact of items excluded from Core FFO:
|
||||||||||||||||||||||||
Foreign currency exchange (gain) loss
|
(0.09 | ) | (0.05 | ) | (0.05 | ) | 0.01 | |||||||||||||||||
Application of EITF D-42
|
- | 0.08 | - | 0.33 | ||||||||||||||||||||
Other items
|
0.01 | - | 0.01 | 0.02 | ||||||||||||||||||||
Core FFO per share
|
$ | 1.92 | $ | 1.76 | 9.1 | % | $ | 5.36 | $ | 4.82 | 11.2 | % |
Selected Operating Data for the Same Store Facilities (1,949 facilities) (unaudited):
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2013
|
2012
|
Percentage
Change
|
2013
|
2012
|
Percentage
Change
|
|||||||||||||||||||||
(Dollar amounts in thousands, except for weighted average data)
|
||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||
Rental income
|
$ | 419,022 | $ | 396,879 | 5.6 | % | $ | 1,207,932 | $ | 1,145,517 | 5.4 | % | ||||||||||||||
Late charges and administrative fees
|
21,989 | 21,206 | 3.7 | % | 62,829 | 60,792 | 3.4 | % | ||||||||||||||||||
Total revenues (a)
|
441,011 | 418,085 | 5.5 | % | 1,270,761 | 1,206,309 | 5.3 | % | ||||||||||||||||||
Cost of operations:
|
||||||||||||||||||||||||||
Property taxes
|
43,652 | 40,703 | 7.2 | % | 132,441 | 125,896 | 5.2 | % | ||||||||||||||||||
On-site property manager payroll
|
24,567 | 24,797 | (0.9 | )% | 75,791 | 75,276 | 0.7 | % | ||||||||||||||||||
Supervisory payroll (b)
|
8,303 | 8,229 | 0.9 | % | 26,088 | 25,766 | 1.2 | % | ||||||||||||||||||
Repairs and maintenance
|
9,689 | 8,500 | 14.0 | % | 29,599 | 31,178 | (5.1 | )% | ||||||||||||||||||
Utilities
|
10,045 | 10,194 | (1.5 | )% | 27,862 | 27,942 | (0.3 | )% | ||||||||||||||||||
Advertising and selling expense
|
8,385 | 10,216 | (17.9 | )% | 22,250 | 31,333 | (29.0 | )% | ||||||||||||||||||
Other direct property costs (c)
|
12,259 | 12,775 | (4.0 | )% | 37,299 | 37,570 | (0.7 | )% | ||||||||||||||||||
Allocated overhead (d)
|
7,898 | 7,573 | 4.3 | % | 27,413 | 27,563 | (0.5 | )% | ||||||||||||||||||
Total cost of operations (a)
|
124,798 | 122,987 | 1.5 | % | 378,743 | 382,524 | (1.0 | )% | ||||||||||||||||||
Net operating income (e)
|
$ | 316,213 | $ | 295,098 | 7.2 | % | $ | 892,018 | $ | 823,785 | 8.3 | % | ||||||||||||||
Gross margin
|
71.7 | % | 70.6 | % | 1.6 | % | 70.2 | % | 68.3 | % | 2.8 | % | ||||||||||||||
Weighted average for the period:
|
||||||||||||||||||||||||||
Square foot occupancy (f)
|
94.4 | % | 93.0 | % | 1.5 | % | 93.4 | % | 91.9 | % | 1.6 | % | ||||||||||||||
Realized annual rental income per:
|
||||||||||||||||||||||||||
Occupied square foot (g)
|
$ | 14.46 | $ | 13.90 | 4.0 | % | $ | 14.04 | $ | 13.53 | 3.8 | % | ||||||||||||||
Available square foot (“REVPAF”) (g)
|
$ | 13.65 | $ | 12.93 | 5.6 | % | $ | 13.11 | $ | 12.44 | 5.4 | % | ||||||||||||||
Weighted average at September 30:
|
||||||||||||||||||||||||||
Square foot occupancy
|
93.6 | % | 92.5 | % | 1.2 | % | ||||||||||||||||||||
Annual contract rent per occupied square foot (h)
|
$ | 15.20 | $ | 14.64 | 3.8 | % |
(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)
|
Supervisory payroll expense represents compensation paid to management personnel who directly and indirectly supervise on-site property managers.
