UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
x (ANNUAL ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OF 1934
For the fiscal year ended December 31, 2009
December 31, 2006
OR
o (TRANSITION TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
to
Commission file number 001-32324
U-STORE-IT TRUST
(Exact Name of Registrant as Specified in Its Charter)
Maryland | 20-1024732 | |
(State or Other Jurisdiction of |
| (IRS Employer |
Incorporation or Organization) |
| Identification No.) |
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Suite 3000 |
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| 19087 | |
(Address of Principal Executive | Offices) |
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Registrant’s telephone number, including area code (440) 234-0700 (610) 293-5700
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Name of each exchange on which registered | ||
Common Shares, $0.01 par value per share |
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New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YESoNO xNOo
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YESo NO x
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. YES x NO o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a non-accelerated filer.smaller reporting company. See definitiondefinitions of “large accelerated filer,” “accelerated filer,” and large accelerated filer”“smaller reporting company” in Rule 12b-2 of the Exchange Act.Act:
Large Accelerated Filer | Accelerated Filer x | |
Non-Accelerated Filer o | Smaller Reporting Company o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x
As of June 30, 2006,2009, the last business day of the registrant’s most recently completed second quarter, the aggregate market value of common shares held by non-affiliates of the registrant was $1,078,914,911.$294,674,470.
As of March 13, 2007,February 26, 2010 the number of common shares of the registrant outstanding was 57,408,235.92,864,448.
Documents incorporated by reference: Portions of the Proxy Statement for the 20072010 Annual Meeting of Shareholders of the Registrant to be filed subsequently with the SEC are incorporated by reference into Part III of this report.
Explanatory Note
In preparing the 2006 financial statements, we determined that certain errors existed in our 2005 and prior financial statements related to cash and cash equivalents, marketable securities, restricted cash, distributions payable, rental revenues, workers compensation expense, loan procurement cost amortization and several other matters. The Company corrected the errors by restating the Predecessor owners’ equity at January 1, 2004, its December 31, 2005 and 2004 consolidated and combined financial statements and accompanying notes to the consolidated financial statements, and quarterly data for 2005 and the first three quarters of 2006. We also restated other related financial data presented in Items 6, 7, and 15 of this Annual Report on Form 10-K which include Selected Financial Data and Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Forward-Looking Statements
This Annual Report on Form 10-K together withand other statements and information publicly disseminated by U-Store-It Trust (“we,” “us,” “our” or the “Company”), containscontain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements are based on estimates, assumptions and expectations that may not be realized and are inherently subject to risks uncertainties and other factors,uncertainties, many of which we cannot be predictedpredict with accuracy and some of which we might not even be anticipated.anticipate. Although we believe the estimates, assumptions and expectations reflected in these forward-looking statements are based on reasonable, assumptions, future events andour actual results, performance transactions or achievements, financial and otherwise, may differ materially from the results performance, transactions or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to:
·changes in national and local economic, business, real estate and other market conditions;conditions which, among other things, reduce demand for self-storage facilities or increase costs of owning and operating self-storage facilities;
· the competitive environmentcompetition from other self-storage facilities and storage alternatives, which could result in which we operate;lower occupancy and decreased rents;
· the execution of our business plan;
· financing risks;risks including the risk of over-leverage and the corresponding risk of default on our mortgage and other debt and potential inability to refinance existing indebtedness;
· increases in interest rates and operating costs;
· counterparty non-performance related to the use of derivative financial instruments;
·our ability to maintain our status as a real estate investment trust (“REIT”) for federal income tax purposes;
· acquisition and development risks;risks, including unanticipated costs associated with the integration and operation of acquisitions;
· risks of investing through joint ventures, including risks that our joint venture partners may not fulfill their obligations or may pursue actions that are inconsistent with our objectives;
·changes in real estate and zoning laws or regulations;
· risks related to natural disasters;
· potential environmental and other liabilities; and
· material weaknesses in our internal control over financial reporting;
· other factors affecting the real estate industry generally or the self-storage industry in particular; and
·other risks identified in Item 1A of this Annual Report on Form 10-K and, from time to time, in other reports we file with the Securities and Exchange Commission (the “SEC”) or in other documents that we publicly disseminate.
Given these uncertainties and the other risks identified elsewhere in this Annual Report on Form 10-K, we caution readers not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise except as may be required inby securities laws.
Overview
We are a self-administered and self-managed real estate company focused primarily on the ownership, operation, acquisition and development of self-storage facilities in the United States.
As of December 31, 2006,2009, we owned 399367 self-storage facilities located in 2726 states and aggregatingin the District of Columbia containing an aggregate of approximately 25.423.7 million rentable square feet. As of December 31, 2006, we managed 14 additional2009, approximately 75.2% of the rentable square footage at our facilities owned by Rising Tide Development, LLC (“Rising Tide Development”), a company owned and controlled by Robert J. Amsdell, our former Chairman and Chief Executive Officer, and Barry L. Amsdell, a former Trustee. We also have the right to manage one additional facility that may be acquired by Rising Tide Development from an unaffiliated third party. As of December 31, 2006, our 399 facilities were approximately 78.2%was leased to approximately 173,000150,000 tenants, and no single tenant accounted for more than 1%represented a significant concentration of our annual rental revenue.revenues.
Our self-storage facilities are designed to offer affordable, easily-accessible and secure storage space for our residential and commercial customers. Our customers rent storage units for their exclusive use, typically on a month-to-month basis. Additionally, some of our facilities offer outside storage areas for vehicles and boats. Our facilities are specifically designed to accommodate both residential and commercial customers, with features such as security systems and wide aisles and load-bearing capabilities for large truck access. All of our facilities have an on-site manager during business hours, and 307,249, or approximately 77%68%, of our facilities have a manager who resides in an apartment at the facility. Our customers can access their storage units during business hours, and some of our facilities provide customers with 24-hour access through computer controlled access systems. Our goal is to provide customers with the highest standard of facilities and service in the industry. To that end, approximately 53%68% of our facilities include climate controlled units, compared to the national average of 39% as cited49% reported by the 20072009 Self-Storage Almanac.
We were formed in July 2004 to succeed the self-storage operations owned directly and indirectly by Robert J. Amsdell, Barry L. Amsdell, Todd C. Amsdell, and their affiliated entities and related family trusts (which entities and family trusts are referred to herein as the “Amsdell Entities”). We are organized as a REIT under Maryland law,REIT. We own our assets and we believe that we qualify for taxation as a REIT for federal income tax purposes beginning with our short taxable year ended December 31, 2004. From inception until October 2004, we did not have any operations. We commenced operations as a publicly-traded REIT in October 2004 after completing the mergers of certain Amsdell Entities with and into us, our initial public offering (“IPO”), and the consummation of various other formation transactions that occurred concurrently with, or shortly after, completion of our IPO.
We conduct all of our business through our operating partnership, U-Store-It, L.P. (our “Operating Partnership”), of which we serveand its subsidiaries. We control the Operating Partnership as its sole general partner and, its subsidiaries. Asas of December 31, 2006,2009, we heldowned an approximately 91.7% of95.1% interest in the aggregate partnership interests in our operating partnership. Since its formation in 1996, our operating partnershipOperating Partnership. Our Operating Partnership has been engaged in virtually all aspects of the self-storage business, including the development, acquisition, ownership and operation of self-storage facilities.
Acquisition and Disposition Activity
As of December 31, 20062009 and 20052008, we owned 399367 and 339387 facilities, respectively, that contained an aggregate of 25.423.7 million and 20.825.0 million rentable square feet with occupancy rates of 78.2%75.2% and 81.2%78.9%, respectively. As of December 31, 20062009 we had facilities in 27the District of Columbia and the following 26 states: Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and Wisconsin. A complete listing of, and certainadditional information about, our facilities is included in Item 2 of this Annual Report on Form 10-K. The following acquisitions occurred during the years ended December 31, 2006is a summary of our 2009 and 2005:2008 acquisition and disposition activity:
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| Occupancy as of |
| Total |
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| Total Rentable |
| Number of |
| December 31, |
| Number of |
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Facility/Portfolio |
| Acquisition Date |
| Square Feet |
| Units |
| 2006 |
| Facilities |
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Rising Tide Property |
| January 2005 |
| 83,756 |
| 636 |
| 81.70 | % | 1 |
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Gaithersburg, MD Facility |
| January 2005 |
| 87,170 |
| 798 |
| 69.50 | % | 1 |
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Rising Tide Properties |
| March 2005 |
| 155,200 |
| 1,397 |
| 86.80 | % | 2 |
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Ford Storage Portfolio |
| March 2005 |
| 257,656 |
| 1,642 |
| 77.84 | % | 5 |
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A-1 Storage Portfolio |
| March 2005 |
| 201,114 |
| 1,854 |
| 78.40 | % | 5 |
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Liberty Self-Stor Portfolio |
| April 2005 |
| 702,553 |
| 5,331 |
| 79.40 | % | 14 |
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Frisco I & II, TX and Ocoee, FL Facilities |
| April 2005 |
| 198,876 |
| 1,626 |
| 82.80 | % | 3 |
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Ace Self Storage |
| May 2005 |
| 30,343 |
| 402 |
| 89.10 | % | 1 |
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Extra Closet Facilities |
| May 2005 |
| 99,178 |
| 750 |
| 69.51 | % | 2 |
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Tempe, AZ Facility |
| July 2005 |
| 53,525 |
| 408 |
| 91.70 | % | 1 |
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Clifton, NJ Facility |
| July 2005 |
| 105,625 |
| 1,014 |
| 81.50 | % | 1 |
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National Self Storage Portfolio |
| July 2005 |
| 3,742,582 |
| 32,939 |
| 83.52 | % | 71 |
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Elizabeth, NJ and Hoboken, NJ Facilities |
| August 2005 |
| 74,883 |
| 1,436 |
| 67.64 | % | 2 |
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Colorado Portfolio |
| September 2005 |
| 321,734 |
| 2,931 |
| 80.37 | % | 7 |
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Miami, FL Facilities |
| September 2005 |
| 152,075 |
| 1,504 |
| 67.20 | % | 2 |
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Pensacola, FL Facility |
| September 2005 |
| 79,455 |
| 701 |
| 90.80 | % | 1 |
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Texas Storage Portfolio |
| September 2005 |
| 227,769 |
| 1,985 |
| 75.10 | % | 4 |
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Dallas, TX Portfolio |
| October 2005 |
| 323,030 |
| 2,553 |
| 87.50 | % | 6 |
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Jacksonville, FL Facility |
| November 2005 |
| 79,366 |
| 761 |
| 46.50 | % | 1 |
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Texas Facility |
| November 2005 |
| 75,120 |
| 581 |
| 24.60 | % | 1 |
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California Portfolio |
| December 2005 |
| 447,905 |
| 4,101 |
| 75.58 | % | 6 |
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Fredericksburg, VA Facilities |
| December 2005 |
| 131,368 |
| 1,091 |
| 55.55 | % | 2 |
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Nashville, TN Portfolio |
| December 2005 |
| 268,527 |
| 1,886 |
| 77.10 | % | 3 |
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| 2005 Total (1) |
| 7,898,810 |
| 68,327 |
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| 142 |
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Nashville, TN Portfolio |
| January 2006 |
| 204,400 |
| 1,311 |
| 76.70 | % | 2 |
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Dallas, TX Portfolio |
| January 2006 |
| 132,350 |
| 1,022 |
| 92.10 | % | 2 |
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U-Stor Self Storage Portfolio |
| February 2006 |
| 172,900 |
| 1,259 |
| 75.30 | % | 3 |
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Sure Save Portfolio |
| February 2006 |
| 1,816,754 |
| 16,040 |
| 67.49 | % | 24 |
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Texas Storage Portfolio |
| March 2006 |
| 272,859 |
| 2,241 |
| 72.50 | % | 4 |
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Nickey Portfolio |
| April 2006 |
| 388,168 |
| 2,567 |
| 84.93 | % | 4 |
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SecurCare Portfolio |
| May 2006 |
| 326,377 |
| 3,114 |
| 82.76 | % | 4 |
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Texas Storage Portfolio |
| June 2006 |
| 71,360 |
| 587 |
| 58.40 | % | 1 |
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Jernigan Portfolio |
| July 2006 |
| 664,406 |
| 5,343 |
| 71.69 | % | 9 |
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U-Stor Self Storage Portfolio |
| August 2006 |
| 62,600 |
| 435 |
| 95.90 | % | 1 |
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Bailes Portfolio |
| August 2006 |
| 215,841 |
| 1,565 |
| 81.67 | % | 3 |
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In & Out Self Storage Portfolio |
| August 2006 |
| 127,570 |
| 932 |
| 74.88 | % | 1 |
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Texas Storage Portfolio |
| September 2006 |
| 142,180 |
| 1,160 |
| 49.10 | % | 2 |
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| 2006 Total |
| 4,597,765 |
| 37,576 |
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| 60 |
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| 2005 and 2006 Total (1) |
| 12,496,575 |
| 105,903 |
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| 202 |
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Facility/Portfolio |
| Location |
| Transaction Date |
| Number of Facilities |
| Purchase / Sales |
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2009 Dispositions: |
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68th Street Asset |
| Miami, FL |
| January 2009 |
| 1 |
| $ | 2,973 |
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Albuquerque, NM Asset |
| Albuquerque, NM |
| April 2009 |
| 1 |
| 2,825 |
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S. Palmetto Asset |
| Ontario, CA |
| June 2009 |
| 1 |
| 5,925 |
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Hotel Circle Asset |
| Albuquerque, NM |
| July 2009 |
| 1 |
| 3,600 |
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Jersey City Asset |
| Jersey City, NJ |
| August 2009 |
| 1 |
| 11,625 |
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Dale Mabry Asset |
| Tampa, FL |
| August 2009 |
| 1 |
| 2,800 |
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Winner Assets |
| Multiple locations in CO |
| September 2009 |
| 6 |
| 17,300 |
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Baton Rouge Asset (Eminent Domain) |
| Baton Rouge, LA |
| September 2009 |
| (b) |
| 1,918 |
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North H Street Asset (Eminent Domain) |
| San Bernardino, CA |
| September 2009 |
| 1 |
| (c) |
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Boulder Assets (a) |
| Boulder, CO |
| September 2009 |
| 4 |
| 32,000 |
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Winner Assets |
| Multiple locations in CO |
| October 2009 |
| 2 |
| 6,600 |
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Brecksville Asset |
| Brecksville, OH |
| November 2009 |
| 1 |
| 3,300 |
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| 20 |
| $ | 90,866 |
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2008 Acquisitions: |
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Uptown Asset |
| Washington, DC |
| January 2008 |
| 1 |
| $ | 13,300 |
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2008 Dispositions: |
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77th Street Asset |
| Miami, FL |
| March 2008 |
| 1 |
| $ | 2,175 |
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Leesburg Asset |
| Leesburg, FL |
| March 2008 |
| 1 |
| 2,400 |
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Lakeland Asset |
| Lakeland, FL |
| April 2008 |
| 1 |
| 2,050 |
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Endicott Asset |
| Union, NY |
| May 2008 |
| 1 |
| 2,250 |
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Linden Asset |
| Linden, NJ |
| June 2008 |
| 1 |
| 2,825 |
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Baton Rouge/Prairieville Assets |
| Multiple locations in LA |
| June 2008 |
| 2 |
| 5,400 |
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Churchill Assets |
| Multiple locations in MS |
| August 2008 |
| 4 |
| 8,333 |
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Biloxi/Gulf Breeze Assets |
| Multiple locations in MS/FL |
| September 2008 |
| 2 |
| 10,760 |
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Deland Asset |
| Deland, FL |
| September 2008 |
| 1 |
| 2,780 |
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Mobile Assets |
| Mobile, AL |
| September 2008 |
| 2 |
| 6,140 |
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Hudson Assets |
| Hudson, OH |
| October 2008 |
| 2 |
| 2,640 |
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Stuart/Vero Beach Assets |
| Multiple locations in FL |
| October 2008 |
| 2 |
| 4,550 |
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Skipper Road Assets |
| Multiple locations in FL |
| November 2008 |
| 2 |
| 5,020 |
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Waterway Asset |
| Miami, FL |
| December 2008 |
| 1 |
| 4,635 |
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| 23 |
| $ | 61,958 |
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(1) (a)We provided $17.6 million in seller financing to the buyer as part of the Boulder Assets disposition.
(b)Approximately one third of the Baton Rouge Asset was taken in conjunction with eminent domain proceedings. We continue to own and operate the remaining two thirds of the asset and include the asset in our total portfolio property count.
(c)The entirety of the North H Street Asset was taken in conjunction with eminent domain proceedings and we have removed this asset from our total numberportfolio asset count. We expect to finalize compensatory terms with discussions with the State of facilities excludes four facilities that were purchased and subsequently sold during 2005. Additionally, we consolidated four facilities California by the fourth quarter of 2010.into existing facilities during 2005.
The following table summarizes the change in number of our self-storage facilities from January 1, 20052008 through December 31, 2006:2009:
| 2006 |
| 2005 |
| |
Balance — Beginning of year |
| 339 |
| 201 |
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Facilities acquired |
| 60 |
| 146 |
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Facilities consolidated |
| — |
| (4 | ) |
Facilities sold |
| — |
| (4 | ) |
Balance — End of year |
| 399 |
| 339 |
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| 2009 |
| 2008 |
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Balance - Beginning of year |
| 387 |
| 409 |
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Facilities acquired |
| — |
| 1 |
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Facilities sold/ eminent domain |
| (20 | ) | (23 | ) |
Balance - End of year |
| 367 |
| 387 |
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Financing Activities
We entered into the
The following significant financingssummarizes certain financing activities during the yearsyear ended December 31, 2005 and 2006:2009:
· Lehman Brothers Fixed Rate Mortgage Loan.New Credit Facility. In July 2005, one of On December 8, 2009, we and our subsidiariesOperating Partnership entered into a fixed rate mortgagethree-year, $450 million secured credit facility with Wells Fargo Securities, LLC and Banc of America Securities LLC, as joint lead arrangers. Our new credit facility is comprised of a $200 million secured term loan agreement with Lehman Brothers Bank, FSB in the principal amount of $80.0 million. The mortgage loan, which is secured by 24 of our self-storage facilities, bears interest at 5.13% and matures in August 2012.
·LaSalle Bank Fixed Rate Mortgage Loan. In August 2005, one of our subsidiaries entered into a fixed rate mortgage loan agreement with LaSalle Bank National Association in the principal amount of $80.0 million. The mortgage loan, which is secured by 29 of our self-storage facilities, bears interest at 4.96% and matures in September 2012.
·AEGON USA Fixed Rate Mortgage Loan. In November 2005, one of our subsidiaries entered into a fixed rate mortgage loan with Transamerica Financial Life Insurance Company, a subsidiary of AEGON USA Realty Advisors, Inc., in the principal amount of $72.5 million. The mortgage loan, which is secured by 37 of our self-storage facilities, bears interest at 5.97% and matures in November 2015. We assumed the obligation to enter into this loan in connection with the National Self Storage acquisition.
·Repayment of Balance under Revolving CreditFacility. We used a portion of the proceeds from our October 2005 public offering to pay down the outstanding balance under our $150.0$250 million secured revolving credit facility. TheOur new credit facility was scheduled to terminate on October 27, 2007, with the option for us to extend the termination date to October 27, 2008. As described below, we replaced our secured revolving credit facility with a $250.0previous $450 million unsecured revolving credit facility in February 2006. Borrowings under the facility bore interest at a variable rate based upon the prime rate or LIBOR and in each case, a spread depending on our leverage ratio. The credit facility was secured by certain of our self-storage facilities and required that we maintain a minimum “borrowing base” of properties. As of December 31, 2005, we had no outstanding balance under our revolving credit facility. As of December 31, 2005, we had approximately $131.82009, $200 million available under our revolving credit facility as a result of the then available borrowing base of propertieswas outstanding under the facility.
·Term Loan Agreement. In February 2006, we and our operating partnership entered into a 60-day, unsecured $30 million term loan agreement with Wachovia Bank, National Association as the lender. The term loan bore interest at a variable rate of LIBOR plus 175 basis points. The loan proceeds were used to finance a portion of the Sure Save Portfolio. The loan was paid in full from proceeds obtained upon entering into a new revolving credit facility in February 2006.
·Revolving Credit Facility. In February 2006, we and our operating partnership entered into ano amounts were outstanding under the revolving portion of the new three-year $250.0 million unsecured revolvingcredit facility. The interest rate under the credit facility with Wachovia Bank, National Association, replacingdepends on our existing $150.0 million secured revolving facility. The revolving credit facility was scheduledleverage levels and ranges from 3.25% to terminate in February 2009, but we replaced it4.00% over LIBOR, with a new revolving credit facility in November 2006 as described below. The termsLIBOR floor of the revolving credit facility allowed us to increase the amount that may be borrowed up to $350.0 million at a later date, if necessary. The facility required1.5%. Amounts that we satisfy certain financial coverage ratios and operating covenants, including a maximum leverage ratio and a minimum interest coverage ratio. Borrowingsrepay under the facility bore interest, at the Company’s option, at either an alternate base rate or a Eurodollar rate, in each case plus an applicable margin. The alternative base interest rate was a fluctuating rate equal to the higher of the prime rate or the sum of the federal funds effective rate plus 50 basis points. The applicable margin for the alternative base rate varied from 0.15% to 0.60% depending on the Company’s leverage ratio. The Eurodollar rate was a periodic fixed rate equal to LIBOR. The applicable margin for the Eurodollar rate varied from 1.15% to 1.60% based on the Company’s leverage ratio.
·Term Loan Agreement. In November 2006, we and our operating partnership entered into a 30-day, unsecured $50 million term loan agreementmay not be re-borrowed. We, together with Wachovia Bank, National Association as the lender. The term loan bears interest at a variable rate of LIBOR plus 115 basis points. The loan proceeds, along with borrowings under our revolving credit facility, were used to finance the repayment of maturing secured loans. The loan was paid in full from proceeds obtained upon entering into a new revolving credit facility in November 2006.
·Revolving Credit Facility. In November 2006, we and our operating partnership entered into a new three-year $450.0 million unsecured credit facility with Wachovia Capital Markets,wholly-owned subsidiaries, USI II, LLC and Keybanc Capital Markets, replacing our existing $250.0 million unsecured revolving facility. The facility consists of a $200 million term loan and a $250 million revolvingYSI XXIX, L.P., are guarantors under the new credit facility. The new credit facility has a three-year term with a one-year extension optioncontains customary affirmative and scheduled termination in November 2009. Borrowingsnegative covenants, including restrictions on distributions to our shareholders, and financial covenants, including liquidity and net worth requirements. Our ability to borrow from time to time under the credit facility bear interest,revolver is subject to our ongoing compliance with these covenants.
·Small Mortgages — Regional Bank Financings. During 2009, we obtained an aggregate of $119.8 million in secured financings with 17 community and regional banks. These loans, which range in size from $1.1 million to $25.6 million, are secured by mortgages on 45 of our properties. The weighted average maturity of these loans at our option, at either an alternative base rate or a Eurodollar rate, in each case, plus an applicable margin based on our leverage ratio or our credit rating. The alternative base interest rate is a fluctuating rate equal to the higher of the prime rate or the sum of the federal funds effective rate plus 50 basis points. The applicable margin for the alternative base rate will vary from 0.00% to 0.50% depending on our leverage ratio prior to achieving an investment grade rating, and will vary from 0.00% to 0.25% depending on our credit rating after achieving an investment grade rating. The Eurodollar rate is a rate of interest that is fixed for interest periods of one, two, three or six months based on the LIBOR rate determined two business days prior to the commencement of the applicable interest period. The applicable margin for the Eurodollar rate will vary from 1.00% to 1.50% depending on our leverage ratio prior to achieving an investment grade rating, and will vary from 0.425% to 1.00% depending on our credit rating after achieving an investment grade rating. At December 31, 2006, borrowings under2009 was 6.6 years and the unsecured credit facility had a weighted average interest rate of 6.63%the loans is 7.01%. These loans contain customary affirmative, negative and financial covenants. We or the Operating Partnership are guarantors under each of these loans for customary non-recourse carve-outs.
