Company: PSA-PH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393311-25-000069
Chunk: 17

Company: Public Storage
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 17
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.1%Direct net operating income (b)720,573 720,231 —%Indirect cost of operations (a):Supervisory payroll(11,105)(10,772)3.1%Centralized management costs(15,358)(14,905)3.0%Share-based compensation(2,577)(2,741)(6.0)%Net operating income691,533 691,813 —%Depreciation and amortization expense(177,329)(178,002)(0.4)%Net income$514,204 $513,811 0.1%Gross margin (before indirect costs, depreciation and amortization expense)77.1%77.1%—%Gross margin (before depreciation and amortization expense)74.0%74.1%(0.1)%Weighted average for the period:Square foot occupancy 91.5%92.1%(0.6)%Realized annual rental income per (c):Occupied square foot$22.48$22.340.6%Available square foot$20.57$20.57—%At March 31:Square foot occupancy91.5%91.8%(0.3)%Annual contract rent per occupied square foot (d)$22.58$22.410.8%

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(a)Revenues and cost of operations do not include tenant reinsurance and merchandise sale revenues and expenses generated at the facilities. See “Ancillary Operations” below for more information.

(b)Direct net operating income (“Direct NOI”), a subtotal within NOI, is a non-GAAP financial measure that excludes the impact of supervisory payroll, centralized management costs, and share-based compensation in addition to depreciation and amortization expense. We utilize direct net operating income in evaluating property performance and in evaluating property operating trends as compared to our competitors. 

(c)Realized annual rent per occupied square foot is computed by dividing 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 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