|
(c)
|
Other direct property costs include administrative expenses that are solely attributable to 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.
|
(d)
|
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, whose compensation is allocated to general and administrative expense).
|
(e)
|
See attached reconciliation of Same Store NOI to operating income.
|
(f)
|
Square foot occupancies represent weighted average occupancy levels over the entire period.
|
(g)
|
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.
|
(h)
|
Contract rent represents the applicable contractual monthly rent charged to our tenants, excluding the impact of promotional discounts, late charges, and administrative fees.
|
Three Months Ended
|
||||||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
Full Year
|
||||||||||||||||
Total revenues (in 000’s):
|
||||||||||||||||||||
2013
|
$ | 409,604 | $ | 420,146 | $ | 441,011 | ||||||||||||||
2012
|
$ | 388,499 | $ | 399,725 | $ | 418,085 | $ | 410,489 | $ | 1,616,798 | ||||||||||
Total cost of operations (in 000’s):
|
||||||||||||||||||||
2013
|
$ | 131,358 | $ | 122,587 | $ | 124,798 | ||||||||||||||
2012
|
$ | 134,411 | $ | 125,126 | $ | 122,987 | $ | 102,936 | $ | 485,460 | ||||||||||
Property taxes (in 000’s):
|
||||||||||||||||||||
2013
|
$ | 44,758 | $ | 44,031 | $ | 43,652 | ||||||||||||||
2012
|
$ | 43,142 | $ | 42,051 | $ | 40,703 | $ | 26,295 | $ | 152,191 | ||||||||||
Repairs and maintenance (in 000’s):
|
||||||||||||||||||||
2013
|
$ | 10,824 | $ | 9,086 | $ | 9,689 | ||||||||||||||
2012
|
$ | 12,235 | $ | 10,443 | $ | 8,500 | $ | 8,901 | $ | 40,079 | ||||||||||
Advertising and selling expenses (in 000’s):
|
||||||||||||||||||||
2013
|
$ | 7,453 | $ | 6,412 | $ | 8,385 | ||||||||||||||
2012
|
$ | 10,531 | $ | 10,586 | $ | 10,216 | $ | 7,538 | $ | 38,871 | ||||||||||
REVPAF:
|
||||||||||||||||||||
2013
|
$ | 12.67 | $ | 13.02 | $ | 13.65 | ||||||||||||||
2012
|
$ | 12.01 | $ | 12.37 | $ | 12.93 | $ | 12.73 | $ | 12.51 | ||||||||||
Weighted average realized annual rent per occupied square foot:
|
||||||||||||||||||||
2013
|
$ | 13.79 | $ | 13.85 | $ | 14.46 | ||||||||||||||
2012
|
$ | 13.30 | $ | 13.39 | $ | 13.90 | $ | 13.83 | $ | 13.61 | ||||||||||
Weighted average occupancy levels:
|
||||||||||||||||||||
2013
|
91.9 | % | 94.0 | % | 94.4 | % | ||||||||||||||
2012
|
90.3 | % | 92.4 | % | 93.0 | % | 92.1 | % | 91.9 | % | ||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Operating Revenues:
|
||||||||||||||||
Self-storage facilities
|
$ | 477,978 | $ | 445,169 | $ | 1,369,219 | $ | 1,279,788 | ||||||||
Ancillary operations
|
33,979 | 32,013 | 99,016 | 93,022 | ||||||||||||
511,957 | 477,182 | 1,468,235 | 1,372,810 | |||||||||||||
Operating Expenses:
|
||||||||||||||||
Self-storage cost of operations
|
136,751 | 131,618 | 409,881 | 406,913 | ||||||||||||
Ancillary cost of operations
|
11,052 | 9,857 | 30,882 | 29,156 | ||||||||||||
Depreciation and amortization
|
96,537 | 89,897 | 278,475 | 265,195 | ||||||||||||
General and administrative
|
17,650 | 15,298 | 49,988 | 44,117 | ||||||||||||
261,990 | 246,670 | 769,226 | 745,381 | |||||||||||||
Operating income
|
249,967 | 230,512 | 699,009 | 627,429 | ||||||||||||
Other income (expense):
|
||||||||||||||||
Interest and other income
|
5,608 | 5,444 | 16,705 | 16,639 | ||||||||||||
Interest expense
|
(478 | ) | (4,926 | ) | (4,622 | ) | (15,327 | ) | ||||||||
Equity in earnings of unconsolidated
real estate entities
|
14,269 | 12,642 | 39,013 | 30,353 | ||||||||||||
Gain on disposition of real estate investments
|
168 | 193 | 168 | 1,456 | ||||||||||||
Foreign currency exchange gain (loss)
|
16,094 | 9,019 | 9,281 | (2,481 | ) | |||||||||||
Income from continuing operations
|
285,628 | 252,884 | 759,554 | 658,069 | ||||||||||||
Discontinued operations
|
- | 11,935 | - | 12,403 | ||||||||||||
Net income
|
285,628 | 264,819 | 759,554 | 670,472 | ||||||||||||
Allocation to noncontrolling interests
|
(1,430 | ) | (927 | ) | (3,670 | ) | (2,585 | ) | ||||||||
Net income allocable to Public Storage shareholders
|
284,198 | 263,892 | 755,884 | 667,887 | ||||||||||||
Allocation of net income to:
|
||||||||||||||||
Preferred shareholders - distributions
|
(51,907 | ) | (49,267 | ) | (152,404 | ) | (156,272 | ) | ||||||||
Preferred shareholders - redemptions
|
- | (11,350 | ) | - | (49,677 | ) | ||||||||||
Restricted share units
|
(930 | ) | (810 | ) | (2,498 | ) | (1,787 | ) | ||||||||
Net income allocable to common shareholders
|
$ | 231,361 | $ | 202,465 | $ | 600,982 | $ | 460,151 | ||||||||
Per common share:
|
||||||||||||||||
Net income per common share – Basic
|
$ | 1.35 | $ | 1.19 | $ | 3.50 | $ | 2.70 | ||||||||
Net income per common share – Diluted
|
$ | 1.34 | $ | 1.18 | $ | 3.48 | $ | 2.68 | ||||||||
Weighted average common shares - Basic
|
171,721 | 170,576 | 171,597 | 170,460 | ||||||||||||
Weighted average common shares - Diluted
|
172,793 | 171,700 | 172,651 | 171,558 |
September 30, 2013
|
December 31, 2012
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Cash and cash equivalents
|
$ | 56,965 | $ | 17,239 | ||||
Operating real estate facilities:
|
||||||||
Land and buildings, at cost
|
11,533,334 | 11,033,819 | ||||||
Accumulated depreciation
|
(4,004,681 | ) | (3,738,130 | ) | ||||
7,528,653 | 7,295,689 | |||||||
Construction in process
|
46,039 | 36,243 | ||||||
Investment in unconsolidated real estate entities
|
766,489 | 735,323 | ||||||
Goodwill and other intangible assets, net
|
217,023 | 209,374 | ||||||
Loan receivable from unconsolidated real estate entity
|
420,441 | 410,995 | ||||||
Other assets
|
114,330 | 88,540 | ||||||
Total assets
|
$ | 9,149,940 | $ | 8,793,403 | ||||
LIABILITIES AND EQUITY
|
||||||||
Borrowings on bank credit facility
|
$ | - | $ | 133,000 | ||||
Notes payable
|
100,118 | 335,828 | ||||||
Accrued and other liabilities
|
243,033 | 201,711 | ||||||
Total liabilities
|
343,151 | 670,539 | ||||||
Equity:
|
||||||||
Public Storage shareholders’ equity:
|
||||||||
Cumulative Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 142,500 shares issued (in series) and outstanding (113,500 at December 31, 2012), at liquidation preference
|
3,562,500 | 2,837,500 | ||||||
Common Shares, $0.10 par value, 650,000,000 shares authorized, 171,760,994 shares issued and outstanding (171,388,286 at December 31, 2012)
|
17,176 | 17,139 | ||||||
Paid-in capital
|
5,525,639 | 5,519,596 | ||||||
Accumulated deficit
|
(321,890 | ) | (279,474 | ) | ||||
Accumulated other comprehensive loss
|
(4,481 | ) | (1,005 | ) | ||||
Total Public Storage shareholders’ equity
|
8,778,944 | 8,093,756 | ||||||
Permanent noncontrolling interests
|
27,845 | 29,108 | ||||||
Total equity
|
8,806,789 | 8,122,864 | ||||||
Total liabilities and equity
|
$ | 9,149,940 | $ | 8,793,403 |
Selected Operating Data for the Shurgard Europe Same Store Pool (163 facilities) (unaudited):
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
2013
|
2012
|
Percentage
Change
|
2013
|
2012
|
Percentage
Change
|
|||||||||||||||||||
(Dollar amounts in thousands, except weighted average data,
utilizing constant exchange rates (a))
|
||||||||||||||||||||||||
Rental income, late charges and administrative fees
|
$ | 47,998 | $ | 49,199 | (2.4 | )% | $ | 141,340 | $ | 144,925 | (2.5 | )% | ||||||||||||
Cost of operations
|
19,732 | 19,913 | (0.9 | )% | 60,523 | 60,941 | (0.7 | )% | ||||||||||||||||
Net operating income
|
$ | 28,266 | $ | 29,286 | (3.5 | )% | $ | 80,817 | $ | 83,984 | (3.8 | )% | ||||||||||||
Gross margin
|
58.9 | % | 59.5 | % | (1.0 | )% | 57.2 | % | 57.9 | % | (1.2 | )% | ||||||||||||
Weighted average for the period:
|
||||||||||||||||||||||||
Square foot occupancy (b)
|
81.5 | % | 83.6 | % | (2.5 | )% | 80.7 | % | 83.5 | % | (3.4 | )% | ||||||||||||
Realized annual rent, prior to late charges and administrative fees, per:
|
||||||||||||||||||||||||
Occupied square foot (c)
|
$ | 26.70 | $ | 26.75 | (0.2 | )% | $ | 26.50 | $ | 26.28 | 0.8 | % | ||||||||||||
Available square foot (“REVPAF”) (c)
|
$ | 21.76 | $ | 22.37 | (2.7 | )% | $ | 21.39 | $ | 21.94 | (2.5 | )% | ||||||||||||
Average Euro to U.S. Dollar exchange rates: (a)
|
||||||||||||||||||||||||
Constant exchange rates used herein
|
1.324 | 1.324 | - | 1.317 | 1.317 | - | ||||||||||||||||||
Actual historical exchange rates
|
1.324 | 1.251 | 5.8 | % | 1.317 | 1.282 | 2.7 | % |
(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 the three and nine months ended September 30, 2012 have been restated using the actual exchange rates for the three and nine months ended September 30, 2013.
|
(b)
|
Square foot occupancies represent weighted average occupancy levels over the entire period.
|
(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.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Computation of FFO per Share:
|
||||||||||||||||
Net income
|
$ | 285,628 | $ | 264,819 | $ | 759,554 | $ | 670,472 | ||||||||
Adjust for amounts not included in FFO:
|
||||||||||||||||
Depreciation and amortization, including amounts in discontinued operations
|
96,537 | 89,991 | 278,475 | 265,517 | ||||||||||||
Depreciation from unconsolidated real estate investments
|
18,708 | 18,391 | 55,769 | 56,955 | ||||||||||||
Gains on sale of real estate investments
|
(168 | ) | (13,010 | ) | (168 | ) | (14,273 | ) | ||||||||
FFO allocable to equity holders
|
400,705 | 360,191 | 1,093,630 | 978,671 | ||||||||||||
Less allocation of FFO to:
|
||||||||||||||||
Noncontrolling equity interests
|
(1,938 | ) | (1,730 | ) | (5,339 | ) | (4,950 | ) | ||||||||
Preferred shareholders - distributions
|
(51,907 | ) | (49,267 | ) | (152,404 | ) | (156,272 | ) | ||||||||
Preferred shareholders - redemptions
|
- | (11,350 | ) | - | (49,677 | ) | ||||||||||
Restricted share unitholders
|
(1,401 | ) | (1,198 | ) | (3,802 | ) | (2,990 | ) | ||||||||
FFO allocable to common shares (a)
|
$ | 345,459 | $ | 296,646 | $ | 932,085 | $ | 764,782 | ||||||||
Diluted weighted average common shares
|
172,793 | 171,700 | 172,651 | 171,558 | ||||||||||||
FFO per share (a)
|
$ | 2.00 | $ | 1.73 | $ | 5.40 | $ | 4.46 | ||||||||
Computation of Funds Available for Distribution (“FAD”):
|
||||||||||||||||
FFO allocable to common shares
|
$ | 345,459 | $ | 296,646 | $ | 932,085 | $ | 764,782 | ||||||||
Eliminate effect of items included in FFO but not FAD:
|
||||||||||||||||
Non-cash share-based compensation expense
|
8,592 | 7,111 | 21,491 | 18,394 | ||||||||||||
Foreign currency exchange (gain) loss
|
(16,094 | ) | (9,019 | ) | (9,281 | ) | 2,481 | |||||||||
Application of EITF D-42
|
- | 12,941 | - | 56,856 | ||||||||||||
Less: Capital expenditures to maintain real estate facilities
|
(23,119 | ) | (18,344 | ) | (55,883 | ) | (58,642 | ) | ||||||||
FAD
|
$ | 314,838 | $ | 289,335 | $ | 888,412 | $ | 783,871 | ||||||||
Distributions paid to common shareholders
|
$ | 214,685 | $ | 187,629 | $ | 643,699 | $ | 562,625 | ||||||||
Distribution payout ratio
|
68.2 | % | 64.8 | % | 72.5 | % | 71.8 | % | ||||||||
Distributions per common share
|
$ | 1.25 | $ | 1.10 | $ | 3.75 | $ | 3.30 |
(a)
|
FFO is a non-GAAP 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. We present FFO and FFO per share because we consider FFO to be an important measure of the performance of real estate companies, as do many analysts in evaluating our Company. We believe that FFO is a helpful measure of a REIT’s performance since FFO excludes depreciation, which is included in computing net income and assumes the value of real estate diminishes predictably over time. We believe that real estate values fluctuate due to market conditions and in response to inflation. FFO computations do not consider scheduled principal payments on debt, capital improvements, distributions and other obligations of the Company. FFO and FFO per share are not a substitute for our cash flow or net income per share as a measure of our liquidity or operating performance or our ability to pay dividends. Because other REITs may not compute FFO in the same manner, FFO may not be comparable among REITs.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Revenues for:
|
||||||||||||||||
Same Store Facilities
|
$ | 441,011 | $ | 418,085 | $ | 1,270,761 | $ | 1,206,309 | ||||||||
Non Same Store Facilities (a)
|
36,967 | 27,084 | 98,458 | 73,479 | ||||||||||||
Self-storage revenues
|
477,978 | 445,169 | 1,369,219 | 1,279,788 | ||||||||||||
Self-storage cost of operations for:
|
||||||||||||||||
Same Store Facilities
|
124,798 | 122,987 | 378,743 | 382,524 | ||||||||||||
Non Same Store Facilities (a)
|
11,953 | 8,631 | 31,138 | 24,389 | ||||||||||||
Self-storage cost of operations
|
136,751 | 131,618 | 409,881 | 406,913 | ||||||||||||
Net operating income for:
|
||||||||||||||||
Same Store Facilities
|
316,213 | 295,098 | 892,018 | 823,785 | ||||||||||||
Non Same Store Facilities (a)
|
25,014 | 18,453 | 67,320 | 49,090 | ||||||||||||
Self-storage net operating income (b)
|
341,227 | 313,551 | 959,338 | 872,875 | ||||||||||||
Ancillary revenues
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33,979 | 32,013 | 99,016 | 93,022 | ||||||||||||
Ancillary cost of operations
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(11,052 | ) | (9,857 | ) | (30,882 | ) | (29,156 | ) | ||||||||
Depreciation and amortization
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(96,537 | ) | (89,897 | ) | (278,475 | ) | (265,195 | ) | ||||||||
General and administrative expense
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(17,650 | ) | (15,298 | ) | (49,988 | ) | (44,117 | ) | ||||||||
Operating income on our income statement
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$ | 249,967 | $ | 230,512 | $ | 699,009 | $ | 627,429 |
(a)
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We have 148 additional self-storage facilities that are not Same Store Facilities. In the nine months ended September 30, 2013, we acquired 32 self-storage facilities for an aggregate of approximately $392 million in cash. Included in the table above for the three and nine months ended September 30, 2013 are revenues totaling $3,926,000 and $4,303,000, respectively, and cost of operations totaling $1,704,000 and $1,864,000, respectively, for these 32 self-storage facilities.
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(b)
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Net operating income or “NOI” 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 our operating results. This table reconciles from NOI for our self-storage facilities to the operating income presented on our income statement.
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