Capital Markets Activity
In October 2005,·Joint Venture. On August 13, 2009, we completedconsummated a follow-on public offering, pursuantjoint venture with an affiliate of Heitman, LLC. We contributed 22 properties to this joint venture, which are located in eight states, and received a distribution of approximately $51 million in cash at closing and a 50% interest in this joint venture, which we consolidate. We used the proceeds distributed to us by the joint venture to reduce the outstanding balance under our prior unsecured credit facility and for general corporate purposes. We provide day-to-day management services for the properties of the joint venture in exchange for a market-rate management fee.
·Public Offering. On August 19, 2009, we sold an aggregate of 19,665,00032.2 million common shares (including 2,565,000 shares pursuant to the exercise of the underwriters’ option) at an offering price of $20.35 per share,beneficial interest for grossnet proceeds of $400.2approximately $161.9 million. The offering resultedAdditionally, during 2009 we sold 2.5 million shares in conjunction with our at the market program for net proceeds to the Company, after deducting underwriting discount and commissions and expenses of the offering, of approximately $378.7$9.7 million. We used the net proceeds from these issuances to repay existing indebtedness, including under our prior unsecured credit facility, and for general corporate purposes.
Business Strategy
Our business strategy consists of several elements:
· Maximize cash flow from our facilities — Our operating strategy focuses on maximizing sustainable rents at our facilities while achieving the highest sustainable rent levels at each of our facilities.and sustaining occupancy targets. We utilize our operating systems and experienced personnel to manage the balance between rental rates, discounts, and physical occupancy with an objective of maximizing our rental revenue.
· Acquire facilities within our targeted markets — We willAlthough our business plan does not contemplate significant facilities acquisitions in 2010, we expect to continue to selectively acquire facilitiesselective acquisitions in markets that we believe have high barriers to entry, strong demographic fundamentals and existing supply at or below the demand for storage in the market.excess of storage capacity. We expect to focus our evaluation of acquisition opportunities in markets where we currently maintain management that can be extended to additional facilities. We believe the self-storage industry will continue to provideafford us with opportunities for growth through acquisitions due to the highly fragmented composition of the industry. We intend to acquire facilities primarily in areas that we consider to be growth markets, such as Arizona, California, Florida, and the Northeastern United States.
·Utilize our expertise in selective newdevelopments — We seek to use our development expertise and access to multiple financing sources to pursue new developments in areas where we have facilities and perceive there to be unmet demand. We expect to pursue our development primarily in conjunction with joint venture partners.
Investment and Market Selection Process
We focus on targeted investmentsmaintain a disciplined and focused process in the acquisition and development of self-storage facilities. Our investment committee, which consistscomprised of certain of our executive officers and is led by Dean Jernigan, our President and Chief Executive Officer, oversees our investment process. Our investment process involves fivesix stages — identification, initial due diligence, economic assessment, investment committee approval (and when required, Board approval) and, final due diligence, and documentation. Through our investment committee, we intend to focus on the following criteria:
· Targeted Marketsmarkets — Our targeted markets include areas where we currently maintain management that can be extended to additional facilities, or where we believe that we can acquire a significant number of facilities efficiently and within a short period of time. We evaluate both the broader market and the immediate area, typically five miles around the facility, for their ability to support above-average demographic growth. We will seek to growincrease our presence primarily in areas that we consider to beexpect will experience growth, markets, such as Arizona, California,including areas within Illinois, Texas, Florida and the Northeastern United States and to enter new markets should suitable opportunities arise.
· Quality of Facilityfacility — We focus on self-storage facilities that have good visibility and are located near retail centers, which typically provide high traffic corridors and are generally located near residential communities and commercial customers.
· Growth Potentialpotential — We target acquisitions that offer growth potential through increased operating efficiencyefficiencies and, in some cases, through additional leasing efforts, renovations or expansions. In addition to acquisitions ofacquiring single facilities, we seek to invest in portfolio acquisitions, searching for situations where there isincluding those offering significant potential for increased operating efficiency and anthe ability to spread our fixed costs across a large base of facilities.
From the completion of our IPO through December 31, 2006, we acquired 252 facilities totaling approximately 15.6 million rentable square feet for consideration of approximately $1.1 billion. We believe that the self-storage industry will continue to provide us with opportunities for future growth through consolidation due to the highly-fragmented composition of the industry.
Operating Segment
We have one reportable operating segment: we own, operate, develop, and acquire self-storage facilities.
Concentration
Our self-storage facilities are located in major metropolitan areas as well as rural areas and have numerous tenants per facility. All our operations are within the United States and noNo single tenant represents 1% or morerepresented a significant concentration of our 2009 revenues. TheOur facilities in Florida, California, Texas and Illinois provided approximately 18%, 15%, 10% and New Jersey7%, respectively, of our total 2009 revenues. Our facilities in these states provided approximately 19%, 16%15%, 7%9% and 6%7%, respectively, for the year ended December 31, 2006 and 24%, 11%, 10% and 8% for the year ended December 31, 2005 (See Note 3 to the Consolidated and Combined Financial Statements).of our total 2008 revenues.
Seasonality
We typically experience minor seasonal fluctuations in the occupancy levels ofat our facilities, which arewith the levels generally slightly higher during the summer months due to increased moving activity.
Financing Strategy
Although our organizational documents contain no limitation on the amount of debt we may incur, we maintain what we consider to be a conservative capital structure characterized by the use of leverage in a manner that we believe is reasonable and prudent and that will enable us to have ample cash flow to cover debt service and make distributions to our shareholders. As of December 31, 2006,2009, our debt to total capitalization ratio determined(determined by dividing the carrying value of our total indebtedness by the sum of (a) the market value of our outstanding common shares and operating partnership units and (b) the carrying value of our total indebtedness,indebtedness) was approximately 40.6%51.9%. Our ratio of debt to the depreciated cost of our real estate assets as of December 31, 2009 was approximately 53.7% compared to approximately 62.7% as of December 31, 2008. We expect to finance additional investments in self-storage facilities through the most attractive available source of capital at the time of the transaction, in a manner consistent with maintaining a strong
financial position and future financial flexibility. These capital sources may include borrowings under the revolving portion of our revolvingsecured credit facility sellingand through additional secured financings, sales of common or preferred shares or debt securities throughin public offerings or private placements, incurring additional secured indebtedness, issuingissuances of common or preferred units in our operating partnershipOperating Partnership in exchange for contributed property, issuing preferred units in our operating partnership to institutional partnersproperties or cash and formingformations of joint ventures. We also may consider selling less productive self-storagesell facilities from timethat we no longer view as core assets and reallocate the sales proceeds to time in order to reallocate proceeds from these sales into more productive facilities.fund other growth.
Competition
The continued
New self-storage facility development of new self-storage facilities has intensified the competition among self-storage operators in many market areas in which we operate. Self-storage facilities compete based on a number of factors, including location, rental rates,
security, suitability of the facility’s design to prospective customers’ needs and the manner in which the facility is operated and marketed. In particular, the number of competing self-storage facilities in a particular market could have a material effect on our occupancy levels, rental rates and on the overall operating performance of our facilities. We believe that the primary competition for potential customers of any of our self-storage facilities comes from other self-storage facilities within a three-mile radius of that facility. We believe we have positioned our facilities within their respective markets as high-quality operators that emphasize customer convenience, security and professionalism.
Our key competitors include local and regional operators as well as the other public self-storage REITS, including Public Storage, Sovran Self Storage and Extra Space Storage Inc. These companies, some of which operate significantly more facilities than we do and have greater resources than we have, and other entities may generally be able to accept more risk than we determine is prudent, including risks with respect to the geographic proximity of facility investments and the payment of higher facility acquisition prices. This competition may generally reduce the number of suitable acquisition opportunities available to us, increase the price required to be able to consummate the acquisition of particular facilities and reduce the demand for self-storage space in certain areas where our facilities are located. Nevertheless, we believe that our experience in operating, acquiring, developing and obtaining financing for self-storage facilities should enable us to compete effectively.
Government Regulation
We are subject to various laws, ordinances and regulations, including regulations relating to lien sale rights and procedures and various federal, state and local environmental regulations that apply generally to the ownership of real property and the operation of self-storage facilities.
Under various federal, state and local laws, ordinances and regulations, an owner or operator of real property may become liable for the costs of removal or remediation of hazardous substances released on or in its property. These laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of such hazardous substances. The presence of hazardous substances, or the failure to properly remediate such substances, when released, may adversely affect the property owner’s ability to sell the real estate or to borrow using real estate as collateral, and may cause the property owner to incur substantial remediation costs. In addition to claims for cleanup costs, the presence of hazardous substances on a property could result in a claim by a private party for personal injury or a claim by an adjacent property owner or user for property damage. We may also become liable for the costs of removal or remediation of hazardous substances stored at the facilities by a customer even though storage of hazardous substances would be without our knowledge or approval and in violation of the customer’s storage lease agreement with us.
Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional facilities. Whenever the environmental assessment for one of our facilities indicates that a facility is impacted by soil or groundwater contamination from prior owners/operators or other sources, we will work with our environmental consultants and where appropriate, state governmental agencies, to ensure that the facility is either cleaned up, that no cleanup is necessary because the low level of contamination poses no significant risk to public health or the environment, or that the responsibility for cleanup rests with a third party.
We are not aware of any environmental cleanup liability that we believe will have a material adverse effect on us. We cannot assure you, however, that these environmental assessments and investigations have revealed or will reveal all potential environmental liabilities, that no prior owner created any material environmental condition not known to us or the independent consultant or that future events or changes in environmental laws will not result in the imposition of environmental liability on us.
We have not received notice from any governmental authority of any material noncompliance, claim or liability in connection with any of our facilities, nor have we been notified of a claim for personal injury or property damage by a private party in connection with any of our facilities relating to environmental conditions.
We are not aware of any environmental condition with respect to any of our facilities that could reasonably be expected to have a material adverse effect on our financial condition or results of operations, and we do not expect that the cost of compliance with environmental regulations will have a material adverse effect on our financial condition or results of operations. We cannot assure you, however, that this will continue to be the case.
Insurance
We carry comprehensive liability, fire, extended coverage and rental loss insurance covering all of the facilities in our portfolio. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. We do not carry insurance for losses such as loss from riots, war or acts of God, and, in some cases, flooding,environmental hazards, because such coverage is not available or is not available at commercially reasonable rates. Some of our policies, such as those covering losses due to terrorism,terrorist activities, hurricanes, floods and earthquakes, are insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses.We also carry liability insurance to insure against personal injuries that might be sustained on our properties and director and officer liability insurance.
Offices
Our principal executive office is located at 6745 Engle460 E. Swedesford Road, Suite 300, Cleveland, Ohio 44130.3000, Wayne, PA 19087. Our telephone number is (440) 234-0700.(610) 293-5700. We believe that our current facilities are adequate for our present and future operations.
Employees
As of December 31, 2006,2009, we employed approximately 981953 employees, of whom approximately 87145 were corporate executive and administrative personnel and approximately 894808 were management and administrativeproperty level personnel. We believe that our relations with our employees are good. None of ourOur employees are not unionized.
Available Information
We file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports with the Securities and Exchange Commission (the “SEC”). You may obtain copies of these documents by visiting the SEC’s Public Reference Room at 100 F Street, N.E..N.E., Washington, D.C. 20549, by calling the SEC at 1-800-SEC-0330 or by accessing the SEC’s website at www.sec.gov. Our internet website address is www.u-store-it.com.www.ustoreit.com. You also can obtain on our website, free of charge, a copy of our annual report on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after we electronically file such reports or amendments with, or furnish them to, the SEC as well.SEC. Our internet website and the information contained therein or connected thereto are not intended to be incorporated by reference into this Annual Report on Form 10-K.
Also available on our website, free of charge, are copies of our Code of Business Conduct and Ethics, our Code of Ethics for Principal Executive Officer and Senior Financial Officers, our Corporate Governance Guidelines, and the charters for each of the committees of our Board of Trustees — the Audit Committee, the Corporate Governance and Nominating Committee, and the Compensation Committee. Copies of each of these documents are also available in print free of charge, upon request by any shareholder. You can obtain such copies in printof these documents by contacting Investor Relations by mail at 460 E. Swedesford Road, Suite 3000, Wayne, PA 19087.
Overview
Investors should carefully consider, among other factors, the risks set forth below. These risks are not the only ones that we may face. Additional risks not presently known to us or that we currently consider immaterial may also impair our business operations and hinder our ability to make expected distributions to our shareholders.
Our performance and the value9
Our rental revenues and operating costs and the value of our real estate assets, and consequently the value of our securities, are subject to the risk that if our facilities do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, our cash flow and ability to pay distributions to our shareholders will be adversely affected. Events or conditions beyond our control that may adversely affect our operations or the value of our facilities include:
·downturns in the national, regional and local economic climate;
·local or regional oversupply, increased competition or reduction in demand for self-storage space;Contents
·vacancies, changes in market rents for self-storage space;
·inability to collect rent from customers;
·increased operating costs, including maintenance, insurance premiums and real estate taxes;
·changes in interest rates and availability of financing;
·hurricanes, earthquakes and other natural disasters, civil disturbances or terrorist acts or acts of war that may result in uninsured or underinsured losses;
·significant expenditures associated with acquisitions and development projects, such as debt service payments, real estate taxes, insurance and maintenance costs which are generally not reduced when circumstances cause a reduction in revenues from a property;
·costs of complying with changes in laws and governmental regulations, including those governing usage, zoning, the environment and taxes; and
·the relative illiquidity of real estate investments.
In addition, prolonged periods of economic slowdown or recession, rising interest rates or declining demand for self-storage, or the public perception that any of these events may occur, could result in a general decline in rental revenues, which could impair our ability to satisfy our debt service obligations and to make distributions to our shareholders.
Rental revenues are significantlyinfluenced by demand for self-storage space generally, and a decrease in such demandwould likely have a greater adverse effect on our rental revenues than if we owned a more diversified real esate portfolio.
Because our portfolio of facilities consists primarily of self-storage facilities, we are subject to risks inherent in investments in a single industry. A decrease in the demand for self-storage space would likely have a greater adverse effect on our rental revenues than if we owned a more diversified real estate portfolio. Demand for self-storage space has been and could be adversely affected by weakness in the national, regional and local economies, changes in supply of, or demand for, similar or competing self-storage facilities in an area and the excess amount of self-storage space in a particular market. To the extent that any of these conditions occur, they are likely to affect market rents for self-storage space, which could cause a decrease in our rental revenue. Any such decrease could impair our ability to satisfy debt service obligations and make distributions to our shareholders.
Rising operating expenses could reduce our cash flow and funds available for futuredistributions.
Our facilities and any other facilities we acquire or develop in the future are and will be subject to operating risks common to real estate in general, any or all of which may negatively affect us. Our facilities are subject to increases in operating expenses such as real estate and other taxes, utilities, insurance, administrative expenses and costs for repairs and maintenance. If operating expenses increase without a corresponding increase in revenues, our profitability could diminish and limit our ability to make distributions to our shareholders.
We face risks associated with facility acquisitions that could impede our growth.related to current debt maturities, including refinancing and counterparty risk.
We
Approximately 15% (or approximately $115 million) of the aggregate principal amount of our total debt, including our mortgage and revolving indebtedness is due on or before December 31, 2010. Certain of our mortgages will have in the past acquired, and intend in the future to acquire, individual and portfolios of self-storage facilities, that would increase our size and potentially alter our capital structure. Although we believe that the acquisitions that we completed in the past and that we expect to undertake in the future have, and will, enhance our future financial performance, the success of such transactions is subject to a number of factors, including the risk that:
·wesignificant outstanding balances on their maturity dates, commonly known as “balloon payments.” We may not be ablehave the cash resources available to obtain financing for acquisitions on favorable terms;
11
·acquisitions may fail to perform as expected;
·the actual costs of repositioning or redeveloping acquired facilities may be higher than our estimates;repay those amounts, and
·acquisitions may be located in new markets where we may have limited knowledge and understandingto raise funds for such repayment either through the issuance of the local economy, an absencecapital stock, additional borrowings (which may include extension of business relationships in the areamaturity dates), joint ventures or unfamiliarity with local governmental and permitting procedures.
We also face significant competition for acquisitions and development opportunities. Some of our competitors have greater financial resources than we do and a greater ability to borrow funds to acquire facilities. These competitors may alsoasset sales. There can be willing and/or able to accept more risk than we can prudently manage, including risks with respect to the geographic proximity of investments and the payment of higher facility acquisition prices. This competition for investments may reduce the number of suitable investment opportunities available to us, may increase acquisition costs and may reduce demand for self-storage space in certain areas where our facilities are located and, as a result, adversely affect our operating results.
We may not be able to adapt our management and operation systems to respond to theintegration of additional facilities without disruption or expense.
From the completion of our IPO in October 2004 through December 31, 2006, we have acquired 252 facilities, containing approximately 15.6 million rentable square feet for an aggregate cost of approximately $1.1 billion. In 2007 we acquired three additional self-storage facilities. In addition, we expect to acquire additional self-storage facilities in the future. We cannot assure youno assurance that we will be able to adapt our management, administrative, accounting and operational systemsrefinance the debt on favorable terms or hire and retain sufficient operational staffat all. To the extent we cannot refinance debt on favorable terms or at all, we may be forced to integrate these facilities into our portfolio and manage any future acquisitiondispose of properties on disadvantageous terms or developmentpay higher interest rates, either of additional facilities without operating disruptions or unanticipated costs. As we acquire or develop additional facilities, we will be subject to risks associated with managing new facilities, including customer retention and mortgage default risks. In addition, acquisitions or developments may cause disruptions in our operations and divert management’s attention away from day-to-day operations. Furthermore, our profitability may suffer because of acquisition-related costs or amortization costs for acquired goodwill and other intangible assets. Our failure to successfully integrate any future facilities into our portfolio couldwhich would have an adverse effectimpact on our operating costsfinancial performance and our ability to make distributionspay dividends to our shareholders.investors
Acquired facilities may subject us to unknown liabilities.
Facilities that we have acquired or may acquire in the future may be subject to unknown liabilities for which we would have no recourse, or only limited recourse, to the former owners of such facilities. As a result, if a liability were asserted against us based upon ownership of an acquired facility, we might be required to pay significant sums to settle it, which could adversely affect our financial results and cash flow. Unknown liabilities relating to acquired facilities could include:
·liabilities for clean-up of undisclosed environmental contamination;
·claims by tenants, vendors or other persons arising on account of actions or omissions of the former owners of the facilities; and
·liabilities incurred in the ordinary course of business.
We face significant competition from other developers, owners and operators in the self-storage industry.
We compete with numerous developers, owners and operators in the self-storage industry, including other REITs, some of which own or may in the future own facilities similar to ours in the same markets in which our facilities are located, and some of which may have greater capital resources. In addition, due to the relatively low cost of each individual self-storage facility, other developers, owners and operators have the capability to build additional facilities that may compete with our facilities.
If our competitors build new facilities that compete with our facilities or offer space at rental rates below current market rates or below the rental rates we currently charge our customers, we may lose potential customers and we may be pressuredexposed to discount our
rental rates below those we currently charge in order to retain customers. As a result, our rental revenues may decrease, which could impair our ability to satisfy our debt service obligations and to pay distributions to our shareholders. In addition, increased competition for customers may require us to make capital improvements to facilities that we would not have otherwise made. Any unbudgeted capital improvements we undertake may reduce cash available for distributions to our shareholders.
Property ownership through joint ventures may limit our ability to act exclusively in our interest.
Although we currently have no joint venture investments, we may in the future co-invest with third parties through joint ventures. In any such joint venture, we may not be in a position to exercise sole decision-making authority regarding the facilities owned through joint ventures. Investments in joint ventures may, under certain circumstances, involve risks not present when a third party is not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their share of required capital contributions. Joint venture partners may have business interests or goals that are inconsistent with our business interests or goals and may be in a position to take actions contrary to our policies or objectives. Such investments also have the potential risk of impassecounterparty default or non-payment with respect to interest rate hedges, swap agreements, floors, caps and other interest rate hedging contracts that we may enter into from time to time, in which event we could suffer a material loss on strategic decisions,the value of those agreements. Although these agreements may lessen the impact of rising interest rates on us, they also expose us to the risk that other parties to the agreements will not perform or that we cannot enforce the agreements. There is no assurance that our potential counterparties on these agreements are likely to perform their obligations under such as a sale, because neitheragreements.
Financing our future growth plan or refinancing existing debt maturities could be impacted by negative capital market conditions.
Recently, domestic financial markets have experienced extreme volatility and uncertainty. Overall liquidity has tightened in the domestic financial markets, including the investment grade debt and equity capital markets for which we nor the joint venture partner would have full control over the joint venture. Any disputes that may arise between us and our joint venture partners could result in litigation or arbitration that could increase our expenses and distract our officers and/or Trustees from focusing their time and effort on our business. In addition, we might in certain circumstances be liable for the actions of our joint venture partners, and the activities of a joint venture could adversely affecthistorically sought financing. Consequently, there is greater uncertainty regarding our ability to qualify asaccess the credit markets in order to attract financing on reasonable terms nor can there be any assurance we can issue common or preferred equity securities at a REIT, even though we do not control the joint venture.reasonable price. Our ability to finance new acquisitions and refinance future debt maturities could be adversely impacted by our inability to secure permanent financing on reasonable terms, if at all.
Because real estate is illiquid, we may not be able to sell properties when appropriate.
Real estate property investments generally cannot be sold quickly. Also, the tax laws applicable to REITs require that we hold our facilities for investment, rather than sale in the ordinary course of business, which may cause us to forgo or defer sales of facilities that otherwise would be in our best interest. Therefore, we may not be able to dispose of facilities promptly, or on favorable terms, in response to economic or other market conditions, which may adversely affect our financial position.
We face system security risks as we depend upon automated processes and the Internet.
We have become increasingly dependent upon automated information technology processes. While we have attempted to mitigate this risk through offsite backup procedures and contracted data centers that include, in some cases, redundant operations, we could still be severely impacted by a catastrophic occurrence, such as a natural disaster or a terrorist attack. In addition, an increasing portion of our business operations are conducted over the Internet, increasing the risk of viruses that could cause system failures and disruptions of operations despite our deployment of anti-virus measures. Experienced computer programmers may be able to penetrate our network security and misappropriate our confidential information, create system disruptions or cause shutdowns.
Potential losses may not be covered by insurance, which could result in the loss of our investment in a facility and the future cash flows from the facility.
We carry comprehensive liability, fire, extended coverage and rental loss insurance covering all of the facilities in our portfolio. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. We do not carry insurance for losses such as loss from riots, war or acts of God, and, in some cases, flooding, because such coverage is not available or is not available at commercially reasonable rates. Some of our policies, such as those covering losses due to terrorism, floods and earthquakes, are insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. If we experience a loss at a facility that is uninsured or that exceeds policy limits, we could lose the capital invested in that facility as well as the anticipated future cash flows from that facility. Inflation, changes in building codes and ordinances, environmental considerations, and other factors also might make it impractical or undesirable to use insurance proceeds to replace a facility after it has been damaged or destroyed. In addition, if the damaged facilities are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if these facilities were irreparably damaged.
Terrorist attacks and other acts of violence or war may adversely impact our performance and may affect the markets on which our securities are traded.
Terrorist attacks against our facilities, or against the United States or our interests, may negatively impact our operations and the value of our securities. Attacks or armed conflicts could negatively impact the demand for self-storage facilities and increase the cost of insurance coverage for our facilities, which could reduce our profitability and cash flow. Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy.
Potential liability for environmental contamination could result in substantial costs.
We are subject to federal, state and local environmental regulations that apply generally to the ownership of real property and the operation of self-storage facilities. If we fail to comply with those laws, we could be subject to significant fines or other governmental sanctions.
Under various federal, state and local laws, ordinances and regulations, an owner or operator of real estate may be required to investigate and clean up hazardous or toxic substances or petroleum product releases at a facility and may be held liable to a governmental entity or to third parties for property damage and for investigation and clean up costs incurred by such parties in connection with contamination. Such liability may be imposed whether or not the owner or operator knew of, or was responsible for, the presence of these hazardous or toxic substances. The cost of investigation, remediation or removal of such substances may be substantial, and the presence of such substances, or the failure to properly remediate such substances, may adversely affect the owner’s ability to sell or rent such facility or to borrow using such facility as collateral. In addition, in connection with the ownership, operation and management of real properties, we are potentially liable for property damage or injuries to persons and property.
Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional facilities. We obtain or examine environmental assessments from qualified and reputable environmental consulting firms (and intend to conduct such assessments prior to the acquisition or development of additional facilities). The environmental assessments received to date have not revealed, nor are we aware of, any environmental liability that we believe will have a material adverse effect on us. However, we cannot assure you that any environmental assessments performed have identified or will identify all material environmental conditions, that any prior owner of any facility did not create a material environmental condition not known to us or that a material environmental condition does not otherwise exist with respect to any of our facilities.
Americans with Disabilities Act compliance may require unanticipated expenditures.
Under the Americans with Disabilities Act of 1990 (the “ADA”), all places of public accommodation are required to meet federal requirements related to physical access and use by disabled persons. A number of other U.S. federal, state and local laws may also impose access and other similar requirements at our facilities. A failure to comply with the ADA or similar state or local requirements could result in the governmental imposition of fines or the award of damages to private litigants affected by the noncompliance. Although we believe that our facilities comply in all material respects with these requirements (or would be eligible for applicable exemptions from material requirements because of adaptive assistance provided), a determination that one or more of our facilities is not in compliance with the ADA or similar state or local requirements would result in the incurrence of additional costs associated with bringing the facilities into compliance. If we are required to make substantial modifications to comply with the ADA or similar state or local requirements, we may be required to incur significant unanticipated expenditures.
We may become subject to litigation or threatened litigation which may divert management time and attention, require us to pay damages and expenses or restrict the operation of our business.
We may become subject to disputes with commercial parties with whom we maintain relationships or other parties with whom we do business. Any such dispute could result in litigation between us and the other parties. Whether or not any dispute actually proceeds to litigation, we may be required to devote significant management time and attention to its successful resolution (through litigation, settlement or otherwise), which would detract from our management’s ability to focus on our business. Any such resolution could involve the payment of damages or expenses by us, which may be significant. In addition, any such resolution could involve our agreement with terms that restrict the operation of our business.
One type of commercial dispute could involve our use of our brand name and other intellectual property (for example, logos, signage and other marks), for which we generally have common law rights but no federal trademark registration. There are other commercial parties, at both a local and national level, that may assert that our use of our brand names and other intellectual property conflict with their rights to use brand names and other intellectual property that they consider to be similar to ours. Any such commercial dispute and related resolution would involve all of the risks described above, including, in particular, our agreement to restrict the use of our brand name or other intellectual property.
The terms and covenants relating to our indebtedness could adversely impact our economic performance.
Like other real estate companies whichthat incur debt, we are subject to risks associated with debt financing, such as the insufficiency of cash flow to meet required debt service payment obligations and the inability to refinance existing indebtedness. If our debt cannot be paid, refinanced or extended at maturity, we may not be able to make distributions to shareholders at expected levels or at all and may not be able to acquire new properties. Failure to make distributions to our sharehodersshareholders could result in our failure to qualify as a REIT for federal income tax purposes. Furthermore, an increase in our interest expense could adversely affect our cash flow and ability to make distributions to shareholders. If we do not meet our debt service obligations, any facilities securing such indebtedness could be foreclosed on, which would have a material adverse effect on our cash flow and ability to make distributions and, depending on the number of facilities foreclosed on, could threaten our continued viability.
Our unsecuredsecured credit facility and unsecured term loan each containcontains (and any new or amended facility we may enter into from time to time will likely contain) customary restrictions, requirementsaffirmative and negative covenants, including financial covenants that, among other limitations on our abilitythings, require us to incur indebtedness, including total debt to asset ratios, secured debt to total asset ratios, debt service coverage ratioscomply with certain liquidity and minimum ratios of unencumbered assets to unsecured debt which we must maintain.net worth tests. Our ability to borrow under our credit facility is (and any new or amended facility we may enter into from time to time will be) subject to compliance with such financial and other covenants. In the event that we fail to satisfy these covenants, we would be in default under the credit facility and term loan and may be required to repay such debt with capital from other sources. Under such circumstances, other sources of debt or equity capital may not be available to us, or may be available only on unattractive terms. Moreover, the presence of such covenants in our credit agreements could cause us to operate our business with a view toward compliance with such covenants, which might not produce optimal returns for shareholders.
Increases in interest rates on variable rate indebtedness would increase our interest expense, which could adversely affect our cash flow and ability to make distributions to shareholders. Rising interest rates could also restrict our ability to refinance existing debt when it matures. In addition, an increase in interest rates could decrease the amounts that third parties are willing to pay for our assets, thereby limiting our ability to alter our portfolio promptly in relation to economic or other conditions. We have enteredmay enter into, and may, from time to time, enter into agreements such as interest rate hedges, swaps,swap agreements, floors, caps and other interest rate hedging contracts with respect to a portion of our variable rate debt. Although thesesuch agreements may lessen
the impact of rising interest rates on us, they also expose us to the risk that other parties to the agreements will not perform or that we cannot enforce the agreements. There is no assurance that our potential counterparties on swap agreements are likely to perform their obligations under such agreements.
Our organizational documents contain no limitation on the amount of debt we may incur. As a result, we may become highly leveraged in the future.
Our organizational documents contain no limitations on the amount of indebtedness that we or our operating partnership may incur. We could alter the balance between our total outstanding indebtedness and the value of our assets at any time. If we become more highly leveraged, then the resulting increase in debt service could adversely affect our ability to make payments on our outstanding indebtedness and to pay our anticipated distributions and/or the distributions required to maintain our REIT status, and could harm our financial condition.
Our ability to make distributions is subject to various risks.
Historically, we have paid quarterly distributions to our shareholders. Our ability to make distributions in the future will depend upon:
·the operational and financial performance of our facilities;
·capital expenditures with respect to existing and newly acquired facilities;
·general and administrative costs associated with our operation as a publicly-held REIT;
·the amount of, and the interest rates on, our debt; and
·the absence of significant expenditures relating to environmental and other regulatory matters.
Certain of these matters are beyond our control and any significant difference between our expectations and actual results could have a material adverse effect on our cash flow and our ability to make distributions to shareholders.
We depend on external sources of capital that are outside of our control; the unavailability of capital from external sources could adversely affect our ability to acquire or develop facilities, satisfy our debt obligations and/or make distributions to shareholders.
To continue to qualify as a REIT, we are required to distribute to our shareholders each year at least 90% of our REIT taxable income, excluding net capital gains or pay applicable income taxes. In order to eliminate federal income tax, we will be required to distribute annually 100% of our net taxable income, including capital gains. Because of these distribution requirements, we likely will not be able to fund all future capital needs, including capital for acquisitions and facility development, with income from operations. We therefore will have to rely on third-party sources of capital, which may or may not be available on favorable terms, if at all. Our access to third-party sources of capital depends on a number of things, including the market’s perception of our growth potential and our current and potential future earnings and our ability to continue to qualify as a REIT for federal income tax purposes. If we are unable to obtain third-party sources of capital, we may not be able to acquire or develop facilities when strategic opportunities exist, satisfy our debt obligations or make distributions to shareholders that would permit us to qualify as a REIT or avoid paying tax on our REIT taxable income.
Additional issuances of equity securities may be dilutive to shareholders.
The interests of our shareholders could be diluted if we issue additional equity securities to finance future developments or acquisitions or to repay indebtedness. Our Board of Trustees may authorize the issuance of additional equity securities without shareholder approval. Our ability to execute our business strategy depends upon our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including the issuance of common and preferred equity.
Because real estate is illiquid, we may not be able to sell properties when appropriate.
Real estate property investments generally cannot be sold quickly. Also, the tax laws applicable to REITs require that we hold our facilities for investment, rather than sale in the ordinary course of business, which may cause us to forgo or defer sales of facilities that otherwise would be in our best interest. Therefore, we may not be able to dispose of facilities promptly, or on favorable terms, in response to economic or other market conditions, which may adversely affect our financial position.
Rising operating expenses could reduce our cash flow and funds available for futuredistributions.
Our facilities and any other facilities we acquire or develop in the future are and will be subject to operating risks common to real estate in general, any or all of which may negatively affect us. Our facilities are subject to increases in operating expenses such as real estate and other taxes, utilities, insurance, administrative expenses and costs for repairs and maintenance. If operating expenses increase without a corresponding increase in revenues, our profitability could diminish and limit our ability to make distributions to our shareholders.
Our insurance coverage may not comply fully with certain loan requirements.
We maintain comprehensive insurance on each of our self-storage facilities in amounts sufficient to permit replacement of the property, subject to applicable deductibles. Certain of our properties serve as collateral for our mortgage-backed debt, some of which was assumed in connection with our acquisition of facilities, that requires us to maintain insurance at levels and on terms that are not commercially reasonable in the current insurance environment. We may be unable to obtain
required insurance coverage if the cost and/or availability make it impractical or impossible to comply with debt covenants. If we cannot comply with a lender’s requirements in any respect, the lender could declare a default that could affect our ability to obtain future financing and could have a material adverse effect on our results of operations and cash flows and our ability to obtain future financing. In addition, we may be required to self-insure against certain losses or the Company’s insurance costs may increase.
Potential losses may not be covered by insurance, which could result in the loss of our investment in a facility and the future cash flows from the facility.
We carry comprehensive liability, fire, extended coverage and rental loss insurance covering all of the facilities in our portfolio. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. We do not carry insurance for losses such as loss from riots, war or acts of God, and, in some cases, flooding and environmental hazards, because such coverage is not available or is not available at commercially reasonable rates. Some of our policies, such as those covering losses due to terrorism, hurricanes, floods and earthquakes, are insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. If we experience a loss at a facility that is uninsured or that exceeds policy limits, we could lose the capital invested in that facility as well as the anticipated future cash flows from that facility. Inflation, changes in building codes and ordinances, environmental considerations, and other factors also might make it impractical or undesirable to use insurance proceeds to replace a facility after it has been damaged or destroyed. In addition, if the damaged facilities are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if these facilities were irreparably damaged.
We cannot assure you of our ability to pay dividends in the future.
Historically, we have paid quarterly distributions to our shareholders, and we intend to pay quarterly dividends and to make distributions to our shareholders in amounts such that all or substantially all of our taxable income in each year, subject to certain adjustments, is distributed. This, along with other factors, should enable us to qualify for the tax benefits accorded to a REIT under the Internal Revenue Code. We have not established a minimum dividends payment level and all future distributions will be made at the discretion of our Board of Trustees. Our ability to pay dividends will depend upon, among other factors:
·the operational and financial performance of our facilities;
·capital expenditures with respect to existing and newly acquired facilities;
·general and administrative costs associated with our operation as a publicly-held REIT;
·maintenance of our REIT status;
·the amount of, and the interest rates on, our debt;
·the absence of significant expenditures relating to environmental and other regulatory matters; and
·other risk factors described in this Annual Report on Form 10-K.
Certain of these matters are beyond our control and any significant difference between our expectations and actual results could have a material adverse effect on our cash flow and our ability to make distributions to shareholders.
Our performance and the value of our self-storage facilities are subject to risks associated with our properties and with the real estate industry.
Our rental revenues and operating costs and the value of our real estate assets, and consequently the value of our securities, are subject to the risk that if our facilities do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, our cash flow and ability to pay distributions to our shareholders will be adversely affected. Events or conditions beyond our control that may adversely affect our operations or the value of our facilities include:
·downturns in the national, regional and local economic climate;
·local or regional oversupply, increased competition or reduction in demand for self-storage space;
·vacancies or changes in market rents for self-storage space;
·inability to collect rent from customers;
·increased operating costs, including maintenance, insurance premiums and real estate taxes;
·changes in interest rates and availability of financing;
·hurricanes, earthquakes and other natural disasters, civil disturbances, terrorist acts or acts of war that may result in uninsured or underinsured losses;
·significant expenditures associated with acquisitions and development projects, such as debt service payments, real estate taxes, insurance and maintenance costs which are generally not reduced when circumstances cause a reduction in revenues from a property;
·costs of complying with changes in laws and governmental regulations, including those governing usage, zoning, the environment and taxes; and
·the relative illiquidity of real estate investments.
In addition, prolonged periods of economic slowdown or recession, rising interest rates or declining demand for self-storage, or the public perception that any of these events may occur, could result in a general decline in rental revenues, which could impair our ability to satisfy our debt service obligations and to make distributions to our shareholders.
Rental revenues are significantlyinfluenced by demand for self-storage space generally, and a decrease in such demandwould likely have a greater adverse effect on our rental revenues than if we owned a more diversified real estate portfolio.
Because our portfolio of facilities consists primarily of self-storage facilities, we are subject to risks inherent in investments in a single industry. A decrease in the demand for self-storage space would have a greater adverse effect on our rental revenues than if we owned a more diversified real estate portfolio. Demand for self-storage space has been and could be adversely affected by ongoing weakness in the national, regional and local economies, changes in supply of, or demand for, similar or competing self-storage facilities in an area and the excess amount of self-storage space in a particular market. To the extent that any of these conditions occur, they are likely to affect market rents for self-storage space, which could cause a decrease in our rental revenue. Any such decrease could impair our ability to satisfy debt service obligations and make distributions to our shareholders.
Adverse macroeconomic and business conditions may significantly and negatively affect our revenues, profitability and results of operations.
The United States has recently experienced an economic slowdown that has resulted in higher unemployment, shrinking demand for products, large-scale business failures and tight credit markets. Our results of operations may be sensitive to changes in overall economic conditions that impact consumer spending, including discretionary spending, as well as to increased bad debts due to recessionary pressures. A continuation of ongoing adverse economic conditions affecting disposable consumer income, such as employment levels, business conditions, interest rates, tax rates, fuel and energy costs, and other matters could reduce consumer spending or cause consumers to shift their spending to other products and services. A general reduction in the level of discretionary spending or shifts in consumer discretionary spending could adversely affect our growth and profitability.
It is difficult to determine the breadth and duration of the economic and financial market problems and the many ways in which they may affect our customers and our business in general. Nonetheless, continuation or further worsening of these difficult financial and macroeconomic conditions could have a significant adverse effect on our sales, profitability and results of operations.
Our financial performance is dependent upon the economic and other conditions of the markets in which our facilities are located.
We are susceptible to adverse developments in the markets in which we operate, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors. Our facilities in California, Florida, Texas, Ohio, Tennessee, Illinois and Arizona accounted for approximately 17%, 16%, 11%, 8%, 7%, 7% and 5%, respectively, of our total rentable square feet as of December 31, 2009. As a result of this geographic concentration of our facilities, we are particularly susceptible to adverse market conditions in these areas. Any adverse economic or real estate developments in these markets, or in any of the other markets in which we operate, or any decrease in demand for self-storage space resulting from the local business climate could adversely affect our rental revenues, which could impair our ability to satisfy our debt service obligations and pay distributions to our shareholders.
Many states and local jurisdictions are facing severe budgetary problems which may have an adverse impact on our business and financial results.
Many states and jurisdictions are facing severe budgetary problems. Action that may be taken in response to these problems, such as increases in property taxes on commercial properties, changes to sales taxes or other governmental efforts, including mandating medical insurance for employees, could adversely impact our business and results of operations.
Terrorist attacks and other acts of violence or war may adversely impact our performance and may affect the markets on which our securities are traded.
Terrorist attacks against our facilities, the United States or our interests, may negatively impact our operations and the value of our securities. Attacks or armed conflicts could negatively impact the demand for self-storage facilities and increase the cost of insurance coverage for our facilities, which could reduce our profitability and cash flow. Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy.
We face risks and significant competition associated with actions taken by our competitors.
Actions by our competitors may decrease or prevent increases of the occupancy and rental rates of our properties. We compete with numerous developers, owners and operators of self-storage, including other REITs, some of which own or may in the future own properties similar to ours in the same submarkets in which our properties are located and some of which may have greater capital resources. In addition, due to the relatively low cost of each individual self-storage facility, other developers, owners and operators have the capability to build additional facilities that may compete with our facilities.
If our competitors build new facilities that compete with our facilities or offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose potential tenants, and we may be pressured to reduce our rental rates below those we currently charge in order to retain tenants when our tenants’ leases expire. As a result, our financial condition, cash flow, cash available for distribution, market price of our stock and ability to satisfy our debt service obligations could be materially adversely affected. In addition, increased competition for customers may require us to make capital improvements to facilities that we would not have otherwise made. Any unbudgeted capital improvements we undertake may reduce cash available for distributions to our shareholders.
We also face significant competition for acquisitions and development opportunities. Some of our competitors have greater financial resources than we do and a greater ability to borrow funds to acquire facilities. These competitors may also be willing and/or able to accept more risk than we can prudently manage, including risks with respect to the geographic proximity of investments and the payment of higher facility acquisition prices. This competition for investments may reduce the number of suitable investment opportunities available to us, may increase acquisition costs and may reduce demand for self-storage space in certain areas where our facilities are located and, as a result, adversely affect our operating results.
We face risks associated with facility acquisitions.
We have in the past acquired, and intend at some time in the future to acquire, individual and portfolios of self-storage facilities that would increase our size and potentially alter our capital structure. Although we believe that the acquisitions that we expect to undertake in the future will enhance our future financial performance, the success of such transactions is subject to a number of factors, including the risks that:
·we may not be able to obtain financing for acquisitions on favorable terms;
·acquisitions may fail to perform as expected;
·the actual costs of repositioning or redeveloping acquired facilities may be higher than our estimates;
·acquisitions may be located in new markets where we may have limited knowledge and understanding of the local economy, an absence of business relationships in the area or an unfamiliarity with local governmental and permitting procedures;
·there is only limited recourse, or no recourse, to the former owners of newly acquired facilities for unknown or undisclosed liabilities such as the clean-up of undisclosed environmental contamination; claims by tenants, vendors or other persons arising on account of actions or omissions of the former owners of the facilities; ordinary course of business expenses; and claims by local governments, adjoining property owners, property owner associations, and easement holders for fees, assessments, taxes on other property-related changes.
As a result, if a liability were asserted against us based upon ownership of an acquired facility, we might be required to pay significant sums to settle it, which could adversely affect our financial results and cash flow.
We will incur costs and will face integration challenges when we acquire additional facilities.
As we acquire or develop additional self-storage facilities, we will be subject to risks associated with integrating and managing new facilities, including customer retention and mortgage default risks. In the case of a large portfolio purchase, we could experience strains in our existing management information capacity. In addition, acquisitions or developments may cause disruptions in our operations and divert management’s attention away from day-to-day operations. Furthermore, our profitability may suffer because we will be required to expense acquisition-related costs and amortize in future periods costs for acquired goodwill and other intangible assets. Our failure to successfully integrate any future facilities into our portfolio could have an adverse effect on our operating costs and our ability to make distributions to our shareholders.
The acquisition of new facilities that lack operating history with us will give rise to difficulties in predicting revenue potential.
We intend to continue to acquire additional facilities. These acquisitions could fail to perform in accordance with expectations. If we fail to accurately estimate occupancy levels, operating costs or costs of improvements to bring an acquired facility up to the standards established for our intended market position, the performance of the facility may be below expectations. Acquired facilities may have characteristics or deficiencies affecting their valuation or revenue potential that we have not yet discovered. We cannot assure you that the performance of facilities acquired by us will increase or be maintained under our management.
Property ownership through joint ventures may limit our ability to act exclusively in our interest.
We have in the past, and may continue to, co-invest with third parties through joint ventures. In any such joint venture, we may not be in a position to exercise sole decision-making authority regarding the facilities owned through joint ventures.
Investments in joint ventures may, under certain circumstances, involve risks not present when a third party is not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their share of required capital contributions. Joint venture partners may have business interests or goals that are inconsistent with our business interests or goals and may be in a position to take actions contrary to our policies or objectives. Such investments also have the potential risk of impasse on strategic decisions, such as a sale, in cases where neither we nor the joint venture partner would have full control over the joint venture. In other circumstances, joint venture partners may have the ability without our agreement to make certain major decisions, including decisions about sales, capital expenditures and/or financing. Any disputes that may arise between us and our joint venture partners could result in litigation or arbitration that could increase our expenses and distract our officers and/or Trustees from focusing their time and effort on our business. In addition, we might in certain circumstances be liable for the actions of our joint venture partners, and the activities of a joint venture could adversely affect our ability to qualify as a REIT, even though we do not control the joint venture.
We face system security risks as we depend upon automated processes and the Internet.
We are increasingly dependent upon automated information technology processes. While we attempt to mitigate this risk through offsite backup procedures and contracted data centers that include, in some cases, redundant operations, we could still be severely impacted by a catastrophic occurrence, such as a natural disaster or a terrorist attack. In addition, an increasing portion of our business operations are conducted over the Internet, increasing the risk of viruses that could cause system failures and disruptions of operations despite our deployment of anti-virus measures. Experienced computer programmers may be able to penetrate our network security and misappropriate our confidential information, create system disruptions or cause shutdowns.
Potential liability for environmental contamination could result in substantial costs.
We are subject to federal, state and local environmental regulations that apply generally to the ownership of real property and the operation of self-storage facilities. If we fail to comply with those laws, we could be subject to significant fines or other governmental sanctions.
Under various federal, state and local laws, ordinances and regulations, an owner or operator of real estate may be required to investigate and clean up hazardous or toxic substances or petroleum product releases at a facility and may be held liable to a governmental entity or to third parties for property damage and for investigation and clean up costs incurred by such parties in connection with contamination. Such liability may be imposed whether or not the owner or operator knew of, or was responsible for, the presence of these hazardous or toxic substances. The cost of investigation, remediation or removal of such substances may be substantial, and the presence of such substances, or the failure to properly remediate such substances, may adversely affect the owner’s ability to sell or rent such facility or to borrow using such facility as collateral. In addition, in connection with the ownership, operation and management of real properties, we are potentially liable for property damage or injuries to persons and property.
Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional facilities. We obtain or examine environmental assessments from qualified and reputable environmental consulting firms (and intend to conduct such assessments prior to the acquisition or development of additional facilities). The environmental assessments received to date have not revealed, nor do we have actual knowledge of, any environmental liability that we believe will have a material adverse effect on us. However, we cannot assure you that any environmental assessments performed have identified or will identify all material environmental conditions, that any prior owner of any facility did not create a material environmental condition not actually known to us or that a material environmental condition does not otherwise exist with respect to any of our facilities.
Americans with Disabilities Act and applicable state accessibility act compliance may require unanticipated expenditures.
Under the Americans with Disabilities Act of 1990 and applicable state accessibility act laws (collectively, the “ADA”), all places of public accommodation are required to meet federal requirements related to physical access and use by disabled persons. A number of other federal, state and local laws may also impose access and other similar requirements at our facilities. A failure to comply with the ADA or similar state or local requirements could result in the governmental imposition of fines or the award of damages to private litigants affected by the noncompliance. Although we believe that our facilities comply in all material respects with these requirements (or would be eligible for applicable exemptions from material requirements because of adaptive assistance provided), a determination that one or more of our facilities is not in compliance with the ADA or similar state or local requirements would result in the incurrence of additional costs associated with
bringing the facilities into compliance. If we are required to make substantial modifications to comply with the ADA or similar state or local requirements, we may be required to incur significant unanticipated expenditures, which could have an adverse effect on our operating costs and our ability to make distributions to shareholdersour shareholders.
We may become subject to litigation or threatened litigation which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business.
We may become subject to disputes with commercial parties with whom we maintain relationships or other parties with whom we do business. Any such dispute could result in litigation between us and the other parties. Whether or not any dispute actually proceeds to litigation, we may be required to devote significant management time and attention to its successful resolution (through litigation, settlement or otherwise), which would notdetract from our management’s ability to focus on our business. Any such resolution could involve the payment of damages or expenses by us, which may be significant. In addition, any such resolution could involve our agreement with terms that restrict the operation of our business.
One type of commercial dispute could involve our use of our brand name and other intellectual property (for example, logos, signage and other marks), for which we generally have common law rights but no federal trademark registration. There are other commercial parties, at both a local and national level, that may assert that our use of our brand names and other intellectual property conflict with their rights to use brand names and other intellectual property that they consider to be similar to ours. Any such commercial dispute and related resolution would involve all of the risks described above, including, in particular, our agreement to restrict the use of our brand name or other intellectual property.
We also could be sued for personal injuries and/or property damage occurring on our properties. We maintain liability insurance with limits that we believe adequate to provide for the defense and/or payment of any damages arising from such lawsuits. There can be no assurance that such coverage will cover all costs and expenses from such suits.
deductible forFailure to qualify as a REIT would subject us to U.S. federal income tax purposes, and therefore we would be required to paycorporate income tax at applicable rates on our taxable income, which would substantiallyreduce our earnings and may substantially reduce the value ofcash available for distribution to our common shares andshareholders.adversely affect our ability to raise additional capital.
We have electedoperate our business to qualify to be taxed as a REIT for federal income tax purposes commencing with our first taxable year ending December 31, 2004, and we plan to continue to operate so that we can meet the requirements for qualification and taxation as a REIT.purposes. We have not requested and do not plan to request a ruling from the IRS that we qualify as a REIT, and the statements in this Annual Report on Form 10-K are not binding on the IRS or any court. As a REIT, we generally will not be subject to federal income tax on ourthe income that we distribute currently to our shareholders. Many of the REIT requirements, however, are highly technical and complex. The determination that we are a REIT requires an analysis of various factual matters and circumstances that may not be totally within our control. For example, to qualify as a REIT, at least 95% of our gross income must come from specific passive sources, such as rent, that are itemized in the REIT tax laws. In addition, to qualify as a REIT, we cannot own specified amounts of debt and equity securities of some issuers. We also are required to distribute to our shareholders with respect to each year at least 90% of our REIT taxable income (excluding net capital gains). The fact that we hold substantially all of our assets through the operating partnership and its subsidiaries further complicates the application of the REIT requirements for us. Even a technical or inadvertent mistake could jeopardize our REIT status and, given the highly complex nature of the rules governing REITs and the ongoing importance of factual determinations, we cannot provide any assurance that we will continue to qualify as a REIT. Furthermore, Congress and the IRS might make changes to the tax laws and regulations, and the courts might issue new rulings, that make it more difficult, or impossible, for us to remain qualified as a REIT. If we fail to qualify as a REIT for federal income tax purposes and are able to avail ourselves of one or more of the statutory savings provisions in order to maintain our REIT status, we would nevertheless be required to pay penalty taxes of $50,000 or more for each such failure.
If we fail to qualify as a REIT for federal income tax purposes, and are unable to avail ourselves of certain savings provisions set forth in the Internal Revenue Code, we would be subject to federal income tax at regular corporate rates on all of our income. As a taxable corporation, we would not be allowed to take a deduction for distributions to shareholders in computing our taxable income or pass through long term capital gains to individual shareholders at favorable rates. We also could be subject to the federal alternative minimum tax and possibly increased state and local taxes. We would not be able to elect to be taxed as a REIT for four years following the year we first failed to qualify unless the IRS were to grant us relief under certain statutory provisions. If we failed to qualify as a REIT, we would have to pay significant income taxes, which would reduce our net earnings available for investment or distribution to our shareholders. This likely would have a significant adverse effect on our earnings and likely would adversely affect the value of our securities. In addition, we would no longer be required to pay any distributions to shareholders.
To maintain our REIT status, we may be forced to borrow funds on a short term basis during unfavorable market conditions.
As a REIT, we are subject to certain distribution requirements, including the requirement to distribute 90% of our REIT taxable income that may result in our having to make distributions at disadvantageous time or to borrow funds at unfavorable rates. Compliance with this requirement may hinder our ability to operate solely on the basis of maximizing profits.
We will pay some taxes even if we qualify as a REIT.REIT, which will reduce the cash available for distribution to our shareholders.
Even if we qualify as a REIT for federal income tax purposes, we will be required to pay certain federal, state and local taxes on our income and property. For example, we will be subject to income tax to the extent we distribute less than 100% of our REIT taxable income, including capital gains. Additionally, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which dividends paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. Moreover, if we have net income from “prohibited transactions,” that income
will be subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. We cannot guarantee that sales of our properties would not be prohibited transactions unless we comply with certain statutory safe-harbor provisions. The need to avoid prohibited transactions could cause us to forego or defer sales of facilities that our predecessors otherwise would have sold or that might otherwise be in our best interest to sell.
In addition, any net taxable income earned directly by our taxable REIT subsidiaries, or through entities that are disregarded for federal income tax purposes as entities separate from our taxable REIT subsidiaries, will be subject to federal and possibly state corporate income tax. We have elected to treat U-Store-It Mini Warehouse Co. as a taxable REIT subsidiary, and we may elect to treat other subsidiaries as taxable REIT subsidiaries in the future. In this regard, several provisions of the laws applicable to REITs and their subsidiaries ensure that a taxable REIT subsidiary will be subject to an appropriate level of federal income taxation. For example, a taxable REIT subsidiary is limited in its ability to deduct certain interest payments made to an affiliated REIT. In addition, the REIT has to pay a 100% penalty tax on some payments that it receives or on some deductions taken by a taxable REIT subsidiary if the economic arrangements between the REIT, the REIT’s customers, and the taxable REIT subsidiary are not comparable to similar arrangements between unrelated parties. Finally, some state and local jurisdictions may tax some of our income even though as a REIT we are not subject to federal income tax on that income because not all states and localities follow the federal income tax treatment of REITs. To the extent that we and our affiliates are required to pay federal, state and local taxes, we will have less cash available for distributions to our shareholders.
We are dependent upon our key personnel whose continued service is not guaranteed.
Our top executives, Dean Jernigan, Christopher Marr Kathleen Weigand, Stephen Nichols and Timothy Martin, have extensive self-storage, real estate and public company experience. Although we have employment agreements with all of thethese members of our senior management team, we cannot provide any assurance that any of them will remain in our employ.employment. The loss of services of one or more members of our senior management team, particularly Dean Jernigan, our President and Chief Executive Officer, could adversely affect our operations and our future growth.
Privacy concerns could result in regulatory changes that may harm our business.
Personal privacy has become a significant issue in the jurisdictions in which we operate. Many jurisdictions in which we operate have imposed restrictions and requirements on the use of personal information by those collecting such information. Changes to law or regulations affecting privacy, if applicable to our business, could impose additional costs and liability on us and could limit our use and disclosure of such information.
We are dependent upon our on-site personnel to maximize customer satisfaction; any difficulties we encounter in hiring, training and retaining skilled field personnel may adversely affect our rental revenues.
As of December 31, 2006,2009, we had approximately 894808 field personnel involved in the management and operation of our facilities. The customer service, marketing skills and knowledge of local market demand and competitive dynamics of our facility managers are contributing factors to our ability to maximize our rental income and to achieve the highest sustainable rent levels at each of our facilities. We compete with various other companies in attracting and retaining qualified and skilled personnel.
Competitive pressures may require that we enhance our pay and benefits package to compete effectively for such personnel. If there is an increase in these costs or if we fail to attract and retain qualified and skilled personnel, our business and operating results could be harmed.
Our insurance coverage may not comply fully with certain loan requirements.
We maintain comprehensive insurance on each of our self-storage facilities in amounts sufficient to permit replacement of the property, subject to applicable deductibles. Certain of our properties serve as collateral for our mortgage-backed debt, some of which was assumed in connection with our acquisition of facilities, that requires us to maintain insurance at levels and on terms that are not commercially reasonable in the current insurance environment. We may be unable to obtain required insurance coverage if the cost and/or availability make it impractical or impossible to comply with debt covenants. If we cannot comply with a lender’s requirements in any respect, the lender could declare a default that could affect our ability to obtain future financing and could have a material adverse effect on our results of operations and cash flows and our ability to obtain future financing. In addition, we may be required to self-insure against certain losses or the Company’s insurance costs may increase.
Significant changes in personnel and systems could result in weaknesses in our internal controls over financial reporting.
During the third quarter of 2006, the Company terminated its relationship with its former Treasurer and the former Controller. Late in the second quarter of 2006, the Company hired a new Chief Financial Officer, Christopher P. Marr; during the third and fourth quarters hired a number of new accounting, operations and finance personnel and engaged consulting resources to supplement our existing finance organization; and in the fourth quarter of 2006 hired a new Chief Accounting Officer, Timothy M. Martin. In January
2007, the Company hired a new Chief Information Officer, Ajai Nair. Finally, the Company will be moving its Finance, Accounting and Information Technology departments to the Philadelphia area. We believe this represents a significant change with respect to the personnel responsible for the effectiveness of transaction processing and review activities in our control environment. Additional Finance, Accounting and Information Technology department personnel changes and oversight of processes are expected to continue through the first quarter of 2007.
In addition, during the third quarter of 2006 the Company completed its conversion to a new revenue management software system, Centershift® STORE TM , which provides the Company with an enhanced and automated rental management and point-of-sale software solution. This new system did not require customization by the Company or its vendor. Pre-implementation testing and post-implementation reviews were conducted by management to ensure that internal controls surrounding the system implementation process, the applications and the closing process were properly designed to prevent material financial statement errors.
Certain provisions of Maryland law could inhibit changes in control, which may discourage third parties from conducting a tender offer or seeking other change of control transactions that could involve a premium price for our shares or otherwise benefit our shareholders.
Certain provisions of Maryland law may have the effect of inhibiting a third party from making a proposal to acquire us or of impeding a change of control under circumstances that otherwise could provide the holders of our common shares with the opportunity to realize a premium over the then-prevailing market price of those shares, including:
· “business“business combination moratorium/fair price” provisions that, subject to limitations, prohibit certain business combinations between us and an “interested shareholder” (defined generally as any person who beneficially owns 10% or more of the voting power of our shares or an affiliate thereof) for five years after the most recent date on which the shareholder becomes an interested shareholder, and thereafter imposes stringent fair price and super-majority shareholder voting requirements on these combinations; and
· “control“control share” provisions that provide that “control shares” of our company (defined as shares which, when aggregated with other shares controlled by the shareholder, entitle the shareholder to exercise one of three increasing ranges of voting power in electing Trustees) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of “control shares” from a party other than the issuer) have no voting rights except to the extent approved by our shareholders by the affirmative vote of at least two thirds of all the votes entitled to be cast on the matter, excluding all interested shares, and are subject to redemption in certain circumstances.
We have opted out of these provisions of Maryland law. However, our Board of Trustees may opt to make these provisions applicable to us at any time.time without shareholder approval.
Our Trustees also have the discretion, granted in our bylaws and Maryland law, without shareholder approval to, among other things (1) create a staggered Board of Trustees, and (2) amend our bylaws or repeal individual bylaws in a manner that provides the Board of Trustees with greater authority. Any such action could inhibit or impede a third party from making a proposal to acquire us at a price that could be beneficial to our shareholders.
Robert J. Amsdell, our former Chairman and Chief Executive Officer; Barry L. Amsdell, a former Trustee; Todd C. Amsdell, our former Chief Operating Officer and former President of our development subsidiary; and the Amsdell Entities (collectively, “The Amsdell Family”) collectively own an approximate 16.6%13.96 % beneficial interest in our company on a fullydiluted basis and therefore have the ability to exercise significant influence on any matter presented to our shareholders.
The Amsdell Family collectively owns approximately 15.3%12.6% of our outstanding common shares, and an approximate 16.6%13.96% beneficial interest in our company on a fully diluted basis. Consequently, the Amsdell Family may be able to significantly influence the outcome of matters submitted for shareholder action, including the election of our Board of Trustees and approval of significant corporate transactions, including business combinations, consolidations and mergers. As a result, Robert J. Amsdell, Barry L. Amsdell and Todd C. Amsdell have substantial influence on us and could exercise their influence in a manner that conflicts with the interests of our other shareholders.
Robert J. Amsdell and Barry L. Amsdell have interests, through their ownership of limited partner unitsin our operating partnership and their ownership, through Rising Tide Development,of the option facilities, that may conflict with the interests of our othershareholders.
Robert J. Amsdell and Barry L. Amsdell own limited partner units in our operating partnership. These individuals may have personal interests that conflict with the interests of our shareholders with respect to business decisions affecting us and our operating
partnership, such as interests in the timing and pricing of facility sales or refinancings in order to obtain favorable tax treatment. As a result, the effect of certain transactions on these unitholders may influence our decisions affecting these facilities.
In addition, Robert J. Amsdell and Barry L. Amsdell own all of the equity interests in Rising Tide Development, which currently owns 14 of the option facilities and has the right to acquire an option facility from an unaffiliated third party. We have options to purchase these 15 option facilities from Rising Tide Development. As a result of their ownership interest in Rising Tide Development, Robert J. Amsdell and Barry L. Amsdell may have personal interests that conflict with the interests of our shareholders with respect to decisions affecting our exercise of our right to purchase any or all of the option facilities or our management of the option facilities. For example, it could be in the best interests of Rising Tide Development, at some time during the term of the option agreement, to seek our agreement to permit it to sell any or all of the option facilities to an outside third party rather than to our operating partnership. Under these circumstances, our interests would conflict with the fiduciary obligations of Robert J. Amsdell and Barry L. Amsdell as officers and directors of the entity that manages Rising Tide Development and their economic interests as the holders of the equity of Rising Tide Development. Although we expect that our decisions regarding our relationship with Rising Tide Development will be made by the independent members of our Board of Trustees, we cannot assure you that we will not be adversely affected by conflicts arising from Robert J. Amsdell and Barry L. Amsdell’s relationship with Rising Tide Development.
Our shareholders have limited control to prevent us from making any changes to our investment and financing policies.
Our Board of Trustees has adopted policies with respect to certain activities. These policies may be amended or revised from time to time at the discretion of our Board of Trustees without a vote of our shareholders. This means that our shareholders have limited control over changes in our policies. Such changes in our policies intended to improve, expand or diversify our business may not have the anticipated effects and consequently may adversely affect our business and prospects, results of operations and share price.
Our rights and the rights of our shareholders to take action against our Trustees and officers are limited.
Maryland law provides that a Trusteetrustee or officer has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in our best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. Our declaration of trust and bylaws require us to indemnify our Trustees and officers for actions taken by them in those capacities to the extent permitted by Maryland law. Accordingly, in the event that actions taken in good faith by any Trustee or officer impede our performance, our and our shareholders’ ability to recover damages from that Trustee or officer will be limited.
Many factors could have an adverse effect on the market value of our securities.
A number of factors might adversely affect the price of our securities, many of which are beyond our control. These factors include:
·increases in market interest rates, relative to the dividend yield on our shares. If market interest rates go up, prospective purchasers of our securities may require a higher yield. Higher market interest rates would not, however, result in more funds for us to distribute and, to the contrary, would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the market price of our common shares to go down;
·anticipated benefit of an investment in our securities as compared to investment in securities of companies in other industries (including benefits associated with tax treatment of dividends and distributions);
·perception by market professionals of REITs generally and REITs comparable to us in particular;
·level of institutional investor interest in our securities;
·relatively low trading volumes in securities of REITs;
·our results of operations and financial condition;
·investor confidence in the stock market generally; and
·additions and departures of key personnel.
The market value of our common shares is based primarily upon the market’s perception of our growth potential and our current and potential future earnings and cash distributions. Consequently, our common shares may trade at prices that are higher or lower than our net asset value per common share. If our future earnings or cash distributions are less than expected, it is likely that the market price of our common shares will diminish.
Additional issuances of equity securities may be dilutive to shareholders.
The interests of our shareholders could be diluted if we issue additional equity securities to finance future developments or acquisitions or to repay indebtedness. Our Board of Trustees may authorize the issuance of additional equity securities without shareholder approval. Our ability to execute our business strategy depends upon our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including the issuance of common and preferred equity.
Our declaration of trust permits our Board of Trustees to issue preferred shares with terms that may discourage third parties from conducting a tender offer or seeking other change of control transactions that could involve a premium price for our shares or otherwise benefit our shareholders.
Our declaration of trust permits our Board of Trustees to issue up to 40,000,000 preferred shares, having those preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications, or terms or conditions of redemption as determined by our Board. In addition, our boardBoard may reclassify any unissued common shares into one or more classes or series of preferred shares. Thus, our Board could authorize, without shareholder approval, the issuance of preferred shares with terms and conditions that could have the effect of discouraging a takeover or other transaction in which holders of some or a majority of our shares might receive a premium for their shares over the then-prevailing market price of our shares. We currently do not expect that the Board would require shareholder approval prior to such a preferred issuance. In addition, any preferred shares that we issue would rank senior to our common shares with respect to the payment of distributions, in which case we could not pay any distributions on our common shares until full distributions have been paid with respect to such preferred shares.
The acquisitionMany factors could have an adverse effect on the market value of new facilities that lack operating history with us will give rise to difficulties in predicting revenue potential.our securities.
We will continue to acquire additional facilities.
A number of factors might adversely affect the price of our securities, many of which are beyond our control. These acquisitions could fail to performfactors include:
·increases in accordance with expectations. If we fail to accurately estimate occupancy levels, operating costs or costs of improvements to bring an acquired facility upmarket interest rates, relative to the standards established fordividend yield on our intendedshares. If market position, the performance of the facility may be below expectations. Acquired facilities may have characteristics or deficiencies affecting their valuation or revenue potential that we have not yet discovered. We cannot assure you that the performance of facilities acquired by us will increase or be maintained under our management.
Our financial performance is dependent upon the economic and other conditions of the markets in which our facilities are located.
We are susceptible to adverse developments in the markets in which we operate, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors. Our facilities in Florida, California, Texas, Ohio, Tennessee, Illinois and Arizona accounted for approximately 16%, 15%, 10%, 8%, 7%, 6% and 5%, respectively,interest rates go up, prospective purchasers of our total rentable square feet as of December 31, 2006. Assecurities may require a higher yield. Higher market interest rates would not, however, result of this geographic concentrationin more funds for us to distribute and, to the contrary, would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the market price of our facilities, we are particularly susceptiblecommon shares to adverse market conditions in these areas. Any adverse economic or real estate developments in these markets, or in anygo down;
·anticipated benefit of the other markets in which we operate, or any decrease in demand for self-storage space resulting from the local business climate could adversely affect our rental revenues, which could impair our ability to satisfy our debt service obligations and pay distributions to our shareholders.
We identified material weaknessesan investment in our internal controls, which could affect our abilitysecurities as compared to ensure timelyinvestment in securities of companies in other industries (including benefits associated with tax treatment of dividends and reliable financial report,distributions);
·perception by market professionals of REITs generally and the abilityREITs comparable to us in particular;
·level of our auditor to attest to the effectiveness of our internal controls.
The design and effectiveness of our disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations. As part of management’s ongoing review of our accounting policies and internal control over financial reporting, on February 27, 2007, management determined that there were material weaknesses in the operating effectiveness of our internal control over financial reporting related to accounting errors that resulted in a misclassification of
marketable securities held at December 31, 2005 as cash and cash equivalents. These weaknesses led to the restatement in this Annual Report on Form 10-K of our results for the years ended December 31, 2005 and 2004 and each of the interim periods during 2006. This weakness had no impact on our previously reported results of operations. In connection with correcting this error, management has restated the prior period financial statements for additional historical errors related to cash and cash equivalents, marketable securities, restricted cash, distributions payable, rental revenues, workers compensation expense, loan procurement cost amortization and several other matters.
As previously reportedinstitutional investor interest in our Form 8-K filed on February 20, 2007, the Company conducted an inquiry into actions by Robert J. Amsdell, our former Chairman and Chief Executive Officer, and Todd C. Amsdell, our former Chief Operating Officer and former Presidentsecurities;
·relatively low trading volumes in securities of our development subsidiary, that the Company considered to be in violation of certain of their employee nonsolicitation obligations and in violation of their duty to act, in their positions with the Company, in the best interests of the Company and its shareholders. While this inquiry was limited to breach of employee nonsolicitation issues and breach of fiduciary duties, during the course of its investigation into these matters, counsel for the Company did not uncover any evidence of falsification of publicly reported financial information, or any instance in which individuals intentionally instructed the accounting department to record information in violation of GAAP.REITs;
Management believes that the historical misstatements were primarily the result of the prior management team lacking sufficient experience in public company accounting and periodic reporting matters. Over the last 11 months, the Company has undergone a complete turnover of its senior management team. During the first quarter of 2006, the Company’s former President and Chief Financial Officer resigned. During the third quarter of 2006, the Company terminated its relationship with its former Treasurer and Principal Accounting Officer and its former Controller and Compliance Officer. The Company’s former Chairman and Chief Executive Officer resigned as Chief Executive Officer on April 24, 2006 and retired as Chairman of the Board on February 13, 2007. The Company terminated its relationship with its former Chief Operating Officer and President of its development subsidiary effective as of February 19, 2007. Management believes it has taken appropriate actions to modify our system of internal control over financial reporting to address the material weakness by hiring a new Chief Executive Officer, Dean Jernigan; Senior Vice President of Operations, Stephen Nichols; Chief Financial Officer, Christopher P. Marr; Chief Accounting Officer, Timothy M. Martin; and additional accounting personnel that collectively have significant experience and expertise related to SEC reporting and leading public company accounting and finance functions. The Company will be moving its Finance, Accounting and Information Technology departments to the Philadelphia area and hiring a new finance and accounting staff. We believe this represents a significant change with respect to the personnel responsible for the effectiveness of transaction processing and review activities in our control environment. During the third quarter of 2006, the Company completed its conversion to a new revenue management software system, Centershift® STORE TM , which provides the Company with an enhanced and automated rental management and point-of-sale software solution. This new system did not require customization by the Company or its vendor. Pre-implementation testing and post-implementation reviews were conducted by management to ensure that internal controls surrounding the system implementation process, the applications and the closing process were properly designed to prevent material financial statement errors. In December 2006, the Company and its Board of Trustees completed a comprehensive strategic planning process. While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we cannot assure you that our disclosure controls and procedures or internal control over financial reporting will be effective in accomplishing all control objectives all of the time. Other deficiencies, particularly a material weakness in internal control over financial reporting that may occur in the future, could result in misstatements of
·our results of operations restatementsand financial condition;
·investor confidence in the stock market generally; and
·additions and departures of key personnel.
The market value of our financial statements,common shares is based primarily upon the market’s perception of our growth potential and our current and potential future earnings and cash distributions. Consequently, our common shares may trade at prices that are higher or lower than our net asset value per common share. If our future earnings or cash distributions are less than expected, it is likely that the market price of our common shares will diminish.
The market price of our common shares has been, and may continue to be, particularly volatile, and our shareholders may be unable to resell their shares at a declineprofit.
The market price of our common shares has been subject to significant fluctuations and may continue to fluctuate or decline. Since March 2009, our common stock has been particularly volatile as the price of our common stock has ranged from a high of $7.83 to a low of $1.34. In the past several years, REIT stocks have experienced high levels of volatility and significant declines in value from their historic highs. Additionally, as a result of the current global credit crisis and the concurrent economic downturn in the U.S. and globally, there have been significant declines in the values of equity securities generally in the U.S. and abroad.
In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. If our sharestock price or otherwise materially adversely affectis volatile, we may become the target of securities litigation. Securities litigation could result in substantial costs and divert our business, reputation, results of operation, financial condition or liquidity.management’s attention and resources from our business.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
Overview
As of December 31, 2006,2009, we owned 399367 self-storage facilities located in 2726 states and the District of Columbia; and aggregating approximately 25.423.7 million rentable square feet. The following table sets forth certain summary information regarding our facilities by state as of December 31, 2006.2009.
|
|
|
|
|
| Total |
| % of Total |
|
|
|
|
| Number of |
| Number of |
| Rentable |
| Rentable |
|
|
|
State |
| Facilities |
| Units |
| Square Feet |
| Square Feet |
| Occupancy |
|
California |
| 58 |
| 34,033 |
| 3,855,389 |
| 15.2 | % | 71.1 | % |
Florida |
| 55 |
| 36,071 |
| 3,975,581 |
| 15.6 | % | 83.1 | % |
Texas |
| 42 |
| 20,405 |
| 2,603,414 |
| 10.2 | % | 76.7 | % |
Ohio |
| 34 |
| 15,770 |
| 2,006,872 |
| 7.9 | % | 77.3 | % |
Illinois |
| 27 |
| 14,157 |
| 1,616,430 |
| 6.4 | % | 73.4 | % |
Arizona |
| 26 |
| 12,772 |
| 1,384,279 |
| 5.4 | % | 84.2 | % |
Tennessee |
| 24 |
| 12,543 |
| 1,689,183 |
| 6.6 | % | 83.3 | % |
Colorado |
| 20 |
| 10,561 |
| 1,208,292 |
| 4.8 | % | 80.4 | % |
Connecticut |
| 17 |
| 7,373 |
| 873,860 |
| 3.4 | % | 74.0 | % |
New Jersey |
| 15 |
| 10,295 |
| 1,011,407 |
| 4.0 | % | 74.5 | % |
New Mexico |
| 11 |
| 4,214 |
| 459,808 |
| 1.8 | % | 88.3 | % |
Indiana |
| 9 |
| 5,419 |
| 606,599 |
| 2.4 | % | 75.5 | % |
North Carolina |
| 8 |
| 4,743 |
| 555,779 |
| 2.2 | % | 84.4 | % |
Georgia |
| 6 |
| 4,276 |
| 515,252 |
| 2.0 | % | 72.7 | % |
Louisiana |
| 6 |
| 2,329 |
| 334,324 |
| 1.3 | % | 92.3 | % |
Mississippi |
| 6 |
| 2,743 |
| 350,260 |
| 1.4 | % | 87.5 | % |
New York |
| 6 |
| 3,195 |
| 335,300 |
| 1.3 | % | 78.5 | % |
Maryland |
| 5 |
| 4,097 |
| 505,808 |
| 2.0 | % | 78.0 | % |
Utah |
| 5 |
| 2,376 |
| 244,948 |
| 1.0 | % | 90.6 | % |
Michigan |
| 4 |
| 1,787 |
| 272,911 |
| 1.1 | % | 74.6 | % |
Alabama |
| 3 |
| 1,655 |
| 234,631 |
| 0.9 | % | 79.6 | % |
South Carolina |
| 3 |
| 1,281 |
| 214,113 |
| 0.8 | % | 75.3 | % |
Massachusetts |
| 2 |
| 1,134 |
| 115,541 |
| 0.5 | % | 68.0 | % |
Nevada |
| 2 |
| 815 |
| 98,585 |
| 0.4 | % | 68.4 | % |
Pennsylvania |
| 2 |
| 1,585 |
| 177,411 |
| 0.7 | % | 82.0 | % |
Virginia |
| 2 |
| 1,091 |
| 131,368 |
| 0.5 | % | 55.6 | % |
Wisconsin |
| 1 |
| 489 |
| 58,713 |
| 0.2 | % | 74.9 | % |
Total/Weighted Average |
| 399 |
| 217,209 |
| 25,436,058 |
| 100.0 | % | 78.2 | % |
|
|
|
|
|
| Total |
| % of Total |
| % of |
|
|
| Number of |
| Number of |
| Rentable |
| Rentable |
| Occupied |
|
State |
| Facilities |
| Units |
| Square Feet |
| Square Feet |
| Square Feet |
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
| 58 |
| 33,821 |
| 3,954,013 |
| 16.7 | % | 67.6 | % |
Florida |
| 51 |
| 36,094 |
| 3,795,690 |
| 16.0 | % | 75.5 | % |
Texas |
| 43 |
| 20,878 |
| 2,643,421 |
| 11.1 | % | 79.9 | % |
Ohio |
| 33 |
| 15,347 |
| 1,879,352 |
| 7.9 | % | 72.4 | % |
Illinois |
| 27 |
| 13,879 |
| 1,609,823 |
| 6.8 | % | 81.5 | % |
Tennessee |
| 24 |
| 12,855 |
| 1,682,687 |
| 7.1 | % | 76.0 | % |
Arizona |
| 24 |
| 11,713 |
| 1,246,619 |
| 5.3 | % | 75.3 | % |
Connecticut |
| 17 |
| 7,076 |
| 848,086 |
| 3.6 | % | 78.0 | % |
New Jersey |
| 13 |
| 9,004 |
| 876,505 |
| 3.7 | % | 74.1 | % |
Georgia |
| 9 |
| 6,092 |
| 759,215 |
| 3.2 | % | 76.3 | % |
Indiana |
| 9 |
| 5,171 |
| 592,742 |
| 2.5 | % | 71.3 | % |
New Mexico |
| 9 |
| 3,437 |
| 387,665 |
| 1.6 | % | 80.4 | % |
Colorado |
| 8 |
| 4,067 |
| 491,394 |
| 2.1 | % | 76.6 | % |
North Carolina |
| 8 |
| 4,756 |
| 557,721 |
| 2.4 | % | 76.0 | % |
Maryland |
| 5 |
| 4,191 |
| 517,782 |
| 2.2 | % | 83.0 | % |
New York |
| 5 |
| 2,871 |
| 311,883 |
| 1.3 | % | 77.7 | % |
Michigan |
| 4 |
| 1,885 |
| 270,869 |
| 1.1 | % | 70.7 | % |
Utah |
| 4 |
| 2,255 |
| 241,524 |
| 1.0 | % | 79.8 | % |
Louisiana |
| 3 |
| 1,423 |
| 195,267 |
| 0.8 | % | 81.0 | % |
Massachusetts |
| 3 |
| 1,784 |
| 173,413 |
| 0.7 | % | 75.1 | % |
Pennsylvania |
| 2 |
| 1,614 |
| 173,869 |
| 0.7 | % | 79.9 | % |
Virginia |
| 2 |
| 1,174 |
| 130,682 |
| 0.6 | % | 69.0 | % |
Nevada |
| 2 |
| 884 |
| 97,068 |
| 0.4 | % | 82.0 | % |
Alabama |
| 1 |
| 798 |
| 128,951 |
| 0.5 | % | 73.7 | % |
Washington, DC |
| 1 |
| 752 |
| 62,695 |
| 0.3 | % | 89.5 | % |
Mississippi |
| 1 |
| 509 |
| 61,251 |
| 0.2 | % | 77.7 | % |
Wisconsin |
| 1 |
| 485 |
| 58,515 |
| 0.2 | % | 76.4 | % |
Total/Weighted Average |
| 367 |
| 204,815 |
| 23,748,702 |
| 100.0 | % | 75.2 | % |
Our Facilities
The following table sets forth certain additional information with respect to each of our facilities as of December 31, 2006.2009. Our ownership of each facility consists of a fee interest in the facility held by U-Store-It, L.P., our operating partnership, or one of its subsidiaries, except for our Morris Township, NJ facility, where we have a ground lease. In addition, small parcels of land at five of our other facilities are subject to ground leases.
|
| Year |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Mobile I, AL † |
| 1997 |
| 1987 |
| 65,256 |
| 88.2 | % | 490 |
| N |
| 7.4 | % |
Mobile II, AL † |
| 1997 |
| 1974/90 |
| 126,050 |
| 71.8 | % | 794 |
| N |
| 1.3 | % |
Mobile III, AL |
| 1998 |
| 1988/94 |
| 43,325 |
| 89.4 | % | 371 |
| Y |
| 33.8 | % |
Chandler, AZ |
| 2005 |
| 1985 |
| 47,888 |
| 91.2 | % | 520 |
| Y |
| 0.0 | % |
Glendale, AZ |
| 1998 |
| 1987 |
| 56,580 |
| 86.5 | % | 575 |
| Y |
| 0.0 | % |
Green Valley, AZ |
| 2005 |
| 1985 |
| 25,400 |
| 73.1 | % | 280 |
| N |
| 8.0 | % |
Mesa I, AZ |
| 2006 |
| 1985 |
| 52,575 |
| 85.5 | % | 476 |
| N |
| 0.0 | % |
Mesa II, AZ |
| 2006 |
| 1981 |
| 45,385 |
| 81.1 | % | 435 |
| Y |
| 12.0 | % |
Mesa III, AZ |
| 2006 |
| 1986 |
| 59,942 |
| 66.7 | % | 537 |
| Y |
| 10.1 | % |
Phoenix I, AZ |
| 2006 |
| 1987 |
| 101,087 |
| 68.7 | % | 798 |
| Y |
| 13.2 | % |
Phoenix II, AZ |
| 2006 |
| 1974 |
| 45,470 |
| 74.5 | % | 440 |
| Y |
| 0.0 | % |
Scottsdale, AZ |
| 1998 |
| 1995 |
| 81,300 |
| 97.5 | % | 608 |
| Y |
| 10.9 | % |
Tempe, AZ |
| 2005 |
| 1975 |
| 53,525 |
| 91.7 | % | 408 |
| Y |
| 14.0 | % |
Tucson I, AZ |
| 1998 |
| 1974 |
| 60,000 |
| 86.9 | % | 504 |
| Y |
| 0.0 | % |
Tucson II, AZ |
| 1998 |
| 1988 |
| 44,150 |
| 88.7 | % | 536 |
| Y |
| 100.0 | % |
Tucson III, AZ |
| 2005 |
| 1979 |
| 49,858 |
| 82.0 | % | 579 |
| N |
| 0.0 | % |
Tucson IV, AZ |
| 2005 |
| 1982 |
| 48,372 |
| 87.7 | % | 553 |
| Y |
| 0.0 | % |
Tucson IX, AZ |
| 2005 |
| 1984 |
| 68,866 |
| 85.5 | % | 662 |
| Y |
| 0.0 | % |
Tucson V, AZ |
| 2005 |
| 1982 |
| 45,428 |
| 80.1 | % | 467 |
| Y |
| 0.0 | % |
Tucson VI, AZ |
| 2005 |
| 1982 |
| 41,028 |
| 88.9 | % | 457 |
| Y |
| 0.0 | % |
Tucson VII, AZ |
| 2005 |
| 1982 |
| 52,838 |
| 84.5 | % | 640 |
| Y |
| 0.0 | % |
Tucson VIII, AZ |
| 2005 |
| 1979 |
| 46,850 |
| 82.7 | % | 525 |
| Y |
| 0.0 | % |
Tucson X, AZ |
| 2005 |
| 1981 |
| 46,550 |
| 82.0 | % | 496 |
| N |
| 0.0 | % |
Tucson XI, AZ |
| 2005 |
| 1974 |
| 43,100 |
| 89.0 | % | 471 |
| Y |
| 0.0 | % |
Tucson XII, AZ |
| 2005 |
| 1974 |
| 42,772 |
| 79.5 | % | 516 |
| N |
| 0.0 | % |
Tucson XIII, AZ |
| 2005 |
| 1974 |
| 46,192 |
| 93.3 | % | 591 |
| Y |
| 0.0 | % |
Tucson XIV, AZ |
| 2005 |
| 1976 |
| 49,595 |
| 90.0 | % | 590 |
| Y |
| 9.0 | % |
Tucson XV, AZ † |
| 2005 |
| 1985 |
| 66,510 |
| 96.6 | % | 62 |
| N |
| 0.0 | % |
Tucson XVI, AZ † |
| 2005 |
| 1984 |
| 63,018 |
| 76.2 | % | 46 |
| N |
| 0.0 | % |
Apple Valley I, CA |
| 1997 |
| 1984 |
| 73,580 |
| 55.8 | % | 620 |
| Y |
| 0.0 | % |
Apple Valley II, CA |
| 1997 |
| 1988 |
| 62,325 |
| 72.5 | % | 511 |
| Y |
| 5.3 | % |
Benicia, CA |
| 2005 |
| 1988/93/05 |
| 75,040 |
| 81.9 | % | 612 |
| Y |
| 0.0 | % |
Bloomington I, CA |
| 1997 |
| 1987 |
| 31,246 |
| 62.2 | % | 226 |
| N |
| 0.0 | % |
Bloomington II, CA † |
| 1997 |
| 1987 |
| 26,060 |
| 100.0 | % | 22 |
| N |
| 0.0 | % |
Cathedral City, CA † |
| 2006 |
| 1982/92 |
| 129,669 |
| 62.0 | % | 1041 |
| Y |
| 2.5 | % |
Citrus Heights, CA |
| 2005 |
| 1987 |
| 75,906 |
| 62.7 | % | 696 |
| Y |
| 0.0 | % |
Diamond Bar, CA |
| 2005 |
| 1988 |
| 105,685 |
| 83.7 | % | 919 |
| Y |
| 0.0 | % |
Fallbrook, CA |
| 1997 |
| 1985/88 |
| 46,534 |
| 78.9 | % | 430 |
| Y |
| 0.0 | % |
Hemet, CA |
| 1997 |
| 1989 |
| 66,260 |
| 88.5 | % | 454 |
| Y |
| 0.0 | % |
Highland II, CA |
| 2006 |
| 1982 |
| 61,935 |
| 76.3 | % | 549 |
| Y |
| 0.0 | % |
Highland, CA |
| 1997 |
| 1987 |
| 74,951 |
| 67.1 | % | 848 |
| Y |
| 0.0 | % |
Lancaster, CA |
| 2001 |
| 1987 |
| 60,875 |
| 63.4 | % | 416 |
| Y |
| 0.0 | % |
Long Beach, CA |
| 2006 |
| 1974 |
| 122,519 |
| 71.4 | % | 1420 |
| Y |
| 0.0 | % |
Murrieta, CA |
| 2005 |
| 1996 |
| 50,309 |
| 61.4 | % | 492 |
| Y |
| 0.0 | % |
North Highlands, CA |
| 2005 |
| 1980 |
| 57,219 |
| 80.7 | % | 497 |
| Y |
| 0.0 | % |
Ontario, CA |
| 1998 |
| 1982 |
| 80,280 |
| 68.0 | % | 840 |
| Y |
| 0.0 | % |
Orangevale, CA |
| 2005 |
| 1980 |
| 50,892 |
| 79.3 | % | 580 |
| Y |
| 0.0 | % |
Palm Springs I, CA |
| 2006 |
| 1989 |
| 72,975 |
| 86.2 | % | 578 |
| Y |
| 0.0 | % |
Palm Springs II, CA † |
| 2006 |
| 1982/89 |
| 122,097 |
| 77.9 | % | 639 |
| Y |
| 22.5 | % |
Pleasanton, CA |
| 2005 |
| 2003 |
| 83,676 |
| 69.1 | % | 639 |
| Y |
| 0.0 | % |
Rancho Cordova, CA |
| 2005 |
| 1979 |
| 54,128 |
| 84.6 | % | 486 |
| Y |
| 0.0 | % |
Redlands, CA |
| 1997 |
| 1985 |
| 63,005 |
| 75.1 | % | 563 |
| N |
| 0.0 | % |
Rialto II, CA |
| 2006 |
| 1980 |
| 57,575 |
| 68.1 | % | 526 |
| Y |
| 0.0 | % |
Rialto, CA |
| 1997 |
| 1987 |
| 100,083 |
| 62.2 | % | 808 |
| Y |
| 0.0 | % |
Riverside I, CA |
| 1997 |
| 1989 |
| 28,860 |
| 64.8 | % | 249 |
| N |
| 0.0 | % |
Riverside II, CA † |
| 1997 |
| 1989 |
| 21,880 |
| 100.0 | % | 20 |
| N |
| 0.0 | % |
Riverside III, CA |
| 1998 |
| 1989 |
| 46,920 |
| 79.7 | % | 384 |
| Y |
| 0.0 | % |
Riverside IV, CA |
| 2006 |
| 1977 |
| 67,520 |
| 65.4 | % | 648 |
| Y |
| 0.0 | % |
Riverside V, CA |
| 2006 |
| 1985 |
| 86,701 |
| 63.8 | % | 715 |
| Y |
| 0.0 | % |
Roseville, CA |
| 2005 |
| 1979 |
| 60,144 |
| 87.1 | % | 594 |
| Y |
| 0.0 | % |
Sacramento I, CA |
| 2005 |
| 1979 |
| 56,724 |
| 88.6 | % | 565 |
| Y |
| 0.0 | % |
Sacramento II, CA |
| 2005 |
| 1986 |
| 62,090 |
| 68.1 | % | 585 |
| Y |
| 0.0 | % |
San Bernardino I, CA |
| 1997 |
| 1985 |
| 46,600 |
| 53.2 | % | 453 |
| Y |
| 5.3 | % |
San Bernardino II, CA |
| 1997 |
| 1987 |
| 83,418 |
| 61.4 | % | 625 |
| Y |
| 2.0 | % |
San Bernardino III, CA |
| 1997 |
| 1987 |
| 32,102 |
| 75.3 | % | 246 |
| N |
| 0.0 | % |
San Bernardino IV, CA |
| 1997 |
| 1989 |
| 57,400 |
| 70.4 | % | 591 |
| Y |
| 0.0 | % |
San Bernardino IX, CA |
| 2006 |
| 1975 |
| 121,563 |
| 46.9 | % | 1009 |
| Y |
| 0.0 | % |
San Bernardino V, CA |
| 1997 |
| 1991 |
| 41,781 |
| 78.8 | % | 408 |
| Y |
| 0.0 | % |
San Bernardino VI, CA |
| 1997 |
| 1985/92 |
| 35,007 |
| 68.9 | % | 413 |
| N |
| 0.0 | % |
San Bernardino VII, CA |
| 2005 |
| 2002/04 |
| 83,756 |
| 81.7 | % | 636 |
| Y |
| 11.8 | % |
San Bernardino VIII, CA |
| 2006 |
| 1974 |
| 56,351 |
| 59.1 | % | 406 |
| Y |
| 0.0 | % |
San Bernardino X, CA |
| 2006 |
| 1978 |
| 79,595 |
| 64.0 | % | 693 |
| Y |
| 0.0 | % |
San Bernardino XI, CA |
| 2006 |
| 1977 |
| 111,994 |
| 55.5 | % | 1044 |
| Y |
| 0.0 | % |
San Marcos, CA |
| 2005 |
| 1979 |
| 37,620 |
| 90.1 | % | 252 |
| Y |
| 0.0 | % |
Santa Ana, CA |
| 2006 |
| 1984 |
| 65,836 |
| 65.6 | % | 743 |
| Y |
| 0.0 | % |
South Sacramento, CA |
| 2005 |
| 1979 |
| 51,890 |
| 57.9 | % | 435 |
| Y |
| 0.0 | % |
Spring Valley, CA |
| 2006 |
| 1980 |
| 55,128 |
| 51.3 | % | 731 |
| Y |
| 0.0 | % |
Sun City, CA |
| 1998 |
| 1989 |
| 38,635 |
| 71.9 | % | 305 |
| N |
| 0.0 | % |
Temecula I, CA |
| 1998 |
| 1985 |
| 39,725 |
| 73.6 | % | 316 |
| N |
| 0.0 | % |
Temecula II, CA |
| 2003* |
| 2003 |
| 42,475 |
| 71.2 | % | 392 |
| Y |
| 89.5 | % |
Thousand Palms, CA |
| 2006 |
| 1988/01 |
| 76,532 |
| 64.8 | % | 861 |
| Y |
| 37.4 | % |
Vista I, CA |
| 2001 |
| 1988 |
| 74,781 |
| 85.5 | % | 614 |
| Y |
| 0.0 | % |
Vista II, CA |
| 2005 |
| 2001/02/03 |
| 147,991 |
| 78.1 | % | 1330 |
| Y |
| 3.6 | % |
Walnut, CA |
| 2005 |
| 1987 |
| 50,934 |
| 80.3 | % | 541 |
| Y |
| 0.0 | % |
West Sacramento, CA |
| 2005 |
| 1984 |
| 39,955 |
| 79.8 | % | 487 |
| Y |
| 0.0 | % |
Westminster, CA |
| 2005 |
| 1983/98 |
| 70,213 |
| 90.1 | % | 650 |
| Y |
| 0.0 | % |
Yucaipa, CA |
| 1997 |
| 1989 |
| 78,444 |
| 62.2 | % | 680 |
| Y |
| 0.0 | % |
Aurora I, CO |
| 2005 |
| 1981 |
| 74,817 |
| 69.8 | % | 641 |
| Y |
| 0.0 | % |
Aurora II, CO |
| 2005 |
| 1984 |
| 57,454 |
| 74.6 | % | 514 |
| Y |
| 0.0 | % |
Aurora III, CO |
| 2005 |
| 1977 |
| 33,410 |
| 81.6 | % | 317 |
| Y |
| 0.0 | % |
Aurora IV, CO |
| 2006 |
| 1998/99 |
| 49,900 |
| 82.9 | % | 363 |
| Y |
| 0.0 | % |
Avon, CO |
| 2005 |
| 1989 |
| 28,175 |
| 91.7 | % | 397 |
| Y |
| 0.0 | % |
Boulder I, CO |
| 2006 |
| 1972/75/77 |
| 47,620 |
| 84.6 | % | 527 |
| Y |
| 0.0 | % |
Boulder II, CO |
| 2006 |
| 1983/84 |
| 102,995 |
| 80.8 | % | 1090 |
| Y |
| 0.0 | % |
Boulder III, CO |
| 2006 |
| 1974/78 |
| 80,414 |
| 78.1 | % | 783 |
| Y |
| 0.0 | % |
Boulder IV, CO |
| 2006 |
| 1983/98 |
| 95,348 |
| 87.9 | % | 714 |
| Y |
| 14.7 | % |
Colorado Springs, CO |
| 2005 |
| 1986 |
| 48,005 |
| 76.5 | % | 513 |
| Y |
| 0.0 | % |
Colorado Springs II, CO |
| 2006 |
| 2001 |
| 62,600 |
| 95.9 | % | 435 |
| Y |
| 0.0 | % |
Denver II, CO |
| 2006 |
| 1997 |
| 59,400 |
| 70.0 | % | 437 |
| Y |
| 0.0 | % |
Denver III, CO |
| 2006 |
| 1999 |
| 63,600 |
| 74.2 | % | 459 |
| Y |
| 0.0 | % |
Denver, CO |
| 2005 |
| 1987 |
| 57,145 |
| 70.6 | % | 453 |
| Y |
| 0.0 | % |
Englewood, CO |
| 2005 |
| 1981 |
| 51,230 |
| 83.0 | % | 372 |
| Y |
| 0.0 | % |
Federal Heights, CO |
| 2005 |
| 1980 |
| 55,080 |
| 79.1 | % | 576 |
| Y |
| 0.0 | % |
Golden, CO |
| 2005 |
| 1985 |
| 88,792 |
| 81.1 | % | 648 |
| Y |
| 0.0 | % |
Littleton I , CO |
| 2005 |
| 1987 |
| 53,690 |
| 80.1 | % | 457 |
| Y |
| 38.0 | % |
Littleton II, CO |
| 2005 |
| 1982 |
| 46,315 |
| 92.9 | % | 365 |
| Y |
| 0.0 | % |
Northglenn, CO |
| 2005 |
| 1980 |
| 52,302 |
| 80.6 | % | 500 |
| Y |
| 0.0 | % |
Bloomfield, CT |
| 1997 |
| 1987/93/94 |
| 48,900 |
| 56.9 | % | 455 |
| Y |
| 6.6 | % |
Branford, CT |
| 1995 |
| 1986 |
| 51,079 |
| 91.7 | % | 438 |
| Y |
| 2.2 | % |
Bristol, CT |
| 2005 |
| 1989/99 |
| 53,625 |
| 85.0 | % | 504 |
| N |
| 22.4 | % |
East Windsor, CT |
| 2005 |
| 1986/89 |
| 46,100 |
| 66.4 | % | 326 |
| N |
| 0.0 | % |
Enfield, CT |
| 2001 |
| 1989 |
| 52,975 |
| 74.4 | % | 384 |
| Y |
| 0.0 | % |
Gales Ferry, CT |
| 1995 |
| 1987/89 |
| 51,780 |
| 63.4 | % | 592 |
| N |
| 4.8 | % |
Manchester I, CT (6) |
| 2002 |
| 1999/00/01 |
| 47,400 |
| 62.1 | % | 519 |
| N |
| 37.0 | % |
Manchester II, CT |
| 2005 |
| 1984 |
| 53,237 |
| 77.9 | % | 419 |
| N |
| 0.0 | % |
Milford, CT |
| 1994 |
| 1975 |
| 45,181 |
| 80.6 | % | 388 |
| N |
| 3.1 | % |
Monroe, CT |
| 2005 |
| 1996/03 |
| 66,909 |
| 83.5 | % | 411 |
| N |
| 0.0 | % |
Mystic, CT |
| 1994 |
| 1975/86 |
| 50,250 |
| 70.3 | % | 551 |
| Y |
| 2.4 | % |
Newington I, CT † |
| 2005 |
| 1978/97 |
| 54,920 |
| 76.6 | % | 264 |
| N |
| 0.0 | % |
Newington II, CT |
| 2005 |
| 1979/81 |
| 36,490 |
| 83.7 | % | 222 |
| N |
| 0.0 | % |
Old Saybrook II, CT |
| 2005 |
| 1988/02 |
| 26,875 |
| 78.8 | % | 256 |
| N |
| 30.0 | % |
Old Saybrook, CT |
| 2005 |
| 1982/88/00 |
| 91,288 |
| 70.1 | % | 725 |
| N |
| 6.3 | % |
South Windsor, CT |
| 1994 |
| 1976 |
| 67,525 |
| 59.4 | % | 550 |
| Y |
| 0.8 | % |
Stamford, CT |
| 2005 |
| 1997 |
| 29,326 |
| 91.7 | % | 369 |
| N |
| 31.2 | % |
Boca Raton, FL |
| 2001 |
| 1998 |
| 38,203 |
| 93.4 | % | 605 |
| N |
| 67.9 | % |
Boynton Beach I, FL |
| 2001 |
| 1999 |
| 62,042 |
| 89.5 | % | 800 |
| Y |
| 54.0 | % |
Boynton Beach II, FL |
| 2005 |
| 2001 |
| 62,276 |
| 82.6 | % | 609 |
| Y |
| 81.5 | % |
Bradenton I, FL |
| 2004 |
| 1979 |
| 68,480 |
| 65.8 | % | 676 |
| N |
| 2.8 | % |
Bradenton II, FL |
| 2004 |
| 1996 |
| 88,103 |
| 86.5 | % | 904 |
| Y |
| 40.2 | % |
Cape Coral, FL |
| 2000* |
| 2000 |
| 76,789 |
| 88.3 | % | 902 |
| Y |
| 83.0 | % |
Dania Beach, FL (6) |
| 2004 |
| 1984 |
| 264,375 |
| 83.5 | % | 1928 |
| N |
| 21.0 | % |
Dania, FL |
| 1994 |
| 1988 |
| 58,319 |
| 97.6 | % | 483 |
| Y |
| 26.9 | % |
Davie, FL |
| 2001* |
| 2001 |
| 81,235 |
| 80.8 | % | 839 |
| Y |
| 55.6 | % |
Deerfield Beach, FL |
| 1998* |
| 1998 |
| 57,770 |
| 83.0 | % | 527 |
| Y |
| 39.2 | % |
DeLand, FL |
| 1998 |
| 1987 |
| 38,577 |
| 89.3 | % | 412 |
| Y |
| 0.0 | % |
Delray Beach, FL |
| 2001 |
| 1999 |
| 68,531 |
| 91.5 | % | 819 |
| Y |
| 39.0 | % |
Fernandina Beach, FL † |
| 1996 |
| 1986 |
| 91,480 |
| 96.4 | % | 683 |
| Y |
| 21.7 | % |
Ft. Lauderdale, FL |
| 1999 |
| 1999 |
| 70,544 |
| 97.0 | % | 655 |
| Y |
| 46.0 | % |
Ft. Myers, FL |
| 1998 |
| 1998 |
| 67,256 |
| 81.7 | % | 611 |
| Y |
| 67.0 | % |
Gulf Breeze, FL |
| 2005 |
| 1982/04 |
| 79,455 |
| 90.8 | % | 701 |
| N |
| 64.0 | % |
Jacksonville, FL |
| 2005 |
| 2005 |
| 79,366 |
| 46.5 | % | 761 |
| N |
| 100.0 | % |
Lake Worth, FL † |
| 1998 |
| 1998/02 |
| 167,946 |
| 85.5 | % | 1293 |
| N |
| 44.9 | % |
Lakeland I, FL |
| 1994 |
| 1988 |
| 49,111 |
| 85.9 | % | 463 |
| Y |
| 78.1 | % |
Lakeland II, FL |
| 1996 |
| 1984 |
| 48,600 |
| 79.4 | % | 356 |
| Y |
| 19.5 | % |
Leesburg, FL |
| 1997 |
| 1988 |
| 51,995 |
| 84.3 | % | 447 |
| Y |
| 5.1 | % |
|
| Year Acquired/ |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Mobile, AL † |
| 1997 |
| 1974/90 |
| 128,951 |
| 73.7 | % | 798 |
| Y |
| 1.6 | % |
Chandler, AZ |
| 2005 |
| 1985 |
| 47,520 |
| 81.7 | % | 439 |
| Y |
| 6.9 | % |
Glendale, AZ |
| 1998 |
| 1987 |
| 56,850 |
| 76.5 | % | 529 |
| Y |
| 0.0 | % |
Green Valley, AZ |
| 2005 |
| 1985 |
| 25,050 |
| 68.9 | % | 257 |
| N |
| 8.0 | % |
Mesa I, AZ |
| 2006 |
| 1985 |
| 52,375 |
| 80.5 | % | 495 |
| N |
| 0.0 | % |
Mesa II, AZ |
| 2006 |
| 1981 |
| 45,145 |
| 78.0 | % | 389 |
| Y |
| 8.4 | % |
Mesa III, AZ |
| 2006 |
| 1986 |
| 58,264 |
| 68.1 | % | 482 |
| Y |
| 4.5 | % |
Phoenix I, AZ |
| 2006 |
| 1987 |
| 100,762 |
| 66.4 | % | 757 |
| Y |
| 8.7 | % |
Phoenix II, AZ |
| 2006 |
| 1974 |
| 45,270 |
| 85.3 | % | 409 |
| Y |
| 4.7 | % |
Scottsdale, AZ |
| 1998 |
| 1995 |
| 80,925 |
| 79.9 | % | 635 |
| Y |
| 9.5 | % |
Tempe, AZ |
| 2005 |
| 1975 |
| 53,890 |
| 72.9 | % | 403 |
| Y |
| 13.0 | % |
Tucson I, AZ |
| 1998 |
| 1974 |
| 59,350 |
| 74.6 | % | 491 |
| Y |
| 0.0 | % |
Tucson II, AZ |
| 1998 |
| 1988 |
| 43,950 |
| 76.6 | % | 525 |
| Y |
| 100.0 | % |
Tucson III, AZ |
| 2005 |
| 1979 |
| 49,822 |
| 68.6 | % | 494 |
| N |
| 0.0 | % |
Tucson IV, AZ |
| 2005 |
| 1982 |
| 48,040 |
| 81.1 | % | 508 |
| Y |
| 3.7 | % |
Tucson V, AZ |
| 2005 |
| 1982 |
| 45,234 |
| 69.4 | % | 419 |
| Y |
| 3.0 | % |
Tucson VI, AZ |
| 2005 |
| 1982 |
| 40,841 |
| 69.4 | % | 417 |
| Y |
| 3.4 | % |
Tucson VII, AZ |
| 2005 |
| 1982 |
| 52,688 |
| 75.7 | % | 605 |
| Y |
| 2.0 | % |
Tucson VIII, AZ |
| 2005 |
| 1979 |
| 46,650 |
| 73.9 | % | 466 |
| Y |
| 0.0 | % |
Tucson IX, AZ |
| 2005 |
| 1984 |
| 67,656 |
| 73.9 | % | 610 |
| Y |
| 2.0 | % |
Tucson X, AZ |
| 2005 |
| 1981 |
| 46,350 |
| 72.5 | % | 430 |
| N |
| 0.0 | % |
Tucson XI, AZ |
| 2005 |
| 1974 |
| 42,700 |
| 75.4 | % | 433 |
| Y |
| 0.0 | % |
Tucson XII, AZ |
| 2005 |
| 1974 |
| 42,325 |
| 83.7 | % | 437 |
| Y |
| 4.8 | % |
Tucson XIII, AZ |
| 2005 |
| 1974 |
| 45,792 |
| 75.4 | % | 522 |
| Y |
| 0.0 | % |
Tucson XIV, AZ |
| 2005 |
| 1976 |
| 49,170 |
| 85.8 | % | 561 |
| Y |
| 8.8 | % |
Apple Valley I, CA |
| 1997 |
| 1984 |
| 73,250 |
| 48.1 | % | 552 |
| N |
| 0.0 | % |
Apple Valley II, CA |
| 1997 |
| 1988 |
| 61,555 |
| 67.3 | % | 471 |
| Y |
| 5.9 | % |
Benicia, CA |
| 2005 |
| 1988/93/05 |
| 74,770 |
| 83.8 | % | 734 |
| Y |
| 0.0 | % |
Bloomington I, CA |
| 1997 |
| 1987 |
| 28,425 |
| 67.0 | % | 216 |
| N |
| 0.0 | % |
Bloomington II, CA † |
| 1997 |
| 1987 |
| 25,860 |
| 67.4 | % | 20 |
| N |
| 0.0 | % |
Cathedral City, CA † |
| 2006 |
| 1982/92 |
| 109,745 |
| 59.4 | % | 708 |
| Y |
| 2.3 | % |
Citrus Heights, CA |
| 2005 |
| 1987 |
| 75,620 |
| 60.6 | % | 658 |
| Y |
| 0.0 | % |
Diamond Bar, CA |
| 2005 |
| 1988 |
| 103,034 |
| 81.1 | % | 898 |
| Y |
| 0.0 | % |
Escondido, CA |
| 2007 |
| 2002 |
| 142,970 |
| 74.5 | % | 1226 |
| Y |
| 6.6 | % |
Fallbrook, CA |
| 1997 |
| 1985/88 |
| 46,370 |
| 88.6 | % | 446 |
| Y |
| 0.0 | % |
Hemet, CA |
| 1997 |
| 1989 |
| 66,040 |
| 66.1 | % | 433 |
| Y |
| 0.0 | % |
Highland I, CA |
| 1997 |
| 1987 |
| 76,765 |
| 52.3 | % | 841 |
| Y |
| 0.0 | % |
Highland II, CA |
| 2006 |
| 1982 |
| 62,257 |
| 57.8 | % | 519 |
| Y |
| 1.0 | % |
Lancaster, CA |
| 2001 |
| 1987 |
| 60,665 |
| 42.7 | % | 385 |
| Y |
| 0.0 | % |
Long Beach, CA |
| 2006 |
| 1974 |
| 124,363 |
| 60.7 | % | 1349 |
| Y |
| 0.0 | % |
Murrieta, CA |
| 2005 |
| 1996 |
| 49,790 |
| 81.7 | % | 426 |
| Y |
| 2.9 | % |
North Highlands, CA |
| 2005 |
| 1980 |
| 57,244 |
| 84.0 | % | 471 |
| N |
| 0.0 | % |
Orangevale, CA |
| 2005 |
| 1980 |
| 51,142 |
| 70.5 | % | 523 |
| Y |
| 0.0 | % |
Palm Springs I, CA |
| 2006 |
| 1989 |
| 72,675 |
| 59.4 | % | 570 |
| Y |
| 0.0 | % |
Palm Springs II, CA † |
| 2006 |
| 1982/89 |
| 122,370 |
| 61.6 | % | 626 |
| Y |
| 8.7 | % |
Pleasanton, CA |
| 2005 |
| 2003 |
| 85,195 |
| 81.2 | % | 693 |
| Y |
| 0.0 | % |
Rancho Cordova, CA |
| 2005 |
| 1979 |
| 53,928 |
| 64.7 | % | 460 |
| Y |
| 0.0 | % |
Redlands, CA |
| 1997 |
| 1985 |
| 62,805 |
| 64.8 | % | 538 |
| N |
| 0.0 | % |
Rialto I, CA |
| 1997 |
| 1987 |
| 57,371 |
| 68.8 | % | 497 |
| Y |
| 0.0 | % |
Rialto II, CA |
| 2006 |
| 1980 |
| 99,783 |
| 74.3 | % | 749 |
| Y |
| 0.0 | % |
Riverside I, CA |
| 1997 |
| 1989 |
| 28,310 |
| 76.8 | % | 226 |
| N |
| 0.0 | % |
Riverside II, CA † |
| 1997 |
| 1989 |
| 20,420 |
| 67.6 | % | 18 |
| N |
| 0.0 | % |
Riverside III, CA |
| 1998 |
| 1989 |
| 46,809 |
| 66.0 | % | 429 |
| Y |
| 0.0 | % |
Riverside IV, CA |
| 2006 |
| 1977 |
| 67,220 |
| 76.7 | % | 663 |
| Y |
| 0.0 | % |
Riverside V, CA |
| 2006 |
| 1985 |
| 85,346 |
| 50.0 | % | 830 |
| Y |
| 3.9 | % |
Riverside VI, CA |
| 2007 |
| 2004 |
| 74,900 |
| 76.9 | % | 409 |
| Y |
| 12.7 | % |
Roseville, CA |
| 2005 |
| 1979 |
| 60,094 |
| 75.2 | % | 547 |
| N |
| 0.0 | % |
Sacramento I, CA |
| 2005 |
| 1979 |
| 51,114 |
| 66.2 | % | 543 |
| Y |
| 0.0 | % |
Sacramento II, CA |
| 2005 |
| 1986 |
| 62,130 |
| 65.9 | % | 575 |
| Y |
| 0.0 | % |
San Bernardino I, CA |
| 1997 |
| 1987 |
| 83,253 |
| 58.8 | % | 578 |
| Y |
| 2.0 | % |
San Bernardino II, CA |
| 1997 |
| 1987 |
| 31,070 |
| 53.7 | % | 253 |
| N |
| 0.0 | % |
San Bernardino III, CA |
| 1997 |
| 1989 |
| 57,215 |
| 71.1 | % | 584 |
| Y |
| 0.0 | % |
San Bernardino IV, CA |
| 1997 |
| 1991 |
| 41,546 |
| 69.3 | % | 375 |
| Y |
| 0.0 | % |
San Bernardino V, CA |
| 1997 |
| 1985/92 |
| 35,671 |
| 63.9 | % | 402 |
| N |
| 0.0 | % |
San Bernardino VI, CA |
| 2005 |
| 2002/04 |
| 83,507 |
| 63.9 | % | 749 |
| N |
| 11.8 | % |
San Bernardino VII, CA |
| 2006 |
| 1974 |
| 56,795 |
| 58.8 | % | 499 |
| Y |
| 4.2 | % |
San Bernardino VIII, CA |
| 2006 |
| 1975 |
| 103,860 |
| 54.8 | % | 951 |
| N |
| 0.0 | % |
San Bernardino IX, CA |
| 2006 |
| 1978 |
| 78,839 |
| 73.9 | % | 645 |
| Y |
| 1.3 | % |
San Bernardino X, CA |
| 2006 |
| 1977 |
| 95,154 |
| 63.2 | % | 889 |
| Y |
| 0.0 | % |
San Marcos, CA |
| 2005 |
| 1979 |
| 37,430 |
| 76.0 | % | 246 |
| Y |
| 0.0 | % |
Santa Ana, CA |
| 2006 |
| 1984 |
| 64,571 |
| 69.6 | % | 710 |
| N |
| 2.4 | % |
South Sacramento, CA |
| 2005 |
| 1979 |
| 51,740 |
| 48.8 | % | 417 |
| Y |
| 0.0 | % |
Spring Valley, CA |
| 2006 |
| 1980 |
| 55,045 |
| 68.4 | % | 711 |
| Y |
| 0.0 | % |
Lutz I, FL |
| 2004 |
| 2000 |
| 72,795 |
| 74.6 | % | 658 |
| Y |
| 34.0 | % |
Lutz II, FL |
| 2004 |
| 1999 |
| 69,378 |
| 75.5 | % | 549 |
| Y |
| 20.4 | % |
Margate I, FL † |
| 1994 |
| 1979/81 |
| 55,677 |
| 93.6 | % | 343 |
| N |
| 10.5 | % |
Margate II, FL † |
| 1996 |
| 1985 |
| 66,135 |
| 93.4 | % | 317 |
| Y |
| 65.0 | % |
Merrit Island, FL |
| 2000 |
| 2000 |
| 50,523 |
| 93.2 | % | 470 |
| Y |
| 56.4 | % |
Miami I, FL |
| 1995 |
| 1995 |
| 47,200 |
| 91.6 | % | 556 |
| Y |
| 52.2 | % |
Miami II, FL |
| 1994 |
| 1987 |
| 57,165 |
| 62.6 | % | 598 |
| Y |
| 0.1 | % |
Miami III, FL |
| 1994 |
| 1989 |
| 67,360 |
| 88.4 | % | 573 |
| Y |
| 7.8 | % |
Miami IV, FL |
| 1995 |
| 1987 |
| 58,298 |
| 85.9 | % | 610 |
| Y |
| 7.0 | % |
Miami V, FL |
| 1995 |
| 1976 |
| 77,825 |
| 76.4 | % | 369 |
| Y |
| 4.0 | % |
Miami VI, FL |
| 2005 |
| 1988/03 |
| 152,075 |
| 67.2 | % | 1504 |
| N |
| 93.0 | % |
Naples I, FL |
| 1996 |
| 1996 |
| 48,150 |
| 87.9 | % | 349 |
| Y |
| 26.6 | % |
Naples II, FL |
| 1997 |
| 1985 |
| 65,994 |
| 76.0 | % | 647 |
| Y |
| 43.9 | % |
Naples III, FL |
| 1997 |
| 1981/83 |
| 80,709 |
| 75.5 | % | 889 |
| Y |
| 24.0 | % |
Naples IV, FL |
| 1998 |
| 1990 |
| 40,023 |
| 70.7 | % | 444 |
| N |
| 41.4 | % |
Ocala, FL |
| 1994 |
| 1988 |
| 42,086 |
| 92.1 | % | 360 |
| Y |
| 9.7 | % |
Ocoee, FL |
| 2005 |
| 1997 |
| 76,258 |
| 83.2 | % | 665 |
| Y |
| 15.5 | % |
Orange City, FL |
| 2004 |
| 2001 |
| 59,781 |
| 72.0 | % | 680 |
| N |
| 39.0 | % |
Orlando I, FL (6) |
| 1997 |
| 1987 |
| 51,770 |
| 85.8 | % | 453 |
| Y |
| 4.8 | % |
Orlando II, FL |
| 2005 |
| 2002/04 |
| 92,944 |
| 89.6 | % | 788 |
| N |
| 74.1 | % |
Orlando III, FL |
| 2006 |
| 1988/90/96 |
| 104,445 |
| 81.9 | % | 709 |
| Y |
| 7.3 | % |
Oviedo, FL |
| 2006 |
| 1988/1991 |
| 49,386 |
| 73.6 | % | 407 |
| Y |
| 0.0 | % |
Pembroke Pines, FL |
| 1997 |
| 1997 |
| 67,505 |
| 93.3 | % | 692 |
| Y |
| 73.1 | % |
Royal Palm Beach, FL † |
| 1994 |
| 1988 |
| 98,851 |
| 79.1 | % | 670 |
| N |
| 79.2 | % |
Sanford, FL |
| 2006 |
| 1988/2006 |
| 62,010 |
| 87.7 | % | 449 |
| Y |
| 36.5 | % |
Sarasota, FL |
| 1998 |
| 1998 |
| 70,798 |
| 81.5 | % | 532 |
| Y |
| 43.0 | % |
St. Augustine, FL |
| 1996 |
| 1985 |
| 59,830 |
| 74.8 | % | 581 |
| Y |
| 29.6 | % |
Stuart I, FL |
| 1997 |
| 1986 |
| 41,694 |
| 83.8 | % | 524 |
| Y |
| 27.0 | % |
Stuart II, FL |
| 1997 |
| 1995 |
| 89,541 |
| 84.8 | % | 896 |
| Y |
| 34.1 | % |
Tampa I, FL |
| 1994 |
| 1987 |
| 60,150 |
| 90.2 | % | 416 |
| Y |
| 0.0 | % |
Tampa II, FL |
| 2001 |
| 1985 |
| 56,047 |
| 81.8 | % | 476 |
| Y |
| 16.8 | % |
Vero Beach, FL |
| 1997 |
| 1986/87 |
| 50,515 |
| 90.1 | % | 482 |
| N |
| 23.9 | % |
West Palm Beach I, FL |
| 2001 |
| 1997 |
| 68,295 |
| 87.0 | % | 1028 |
| Y |
| 47.3 | % |
West Palm Beach II, FL |
| 2004 |
| 1996 |
| 93,915 |
| 92.9 | % | 913 |
| Y |
| 77.0 | % |
Alpharetta, GA |
| 2001 |
| 1996 |
| 90,685 |
| 75.4 | % | 670 |
| Y |
| 74.9 | % |
Austell , GA |
| 2006 |
| 2000 |
| 83,865 |
| 70.3 | % | 641 |
| Y |
| 67.2 | % |
Decatur, GA |
| 1998 |
| 1986 |
| 148,680 |
| 63.4 | % | 1409 |
| Y |
| 3.1 | % |
Norcross, GA |
| 2001 |
| 1997 |
| 85,460 |
| 74.7 | % | 598 |
| Y |
| 55.1 | % |
Peachtree City, GA |
| 2001 |
| 1997 |
| 50,034 |
| 72.4 | % | 449 |
| N |
| 74.6 | % |
Smyrna, GA |
| 2001 |
| 2000 |
| 56,528 |
| 93.2 | % | 509 |
| Y |
| 100.0 | % |
Addison, IL |
| 2004 |
| 1979 |
| 31,775 |
| 88.6 | % | 377 |
| Y |
| 0.0 | % |
Aurora, IL |
| 2004 |
| 1996 |
| 74,440 |
| 52.9 | % | 573 |
| Y |
| 6.9 | % |
Bartlett I, IL |
| 2004 |
| 1987 |
| 41,394 |
| 79.8 | % | 430 |
| Y |
| 0.5 | % |
Bartlett II, IL |
| 2004 |
| 1987 |
| 51,725 |
| 83.3 | % | 421 |
| Y |
| 33.5 | % |
Bellwood, IL |
| 2001 |
| 1999 |
| 86,700 |
| 82.6 | % | 724 |
| Y |
| 52.1 | % |
Des Plaines, IL (6) |
| 2004 |
| 1978 |
| 74,600 |
| 77.9 | % | 643 |
| Y |
| 0.0 | % |
Elk Grove Village, IL |
| 2004 |
| 1987 |
| 63,638 |
| 85.7 | % | 655 |
| Y |
| 0.3 | % |
Glenview, IL |
| 2004 |
| 1998 |
| 100,345 |
| 77.8 | % | 764 |
| Y |
| 100.0 | % |
Gurnee, IL |
| 2004 |
| 1987 |
| 80,500 |
| 70.1 | % | 741 |
| Y |
| 34.0 | % |
Harvey, IL |
| 2004 |
| 1987 |
| 59,816 |
| 86.5 | % | 587 |
| Y |
| 3.0 | % |
Joliet, IL |
| 2004 |
| 1993 |
| 74,750 |
| 57.0 | % | 481 |
| Y |
| 23.3 | % |
Lake Zurich, IL |
| 2004 |
| 1988 |
| 46,635 |
| 81.3 | % | 450 |
| Y |
| 0.0 | % |
Lombard, IL † |
| 2004 |
| 1981 |
| 61,242 |
| 79.2 | % | 520 |
| Y |
| 18.3 | % |
Mount Prospect, IL |
| 2004 |
| 1979 |
| 65,200 |
| 68.1 | % | 610 |
| Y |
| 12.6 | % |
Mundelein, IL |
| 2004 |
| 1990 |
| 44,900 |
| 61.5 | % | 509 |
| Y |
| 8.9 | % |
North Chicago, IL |
| 2004 |
| 1985 |
| 53,500 |
| 81.4 | % | 445 |
| N |
| 0.0 | % |
Plainfield I, IL |
| 2004 |
| 1998 |
| 54,375 |
| 64.1 | % | 410 |
| N |
| 0.0 | % |
Plainfield II, IL |
| 2005 |
| 2000 |
| 52,450 |
| 63.1 | % | 368 |
| N |
| 16.8 | % |
Schaumburg, IL |
| 2004 |
| 1988 |
| 31,157 |
| 70.2 | % | 325 |
| N |
| 0.8 | % |
Streamwood, IL |
| 2004 |
| 1982 |
| 64,565 |
| 68.3 | % | 578 |
| N |
| 0.0 | % |
Warrensville, IL |
| 2005 |
| 1977/89 |
| 46,728 |
| 76.7 | % | 382 |
| N |
| 0.0 | % |
Waukegan, IL |
| 2004 |
| 1977 |
| 79,950 |
| 73.4 | % | 715 |
| Y |
| 8.4 | % |
West Chicago, IL |
| 2004 |
| 1979 |
| 48,625 |
| 70.8 | % | 440 |
| Y |
| 0.0 | % |
Westmont, IL |
| 2004 |
| 1979 |
| 53,900 |
| 74.9 | % | 403 |
| Y |
| 0.0 | % |
Wheeling I, IL |
| 2004 |
| 1974 |
| 54,900 |
| 73.0 | % | 505 |
| Y |
| 0.0 | % |
Wheeling II, IL |
| 2004 |
| 1979 |
| 68,025 |
| 65.0 | % | 624 |
| Y |
| 7.3 | % |
Woodridge, IL |
| 2004 |
| 1987 |
| 50,595 |
| 78.1 | % | 477 |
| Y |
| 0.0 | % |
Indianapolis I, IN |
| 2004 |
| 1987 |
| 43,800 |
| 89.0 | % | 332 |
| N |
| 0.0 | % |
Indianapolis II, IN |
| 2004 |
| 1997 |
| 45,100 |
| 77.5 | % | 460 |
| Y |
| 15.6 | % |
Indianapolis III, IN |
| 2004 |
| 1999 |
| 61,325 |
| 82.2 | % | 506 |
| Y |
| 32.6 | % |
Indianapolis IV, IN |
| 2004 |
| 1976 |
| 68,494 |
| 56.0 | % | 616 |
| Y |
| 0.0 | % |
Indianapolis IX, IN |
| 2004 |
| 1976 |
| 62,196 |
| 81.0 | % | 557 |
| Y |
| 0.0 | % |
Indianapolis V, IN |
| 2004 |
| 1999 |
| 75,025 |
| 88.0 | % | 596 |
| Y |
| 33.5 | % |
Indianapolis VI, IN |
| 2004 |
| 1976 |
| 73,693 |
| 80.5 | % | 730 |
| Y |
| 0.0 | % |
Indianapolis VII, IN |
| 2004 |
| 1992 |
| 95,290 |
| 67.7 | % | 884 |
| Y |
| 0.0 | % |
Indianapolis VIII, IN |
| 2004 |
| 1975 |
| 81,676 |
| 67.5 | % | 738 |
| Y |
| 0.0 | % |
Baton Rouge I, LA |
| 1997 |
| 1980 |
| 55,984 |
| 94.8 | % | 464 |
| Y |
| 9.7 | % |
Baton Rouge II, LA |
| 1997 |
| 1980 |
| 72,082 |
| 91.7 | % | 499 |
| Y |
| 33.7 | % |
Baton Rouge III, LA |
| 1997 |
| 1982 |
| 61,078 |
| 95.7 | % | 451 |
| Y |
| 10.2 | % |
Baton Rouge IV, LA |
| 1998 |
| 1995 |
| 8,920 |
| 90.8 | % | 84 |
| N |
| 100.0 | % |
Prairieville, LA |
| 1998 |
| 1991 |
| 56,520 |
| 80.4 | % | 306 |
| Y |
| 3.0 | % |
Slidell, LA |
| 2001 |
| 1998 |
| 79,740 |
| 97.0 | % | 525 |
| Y |
| 46.5 | % |
Boston, MA |
| 2002 |
| 2001 |
| 61,360 |
| 64.4 | % | 630 |
| Y |
| 100.0 | % |
Leominster, MA |
| 1998 |
| 1987/88/00 |
| 54,181 |
| 72.0 | % | 504 |
| Y |
| 45.1 | % |
Baltimore, MD |
| 2001 |
| 1999/00 |
| 93,750 |
| 76.0 | % | 808 |
| Y |
| 45.5 | % |
California, MD |
| 2004 |
| 1998 |
| 67,528 |
| 82.2 | % | 722 |
| Y |
| 40.1 | % |
Gaithersburg, MD |
| 2005 |
| 1998 |
| 87,170 |
| 69.5 | % | 798 |
| Y |
| 100.0 | % |
Laurel, MD † |
| 2001 |
| 1978/99/00 |
| 161,530 |
| 84.0 | % | 956 |
| N |
| 63.7 | % |
Temple Hills, MD |
| 2001 |
| 2000 |
| 95,830 |
| 74.5 | % | 813 |
| Y |
| 77.6 | % |
Grand Rapids, MI |
| 1996 |
| 1976 |
| 87,295 |
| 73.3 | % | 508 |
| Y |
| 0.0 | % |
Portage, MI (6) |
| 1996 |
| 1980 |
| 50,671 |
| 85.4 | % | 340 |
| N |
| 0.0 | % |
Romulus, MI |
| 1997 |
| 1997 |
| 43,970 |
| 57.3 | % | 318 |
| Y |
| 10.7 | % |
Wyoming, MI |
| 1996 |
| 1987 |
| 90,975 |
| 78.2 | % | 621 |
| N |
| 0.0 | % |
Biloxi, MS |
| 1997 |
| 1978/93 |
| 66,188 |
| 89.4 | % | 620 |
| Y |
| 7.4 | % |
Gautier, MS |
| 1997 |
| 1981 |
| 35,775 |
| 95.4 | % | 306 |
| Y |
| 3.2 | % |
Gulfport I, MS |
| 1997 |
| 1970 |
| 73,460 |
| 85.1 | % | 513 |
| Y |
| 0.0 | % |
|
| Year Acquired/ |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Sun City, CA |
| 1998 |
| 1989 |
| 38,335 |
| 90.0 | % | 362 |
| N |
| 0.0 | % |
Temecula I, CA |
| 1998 |
| 1985/2003 |
| 81,700 |
| 72.3 | % | 683 |
| Y |
| 46.4 | % |
Temecula II, CA |
| 2006 |
| 2003 |
| 84,345 |
| 72.4 | % | 643 |
| Y |
| 51.2 | % |
Thousand Palms, CA |
| 2006 |
| 1988/01 |
| 75,445 |
| 58.0 | % | 765 |
| Y |
| 27.1 | % |
Vista I, CA |
| 2001 |
| 1988 |
| 74,605 |
| 82.8 | % | 612 |
| Y |
| 0.0 | % |
Vista II, CA |
| 2005 |
| 2001/02/03 |
| 147,421 |
| 70.6 | % | 1261 |
| Y |
| 2.3 | % |
Walnut, CA |
| 2005 |
| 1987 |
| 50,708 |
| 72.2 | % | 536 |
| Y |
| 9.2 | % |
West Sacramento, CA |
| 2005 |
| 1984 |
| 39,715 |
| 73.0 | % | 482 |
| Y |
| 0.0 | % |
Westminster, CA |
| 2005 |
| 1983/98 |
| 68,148 |
| 77.7 | % | 558 |
| Y |
| 0.0 | % |
Yucaipa, CA |
| 1997 |
| 1989 |
| 77,560 |
| 71.1 | % | 661 |
| Y |
| 0.0 | % |
Aurora I, CO |
| 2005 |
| 1981 |
| 75,627 |
| 72.0 | % | 602 |
| Y |
| 0.0 | % |
Colorado Springs I, CO |
| 2005 |
| 1986 |
| 47,975 |
| 76.0 | % | 454 |
| Y |
| 0.0 | % |
Colorado Springs II, CO |
| 2006 |
| 2001 |
| 62,400 |
| 78.5 | % | 433 |
| Y |
| 0.0 | % |
Denver I, CO |
| 2006 |
| 1997 |
| 59,200 |
| 70.4 | % | 451 |
| Y |
| 0.0 | % |
Federal Heights, CO |
| 2005 |
| 1980 |
| 54,770 |
| 82.7 | % | 559 |
| Y |
| 0.0 | % |
Golden, CO |
| 2005 |
| 1985 |
| 85,830 |
| 82.5 | % | 621 |
| Y |
| 1.2 | % |
Littleton I , CO |
| 2005 |
| 1987 |
| 53,490 |
| 72.5 | % | 449 |
| Y |
| 37.4 | % |
Northglenn, CO |
| 2005 |
| 1980 |
| 52,102 |
| 76.5 | % | 498 |
| Y |
| 0.0 | % |
Bloomfield, CT |
| 1997 |
| 1987/93/94 |
| 48,700 |
| 74.4 | % | 436 |
| Y |
| 6.6 | % |
Branford, CT |
| 1995 |
| 1986 |
| 50,679 |
| 76.4 | % | 431 |
| N |
| 2.2 | % |
Bristol, CT |
| 2005 |
| 1989/99 |
| 48,050 |
| 76.5 | % | 438 |
| N |
| 22.3 | % |
East Windsor, CT |
| 2005 |
| 1986/89 |
| 45,900 |
| 77.4 | % | 296 |
| N |
| 0.0 | % |
Enfield, CT |
| 2001 |
| 1989 |
| 52,875 |
| 92.2 | % | 365 |
| N |
| 0.0 | % |
Gales Ferry, CT |
| 1995 |
| 1987/89 |
| 54,130 |
| 72.7 | % | 596 |
| N |
| 6.3 | % |
Manchester I, CT (6) |
| 2002 |
| 1999/00/01 |
| 47,125 |
| 86.3 | % | 459 |
| N |
| 37.6 | % |
Manchester II, CT |
| 2005 |
| 1984 |
| 52,725 |
| 74.1 | % | 390 |
| N |
| 0.0 | % |
Milford, CT |
| 1994 |
| 1975 |
| 44,885 |
| 76.9 | % | 376 |
| Y |
| 4.0 | % |
Monroe, CT |
| 2005 |
| 1996/03 |
| 58,500 |
| 76.9 | % | 400 |
| N |
| 0.0 | % |
Mystic, CT |
| 1994 |
| 1975/86 |
| 50,725 |
| 81.2 | % | 556 |
| Y |
| 2.3 | % |
Newington I, CT |
| 2005 |
| 1978/97 |
| 42,520 |
| 71.2 | % | 248 |
| N |
| 0.0 | % |
Newington II, CT |
| 2005 |
| 1979/81 |
| 36,140 |
| 82.9 | % | 198 |
| N |
| 0.0 | % |
Old Saybrook I, CT |
| 2005 |
| 1982/88/00 |
| 87,625 |
| 80.6 | % | 713 |
| N |
| 5.8 | % |
Old Saybrook II, CT |
| 2005 |
| 1988/02 |
| 26,425 |
| 80.9 | % | 254 |
| N |
| 54.6 | % |
South Windsor, CT |
| 1994 |
| 1976 |
| 72,125 |
| 70.4 | % | 553 |
| Y |
| 1.1 | % |
Stamford, CT |
| 2005 |
| 1997 |
| 28,957 |
| 78.3 | % | 367 |
| N |
| 32.8 | % |
Washington, DC |
| 2008 |
| 2002 |
| 62,695 |
| 89.5 | % | 752 |
| Y |
| 96.5 | % |
Boca Raton, FL |
| 2001 |
| 1998 |
| 37,958 |
| 76.5 | % | 605 |
| Y |
| 68.2 | % |
Boynton Beach I, FL |
| 2001 |
| 1999 |
| 61,977 |
| 78.6 | % | 767 |
| Y |
| 54.2 | % |
Boynton Beach II, FL |
| 2005 |
| 2001 |
| 61,777 |
| 67.8 | % | 580 |
| Y |
| 82.3 | % |
Bradenton I, FL |
| 2004 |
| 1979 |
| 68,391 |
| 58.5 | % | 635 |
| N |
| 2.7 | % |
Bradenton II, FL |
| 2004 |
| 1996 |
| 87,810 |
| 77.5 | % | 859 |
| Y |
| 40.1 | % |
Cape Coral, FL |
| 2000* |
| 2000 |
| 76,592 |
| 75.0 | % | 864 |
| Y |
| 83.5 | % |
Dania, FL |
| 1994 |
| 1988 |
| 58,270 |
| 78.7 | % | 498 |
| Y |
| 26.9 | % |
Dania Beach, FL (6) |
| 2004 |
| 1984 |
| 181,513 |
| 65.4 | % | 1975 |
| N |
| 20.4 | % |
Davie, FL |
| 2001* |
| 2001 |
| 81,135 |
| 70.1 | % | 853 |
| Y |
| 55.6 | % |
Deerfield Beach, FL |
| 1998* |
| 1998 |
| 57,280 |
| 82.8 | % | 519 |
| Y |
| 38.8 | % |
Delray Beach, FL |
| 2001 |
| 1999 |
| 67,821 |
| 74.8 | % | 834 |
| Y |
| 39.3 | % |
Fernandina Beach, FL |
| 1996 |
| 1986 |
| 110,785 |
| 71.7 | % | 828 |
| N |
| 35.7 | % |
Ft. Lauderdale, FL |
| 1999 |
| 1999 |
| 70,093 |
| 87.8 | % | 690 |
| Y |
| 46.8 | % |
Ft. Myers, FL |
| 1998 |
| 1998 |
| 67,642 |
| 68.8 | % | 591 |
| Y |
| 67.0 | % |
Jacksonville I, FL |
| 2005 |
| 2005 |
| 80,586 |
| 84.1 | % | 730 |
| N |
| 100.0 | % |
Jacksonville II, FL |
| 2007 |
| 2004 |
| 65,070 |
| 87.2 | % | 664 |
| N |
| 100.0 | % |
Jacksonville III, FL |
| 2007 |
| 2003 |
| 65,595 |
| 80.6 | % | 691 |
| N |
| 100.0 | % |
Jacksonville IV, FL |
| 2007 |
| 2006 |
| 78,370 |
| 73.3 | % | 704 |
| N |
| 75.1 | % |
Jacksonville V, FL |
| 2007 |
| 2004 |
| 82,160 |
| 80.2 | % | 713 |
| N |
| 82.2 | % |
Kendall, FL |
| 2007 |
| 2003 |
| 75,395 |
| 76.0 | % | 703 |
| N |
| 71.0 | % |
Lake Worth, FL † |
| 1998 |
| 1998/02 |
| 161,808 |
| 88.0 | % | 1396 |
| Y |
| 37.2 | % |
Lakeland I, FL |
| 1994 |
| 1988 |
| 49,095 |
| 78.5 | % | 491 |
| Y |
| 79.4 | % |
Lutz I, FL |
| 2004 |
| 2000 |
| 66,595 |
| 64.5 | % | 614 |
| Y |
| 37.2 | % |
Lutz II, FL |
| 2004 |
| 1999 |
| 69,232 |
| 80.2 | % | 539 |
| Y |
| 20.6 | % |
Margate I, FL † |
| 1994 |
| 1979/81 |
| 54,505 |
| 75.1 | % | 339 |
| N |
| 10.0 | % |
Margate II, FL † |
| 1996 |
| 1985 |
| 65,186 |
| 89.2 | % | 425 |
| Y |
| 28.8 | % |
Merrit Island, FL |
| 2000 |
| 2000 |
| 50,417 |
| 71.2 | % | 465 |
| Y |
| 56.7 | % |
Miami I, FL |
| 1995 |
| 1995 |
| 46,825 |
| 78.7 | % | 560 |
| Y |
| 52.1 | % |
Miami II, FL |
| 1994 |
| 1989 |
| 67,060 |
| 72.1 | % | 567 |
| Y |
| 8.0 | % |
Miami VI, FL |
| 2005 |
| 1988/03 |
| 150,510 |
| 70.4 | % | 1523 |
| N |
| 86.8 | % |
Naples I, FL |
| 1996 |
| 1996 |
| 48,150 |
| 88.2 | % | 336 |
| Y |
| 26.6 | % |
Naples II, FL |
| 1997 |
| 1985 |
| 65,850 |
| 84.8 | % | 644 |
| Y |
| 44.6 | % |
Naples III, FL |
| 1997 |
| 1981/83 |
| 80,675 |
| 65.0 | % | 818 |
| Y |
| 23.9 | % |
Naples IV, FL |
| 1998 |
| 1990 |
| 40,700 |
| 70.9 | % | 441 |
| N |
| 43.6 | % |
Ocoee, FL |
| 2005 |
| 1997 |
| 76,130 |
| 81.2 | % | 627 |
| Y |
| 15.5 | % |
Orange City, FL |
| 2004 |
| 2001 |
| 59,586 |
| 76.0 | % | 648 |
| N |
| 39.1 | % |
Gulfport II, MS |
| 1997 |
| 1986 |
| 64,745 |
| 95.9 | % | 436 |
| Y |
| 18.8 | % |
Gulfport III, MS |
| 1997 |
| 1977/93 |
| 61,451 |
| 94.5 | % | 486 |
| Y |
| 33.2 | % |
Waveland, MS |
| 1998 |
| 1982/83/84/93 |
| 48,641 |
| 62.4 | % | 382 |
| Y |
| 23.7 | % |
Belmont, NC |
| 2001 |
| 1996/97/98 |
| 81,215 |
| 90.4 | % | 569 |
| N |
| 7.8 | % |
Burlington I, NC |
| 2001 |
| 1990/91/93/94/98 |
| 110,502 |
| 79.7 | % | 951 |
| N |
| 4.0 | % |
Burlington II, NC |
| 2001 |
| 1991 |
| 39,802 |
| 77.8 | % | 392 |
| Y |
| 11.9 | % |
Cary, NC |
| 2001 |
| 1993/94/97 |
| 110,464 |
| 75.0 | % | 751 |
| N |
| 8.5 | % |
Charlotte, NC |
| 1999 |
| 1999 |
| 69,246 |
| 92.8 | % | 740 |
| N |
| 52.4 | % |
Fayetteville I, NC |
| 1997 |
| 1981 |
| 41,600 |
| 95.2 | % | 352 |
| N |
| 0.0 | % |
Fayetteville II, NC |
| 1997 |
| 1993/95 |
| 54,425 |
| 92.3 | % | 557 |
| Y |
| 11.9 | % |
Raleigh, NC |
| 1998 |
| 1994/95 |
| 48,525 |
| 81.9 | % | 431 |
| Y |
| 8.2 | % |
Brick, NJ |
| 1994 |
| 1981 |
| 51,892 |
| 83.5 | % | 456 |
| Y |
| 0.0 | % |
Clifton, NJ |
| 2005 |
| 2001 |
| 105,625 |
| 81.5 | % | 1014 |
| Y |
| 100.0 | % |
Cranford, NJ |
| 1994 |
| 1987 |
| 91,450 |
| 76.4 | % | 848 |
| Y |
| 7.9 | % |
East Hanover, NJ |
| 1994 |
| 1983 |
| 107,874 |
| 69.7 | % | 1019 |
| N |
| 1.6 | % |
Elizabeth, NJ |
| 2005 |
| 1925/97 |
| 40,202 |
| 56.2 | % | 686 |
| N |
| 45.0 | % |
Fairview, NJ |
| 1997 |
| 1989 |
| 28,021 |
| 79.8 | % | 452 |
| N |
| 100.0 | % |
Hamilton, NJ |
| 2006 |
| 1990 |
| 70,750 |
| 57.6 | % | 598 |
| Y |
| 0.0 | % |
Hoboken, NJ |
| 2005 |
| 1945/97 |
| 34,681 |
| 80.9 | % | 750 |
| N |
| 100.0 | % |
Jersey City, NJ |
| 1994 |
| 1985 |
| 91,736 |
| 82.3 | % | 1095 |
| Y |
| 0.0 | % |
Linden I, NJ |
| 1994 |
| 1983 |
| 100,625 |
| 66.4 | % | 1125 |
| N |
| 2.7 | % |
Linden II, NJ † |
| 1994 |
| 1982 |
| 36,000 |
| 92.0 | % | 26 |
| N |
| 0.0 | % |
Morris Township, NJ (5) |
| 1997 |
| 1972 |
| 76,175 |
| 77.2 | % | 573 |
| Y |
| 1.3 | % |
Parsippany, NJ |
| 1997 |
| 1981 |
| 66,375 |
| 75.0 | % | 613 |
| Y |
| 1.4 | % |
Randolph, NJ |
| 2002 |
| 1998/99 |
| 52,232 |
| 70.4 | % | 592 |
| Y |
| 82.5 | % |
Sewell, NJ |
| 2001 |
| 1984/98 |
| 57,769 |
| 76.3 | % | 448 |
| N |
| 4.4 | % |
Albuquerque I, NM |
| 2005 |
| 1985 |
| 65,876 |
| 89.3 | % | 633 |
| Y |
| 0.0 | % |
Albuquerque II, NM |
| 2005 |
| 1985 |
| 59,022 |
| 86.4 | % | 553 |
| Y |
| 0.0 | % |
Albuquerque III, NM |
| 2005 |
| 1978 |
| 41,163 |
| 87.5 | % | 460 |
| Y |
| 0.0 | % |
Albuquerque IV, NM |
| 2005 |
| 1986 |
| 56,554 |
| 83.7 | % | 536 |
| Y |
| 0.0 | % |
Albuquerque V, NM |
| 2006 |
| 1994 |
| 52,349 |
| 72.5 | % | 426 |
| Y |
| 15.0 | % |
Carlsbad, NM |
| 2005 |
| 1975 |
| 40,159 |
| 95.2 | % | 348 |
| Y |
| 0.0 | % |
Deming, NM |
| 2005 |
| 1973/83 |
| 33,100 |
| 91.5 | % | 256 |
| Y |
| 0.0 | % |
Las Cruces, NM |
| 2005 |
| 1984 |
| 44,050 |
| 97.0 | % | 406 |
| Y |
| 0.0 | % |
Lovington, NM |
| 2005 |
| 1975 |
| 15,950 |
| 91.1 | % | 172 |
| Y |
| 0.0 | % |
Silver City, NM |
| 2005 |
| 1972 |
| 27,075 |
| 95.3 | % | 256 |
| Y |
| 0.0 | % |
Truth or Consequences, NM |
| 2005 |
| 1977/99/00 |
| 24,510 |
| 95.1 | % | 168 |
| Y |
| 0.0 | % |
Las Vegas I, NV † |
| 2006 |
| 1986 |
| 49,460 |
| 64.5 | % | 413 |
| Y |
| 0.0 | % |
Las Vegas II, NV |
| 2006 |
| 1997 |
| 49,125 |
| 72.4 | % | 402 |
| Y |
| 0.0 | % |
Endicott, NY |
| 2005 |
| 1989 |
| 35,330 |
| 88.9 | % | 297 |
| Y |
| 0.0 | % |
Jamaica, NY |
| 2001 |
| 2000 |
| 90,156 |
| 66.8 | % | 928 |
| Y |
| 100.0 | % |
New Rochelle, NY † |
| 2005 |
| 1998 |
| 30,343 |
| 89.1 | % | 402 |
| N |
| 0.0 | % |
North Babylon, NY |
| 1998 |
| 1988/99 |
| 78,288 |
| 74.6 | % | 635 |
| Y |
| 9.1 | % |
Riverhead, NY |
| 2005 |
| 1985/86/99 |
| 41,410 |
| 82.8 | % | 346 |
| N |
| 0.0 | % |
Southold, NY † |
| 2005 |
| 1989 |
| 59,773 |
| 86.7 | % | 587 |
| N |
| 0.0 | % |
Boardman, OH |
| 1980 |
| 1980/89 |
| 66,187 |
| 79.5 | % | 525 |
| Y |
| 16.1 | % |
Brecksville, OH † |
| 1998 |
| 1970/89 |
| 64,764 |
| 85.0 | % | 410 |
| Y |
| 34.2 | % |
Canton I, OH |
| 2005 |
| 1979/87 |
| 40,545 |
| 70.2 | % | 414 |
| Y |
| 0.0 | % |
Canton II, OH |
| 2005 |
| 1997 |
| 31,700 |
| 86.0 | % | 201 |
| N |
| 0.0 | % |
Centerville I, OH |
| 2004 |
| 1976 |
| 86,590 |
| 71.1 | % | 654 |
| Y |
| 0.0 | % |
Centerville II, OH |
| 2004 |
| 1976 |
| 43,600 |
| 68.1 | % | 310 |
| N |
| 0.0 | % |
Cleveland I, OH |
| 2005 |
| 1997/99 |
| 46,400 |
| 93.6 | % | 353 |
| Y |
| 0.0 | % |
Cleveland II, OH |
| 2005 |
| 2000 |
| 58,652 |
| 60.1 | % | 591 |
| Y |
| 0.0 | % |
Columbus, OH |
| 2006 |
| 1999 |
| 72,355 |
| 69.4 | % | 589 |
| Y |
| 27.8 | % |
Dayton I, OH |
| 2004 |
| 1978 |
| 43,420 |
| 74.1 | % | 351 |
| N |
| 0.0 | % |
Dayton II, OH |
| 2005 |
| 1989/00 |
| 47,550 |
| 88.6 | % | 368 |
| N |
| 0.0 | % |
Euclid I, OH |
| 1988* |
| 1988 |
| 47,260 |
| 83.1 | % | 441 |
| Y |
| 21.9 | % |
Euclid II, OH |
| 1988* |
| 1988 |
| 48,058 |
| 81.2 | % | 381 |
| Y |
| 0.0 | % |
Grove City, OH |
| 2006 |
| 1997 |
| 89,490 |
| 82.3 | % | 745 |
| Y |
| 16.1 | % |
Hilliard, OH |
| 2006 |
| 1995 |
| 89,915 |
| 58.2 | % | 764 |
| Y |
| 25.8 | % |
Hudson, OH † |
| 1998 |
| 1987 |
| 68,470 |
| 83.7 | % | 421 |
| N |
| 13.9 | % |
Lakewood, OH |
| 1989* |
| 1989 |
| 39,523 |
| 78.3 | % | 486 |
| Y |
| 24.5 | % |
Louisville, OH |
| 2005 |
| 1988/90 |
| 60,402 |
| 82.4 | % | 390 |
| N |
| 0.0 | % |
Marblehead, OH |
| 2005 |
| 1988/98 |
| 76,500 |
| 70.5 | % | 388 |
| N |
| 0.0 | % |
Mason, OH |
| 1998 |
| 1981 |
| 33,700 |
| 81.8 | % | 282 |
| Y |
| 0.0 | % |
Mentor, OH |
| 2005 |
| 1983/99 |
| 39,001 |
| 84.0 | % | 231 |
| N |
| 23.1 | % |
Miamisburg, OH † |
| 2004 |
| 1975 |
| 61,050 |
| 83.5 | % | 432 |
| Y |
| 0.0 | % |
Middleburg Heights, OH |
| 1980* |
| 1980 |
| 94,150 |
| 73.3 | % | 667 |
| Y |
| 0.0 | % |
North Canton I, OH |
| 1979* |
| 1979 |
| 45,532 |
| 77.7 | % | 290 |
| Y |
| 0.0 | % |
North Canton II, OH |
| 1983* |
| 1983 |
| 44,380 |
| 83.7 | % | 354 |
| Y |
| 15.8 | % |
North Olmsted I, OH |
| 1979* |
| 1979 |
| 48,910 |
| 80.6 | % | 449 |
| Y |
| 1.2 | % |
North Olmsted II, OH |
| 1988* |
| 1988 |
| 48,050 |
| 77.9 | % | 406 |
| Y |
| 14.1 | % |
North Randall, OH |
| 1998* |
| 1998/02 |
| 80,452 |
| 79.7 | % | 803 |
| N |
| 90.3 | % |
Perry, OH |
| 2005 |
| 1992/97 |
| 68,851 |
| 71.4 | % | 431 |
| Y |
| 0.0 | % |
Reynoldsburg, OH |
| 2006 |
| 1979 |
| 67,745 |
| 75.7 | % | 663 |
| Y |
| 0.0 | % |
Warrensville Heights, OH |
| 1980* |
| 1980/82/98 |
| 90,531 |
| 76.9 | % | 746 |
| Y |
| 0.0 | % |
Westlake, OH |
| 2005 |
| 2001 |
| 62,800 |
| 87.5 | % | 460 |
| Y |
| 0.0 | % |
Willoughby, OH |
| 2005 |
| 1997 |
| 33,639 |
| 69.0 | % | 274 |
| Y |
| 0.0 | % |
Youngstown, OH |
| 1977* |
| 1977 |
| 66,700 |
| 82.2 | % | 500 |
| Y |
| 0.0 | % |
Levittown, PA |
| 2001 |
| 2000 |
| 78,230 |
| 84.4 | % | 671 |
| Y |
| 36.2 | % |
Philadelphia, PA |
| 2001 |
| 1999 |
| 99,181 |
| 80.1 | % | 914 |
| N |
| 91.6 | % |
Hilton Head I, SC † |
| 1997 |
| 1981/84 |
| 116,766 |
| 69.3 | % | 545 |
| Y |
| 5.4 | % |
Hilton Head II, SC † |
| 1997 |
| 1979/80 |
| 47,620 |
| 82.2 | % | 297 |
| Y |
| 0.0 | % |
Summerville, SC |
| 1998 |
| 1989 |
| 49,727 |
| 82.8 | % | 439 |
| Y |
| 10.1 | % |
Alcoa, TN |
| 2005 |
| 1986 |
| 42,550 |
| 81.4 | % | 351 |
| Y |
| 0.0 | % |
Antioch, TN |
| 2005 |
| 1985/98 |
| 76,445 |
| 90.8 | % | 565 |
| Y |
| 8.5 | % |
Cordova, TN |
| 2005 |
| 1987 |
| 54,725 |
| 79.6 | % | 388 |
| Y |
| 0.0 | % |
Cordova II, TN |
| 2006 |
| 1995 |
| 66,875 |
| 88.7 | % | 565 |
| Y |
| 9.9 | % |
Knoxville I, TN |
| 1997 |
| 1984 |
| 29,452 |
| 81.7 | % | 297 |
| Y |
| 5.4 | % |
Knoxville II, TN |
| 1997 |
| 1985 |
| 38,550 |
| 90.5 | % | 350 |
| Y |
| 7.0 | % |
Knoxville III, TN |
| 1998 |
| 1991 |
| 45,864 |
| 85.8 | % | 425 |
| Y |
| 6.7 | % |
Knoxville IV, TN |
| 1998 |
| 1983 |
| 59,070 |
| 89.7 | % | 456 |
| N |
| 1.1 | % |
Knoxville V, TN |
| 1998 |
| 1977 |
| 43,050 |
| 87.9 | % | 376 |
| N |
| 0.0 | % |
Knoxville VI, TN |
| 2005 |
| 1975 |
| 64,040 |
| 92.2 | % | 576 |
| Y |
| 0.0 | % |
Knoxville VII, TN |
| 2005 |
| 1983 |
| 55,394 |
| 91.1 | % | 448 |
| Y |
| 0.0 | % |
Knoxville VIII, TN |
| 2005 |
| 1978 |
| 97,098 |
| 83.5 | % | 777 |
| Y |
| 0.0 | % |
|
| Year Acquired/ |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Orlando I, FL (6) |
| 1997 |
| 1987 |
| 52,170 |
| 63.8 | % | 497 |
| Y |
| 4.9 | % |
Orlando II, FL |
| 2005 |
| 2002/04 |
| 63,084 |
| 83.6 | % | 586 |
| N |
| 74.2 | % |
Orlando III, FL |
| 2006 |
| 1988/90/96 |
| 104,140 |
| 68.2 | % | 790 |
| Y |
| 6.9 | % |
Oviedo, FL |
| 2006 |
| 1988/1991 |
| 49,251 |
| 76.8 | % | 425 |
| Y |
| 3.2 | % |
Pembroke Pines, FL |
| 1997 |
| 1997 |
| 67,321 |
| 83.0 | % | 702 |
| Y |
| 63.2 | % |
Royal Palm Beach I, FL † |
| 1994 |
| 1988 |
| 98,961 |
| 64.7 | % | 675 |
| N |
| 54.5 | % |
Royal Palm Beach II, FL |
| 2007 |
| 2004 |
| 81,415 |
| 72.2 | % | 770 |
| N |
| 82.3 | % |
Sanford, FL |
| 2006 |
| 1988/2006 |
| 61,810 |
| 70.8 | % | 438 |
| Y |
| 28.6 | % |
Sarasota, FL |
| 1998 |
| 1998 |
| 71,102 |
| 70.6 | % | 526 |
| Y |
| 42.5 | % |
St. Augustine, FL |
| 1996 |
| 1985 |
| 59,725 |
| 64.7 | % | 697 |
| Y |
| 29.9 | % |
Stuart, FL |
| 1997 |
| 1995 |
| 86,883 |
| 73.0 | % | 980 |
| N |
| 51.7 | % |
SW Ranches, FL |
| 2007 |
| 2004 |
| 64,955 |
| 81.9 | % | 648 |
| N |
| 85.3 | % |
Tampa II, FL |
| 2007 |
| 2001/2002 |
| 83,763 |
| 84.2 | % | 796 |
| N |
| 28.5 | % |
West Palm Beach I, FL |
| 2001 |
| 1997 |
| 68,063 |
| 77.7 | % | 993 |
| Y |
| 47.2 | % |
West Palm Beach II, FL |
| 2004 |
| 1996 |
| 94,503 |
| 79.7 | % | 835 |
| Y |
| 73.9 | % |
Alpharetta, GA |
| 2001 |
| 1996 |
| 90,485 |
| 71.0 | % | 665 |
| Y |
| 75.1 | % |
Austell , GA |
| 2006 |
| 2000 |
| 83,525 |
| 75.5 | % | 640 |
| N |
| 66.0 | % |
Decatur, GA |
| 1998 |
| 1986 |
| 148,320 |
| 73.0 | % | 1320 |
| Y |
| 3.1 | % |
Norcross, GA |
| 2001 |
| 1997 |
| 85,140 |
| 75.6 | % | 577 |
| Y |
| 55.4 | % |
Peachtree City, GA |
| 2001 |
| 1997 |
| 49,845 |
| 80.7 | % | 444 |
| N |
| 75.6 | % |
Smyrna, GA |
| 2001 |
| 2000 |
| 56,970 |
| 81.1 | % | 497 |
| Y |
| 100.0 | % |
Snellville, GA |
| 2007 |
| 1996/1997 |
| 80,100 |
| 88.9 | % | 753 |
| Y |
| 27.1 | % |
Suwanee I, GA |
| 2007 |
| 2000/2003 |
| 85,190 |
| 72.2 | % | 622 |
| Y |
| 28.7 | % |
Suwanee II, GA |
| 2007 |
| 2005 |
| 79,640 |
| 75.2 | % | 574 |
| N |
| 61.5 | % |
Addison, IL |
| 2004 |
| 1979 |
| 31,325 |
| 88.4 | % | 369 |
| Y |
| 0.0 | % |
Aurora, IL |
| 2004 |
| 1996 |
| 74,060 |
| 73.2 | % | 553 |
| Y |
| 6.9 | % |
Bartlett, IL |
| 2004 |
| 1987 |
| 51,425 |
| 93.4 | % | 412 |
| Y |
| 33.1 | % |
Bellwood, IL |
| 2001 |
| 1999 |
| 86,525 |
| 82.5 | % | 744 |
| Y |
| 52.2 | % |
Des Plaines, IL (6) |
| 2004 |
| 1978 |
| 74,400 |
| 85.5 | % | 638 |
| N |
| 0.0 | % |
Elk Grove Village, IL |
| 2004 |
| 1987 |
| 64,179 |
| 86.9 | % | 631 |
| Y |
| 5.5 | % |
Glenview, IL |
| 2004 |
| 1998 |
| 100,115 |
| 91.7 | % | 738 |
| Y |
| 100.0 | % |
Gurnee, IL |
| 2004 |
| 1987 |
| 80,275 |
| 82.2 | % | 726 |
| Y |
| 34.1 | % |
Hanover, IL |
| 2004 |
| 1987 |
| 41,178 |
| 67.0 | % | 408 |
| N |
| 0.4 | % |
Harvey, IL |
| 2004 |
| 1987 |
| 60,090 |
| 88.9 | % | 575 |
| Y |
| 3.0 | % |
Joliet, IL |
| 2004 |
| 1993 |
| 74,350 |
| 69.9 | % | 483 |
| Y |
| 96.4 | % |
Kildeer, IL |
| 2004 |
| 1988 |
| 46,475 |
| 89.4 | % | 431 |
| Y |
| 0.0 | % |
Lombard, IL |
| 2004 |
| 1981 |
| 57,938 |
| 92.9 | % | 547 |
| N |
| 9.8 | % |
Mount Prospect, IL |
| 2004 |
| 1979 |
| 65,000 |
| 85.3 | % | 595 |
| Y |
| 12.7 | % |
Mundelein, IL |
| 2004 |
| 1990 |
| 44,700 |
| 79.8 | % | 490 |
| Y |
| 8.9 | % |
North Chicago, IL |
| 2004 |
| 1985 |
| 53,300 |
| 83.2 | % | 430 |
| N |
| 0.0 | % |
Plainfield I, IL |
| 2004 |
| 1998 |
| 53,800 |
| 88.1 | % | 399 |
| N |
| 3.3 | % |
Plainfield II, IL |
| 2005 |
| 2000 |
| 52,100 |
| 67.8 | % | 357 |
| N |
| 22.7 | % |
Schaumburg, IL |
| 2004 |
| 1988 |
| 31,160 |
| 86.8 | % | 321 |
| N |
| 5.6 | % |
Streamwood, IL |
| 2004 |
| 1982 |
| 64,305 |
| 73.8 | % | 570 |
| N |
| 4.4 | % |
Warrensville, IL |
| 2005 |
| 1977/89 |
| 48,796 |
| 82.5 | % | 378 |
| N |
| 0.0 | % |
Waukegan, IL |
| 2004 |
| 1977 |
| 79,750 |
| 78.8 | % | 692 |
| Y |
| 8.4 | % |
West Chicago, IL |
| 2004 |
| 1979 |
| 48,175 |
| 73.8 | % | 423 |
| Y |
| 0.0 | % |
Westmont, IL |
| 2004 |
| 1979 |
| 53,700 |
| 85.3 | % | 390 |
| Y |
| 0.0 | % |
Wheeling I, IL |
| 2004 |
| 1974 |
| 54,210 |
| 80.3 | % | 499 |
| N |
| 0.0 | % |
Wheeling II, IL |
| 2004 |
| 1979 |
| 67,825 |
| 67.7 | % | 612 |
| Y |
| 7.3 | % |
Woodridge, IL |
| 2004 |
| 1987 |
| 50,667 |
| 76.8 | % | 468 |
| N |
| 7.5 | % |
Indianapolis I, IN |
| 2004 |
| 1987 |
| 43,600 |
| 79.8 | % | 327 |
| N |
| 0.0 | % |
Indianapolis II, IN |
| 2004 |
| 1997 |
| 44,900 |
| 81.8 | % | 454 |
| Y |
| 15.6 | % |
Indianapolis III, IN |
| 2004 |
| 1999 |
| 60,850 |
| 67.7 | % | 496 |
| Y |
| 32.8 | % |
Indianapolis IV, IN |
| 2004 |
| 1976 |
| 62,105 |
| 67.0 | % | 535 |
| Y |
| 0.0 | % |
Indianapolis V, IN |
| 2004 |
| 1999 |
| 74,825 |
| 91.0 | % | 584 |
| Y |
| 33.6 | % |
Indianapolis VI, IN |
| 2004 |
| 1976 |
| 73,003 |
| 68.9 | % | 717 |
| Y |
| 0.0 | % |
Indianapolis VII, IN |
| 2004 |
| 1992 |
| 91,727 |
| 67.1 | % | 811 |
| Y |
| 6.4 | % |
Indianapolis VIII, IN |
| 2004 |
| 1975 |
| 80,000 |
| 62.5 | % | 703 |
| Y |
| 0.0 | % |
Indianapolis IX, IN |
| 2004 |
| 1976 |
| 61,732 |
| 62.5 | % | 544 |
| Y |
| 0.0 | % |
Baton Rouge I, LA |
| 1997 |
| 1980 |
| 35,450 |
| 77.4 | % | 331 |
| Y |
| 11.6 | % |
Baton Rouge II, LA |
| 1997 |
| 1980/1995 |
| 80,277 |
| 84.4 | % | 569 |
| Y |
| 40.5 | % |
Slidell, LA |
| 2001 |
| 1998 |
| 79,540 |
| 79.2 | % | 523 |
| Y |
| 46.6 | % |
Boston, MA |
| 2002 |
| 2001 |
| 60,695 |
| 81.1 | % | 630 |
| Y |
| 100.0 | % |
Leominster, MA |
| 1998 |
| 1987/88/00 |
| 53,823 |
| 74.1 | % | 500 |
| Y |
| 38.5 | % |
Medford, MA |
| 2007 |
| 2001 |
| 58,895 |
| 70.0 | % | 654 |
| N |
| 96.0 | % |
Baltimore, MD |
| 2001 |
| 1999/00 |
| 93,625 |
| 70.9 | % | 835 |
| Y |
| 45.4 | % |
California, MD |
| 2004 |
| 1998 |
| 77,840 |
| 89.1 | % | 723 |
| Y |
| 39.0 | % |
Gaithersburg, MD |
| 2005 |
| 1998 |
| 86,970 |
| 80.6 | % | 790 |
| Y |
| 42.0 | % |
Laurel, MD † |
| 2001 |
| 1978/99/00 |
| 162,097 |
| 90.2 | % | 1018 |
| N |
| 40.9 | % |
Temple Hills, MD |
| 2001 |
| 2000 |
| 97,250 |
| 80.0 | % | 825 |
| Y |
| 68.8 | % |
Grand Rapids, MI |
| 1996 |
| 1976 |
| 87,381 |
| 64.5 | % | 525 |
| Y |
| 0.0 | % |
Memphis I, TN |
| 2001 |
| 1999 |
| 86,075 |
| 91.6 | % | 622 |
| N |
| 51.3 | % |
Memphis II, TN |
| 2001 |
| 2000 |
| 72,210 |
| 86.6 | % | 544 |
| N |
| 46.2 | % |
Memphis III, TN |
| 2005 |
| 1983 |
| 39,790 |
| 83.7 | % | 365 |
| Y |
| 5.0 | % |
Memphis IV, TN |
| 2005 |
| 1986 |
| 38,950 |
| 94.3 | % | 330 |
| Y |
| 0.0 | % |
Memphis V, TN |
| 2005 |
| 1981 |
| 61,270 |
| 73.8 | % | 474 |
| Y |
| 0.0 | % |
Memphis VI, TN |
| 2006 |
| 1985/93 |
| 108,375 |
| 84.1 | % | 874 |
| Y |
| 0.0 | % |
Memphis VII, TN |
| 2006 |
| 1980/85 |
| 115,118 |
| 81.8 | % | 563 |
| Y |
| 0.0 | % |
Memphis VIII, TN † |
| 2006 |
| 1990 |
| 97,800 |
| 86.9 | % | 565 |
| Y |
| 0.0 | % |
Nashville I, TN |
| 2005 |
| 1984 |
| 109,090 |
| 62.5 | % | 686 |
| Y |
| 0.0 | % |
Nashville II, TN |
| 2005 |
| 1986/00 |
| 82,992 |
| 83.6 | % | 635 |
| Y |
| 13.2 | % |
Nashville III, TN |
| 2006 |
| 1985 |
| 101,800 |
| 63.3 | % | 599 |
| Y |
| 8.7 | % |
Nashville IV, TN |
| 2006 |
| 1986/00 |
| 102,600 |
| 89.9 | % | 712 |
| Y |
| 10.4 | % |
Austin, TX |
| 2005 |
| 2001 |
| 59,758 |
| 77.0 | % | 549 |
| Y |
| 70.0 | % |
Austin II, TX |
| 2006 |
| 2000/03 |
| 64,409 |
| 90.9 | % | 498 |
| Y |
| 54.6 | % |
Austin III, TX |
| 2006 |
| 2004 |
| 71,360 |
| 58.4 | % | 587 |
| N |
| 48.9 | % |
Baytown, TX |
| 2005 |
| 1981 |
| 39,150 |
| 84.4 | % | 380 |
| Y |
| 0.0 | % |
Bryan, TX |
| 2005 |
| 1994 |
| 60,650 |
| 69.2 | % | 498 |
| Y |
| 0.0 | % |
College Station, TX |
| 2005 |
| 1993 |
| 26,750 |
| 76.4 | % | 348 |
| N |
| 0.0 | % |
Dallas, TX |
| 2005 |
| 2000 |
| 59,905 |
| 79.3 | % | 568 |
| Y |
| 40.0 | % |
Denton, TX |
| 2006 |
| 1996 |
| 61,036 |
| 87.0 | % | 465 |
| Y |
| 3.2 | % |
El Paso I, TX |
| 2005 |
| 1980 |
| 60,034 |
| 86.1 | % | 552 |
| Y |
| 0.0 | % |
El Paso II, TX |
| 2005 |
| 1980 |
| 49,296 |
| 89.3 | % | 428 |
| Y |
| 0.0 | % |
El Paso III, TX |
| 2005 |
| 1980 |
| 71,500 |
| 85.3 | % | 649 |
| