Public Storage Reports Results for the Fourth Quarter and Year Ended December 31, 2013
Operating Results for the Three Months Ended December 31, 2013
For the three months ended December 31, 2013, net income allocable to our common shareholders was $243.7 million or $1.41 per diluted common share, compared to $209.5 million or $1.22 per diluted common share for the same period in 2012, representing an increase of $34.2 million or $0.19 per diluted common share. This increase is due primarily to (i) a $38.1 million increase in self-storage net operating income and (ii) a $12.0 million reduction in income allocated to preferred shareholders due to redemptions, offset by (iii) a $16.3 million increase in depreciation and amortization associated with acquired real estate facilities.
Our self-storage net operating income increased $38.1 million in the three months ended December 31, 2013 as compared to the same period in 2012, including $24.7 million for our Same Store Facilities and $13.4 million for our non-Same Store Facilities. Revenues for the Same Store Facilities increased 5.4% or $22.0 million in the quarter ended December 31, 2013 as compared to the same period in 2012, due to higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the Same Store Facilities decreased by 2.6% or $2.7 million in the quarter ended December 31, 2013 as compared to the same period in 2012, due primarily to lower advertising and selling costs offset partially by higher snow removal and property tax expense. The increase in net operating income for the non-Same Store Facilities is due primarily to the impact of the acquisition of 145 self-storage facilities from third parties since January 2012.
Operating Results for the Year Ended December 31, 2013
For the year ended December 31, 2013, net income allocable to our common shareholders was $844.7 million or $4.89 per diluted common share, compared to $669.7 million or $3.90 per diluted common share for the same period in 2012, representing an increase of $175.0 million or $0.99 per diluted common share. This increase is due primarily to (i) a $124.6 million increase in self-storage net operating income, (ii) a $68.9 million reduction in income allocated to preferred shareholders due to redemptions, including our equity share of PSB, (iii) an $8.2 million increase from foreign currency exchange gains, offset partially by (iv) a $29.6 million increase in depreciation and amortization associated with acquired real estate facilities.
Our self-storage net operating income increased $124.6 million in the year ended December 31, 2013 as compared to the same period in 2012, including $93.0 million for our Same Store Facilities and $31.6 million for our non-Same Store Facilities. Revenues for the Same Store Facilities increased 5.3% or $86.5 million in the year ended December 31, 2013 as compared to the same period in 2012, due to higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the Same Store Facilities decreased by 1.3% or $6.5 million in the year ended December 31, 2013 as compared to the same period in 2012, due primarily to lower repairs and maintenance and advertising and selling costs, offset partially by higher snow removal and property tax expense. The increase in net operating income for the non-Same Store Facilities is due primarily to the impact of the acquisition of 145 self-storage facilities from third parties since January 2012.
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About Public Storage
Public Storage built its first self-storage facility in 1972. Today it operates over 2,200 unique and diverse company-owned locations in the United States and Europe, totaling more than 142 million net rentable square feet of real estate. Its PS Business Parks interest adds another 28 million(approx.) rentable square feet of commercial and industrial space. Based on number of tenants, Public Storage is among the largest landlords in the world.
Given its long and successful history, its presence in major markets, its customer focus and its leadership position in the self-storage industry, Public Storage is a respected and trusted operator of self-storage facilities. Public Storage is a member of the S&P 500 and FT Global 500. Common and preferred stock for Public Storage trade on the New York Stock Exchange. For more information, please visit: https://www.publicstorage.com/(via BusinessWire)
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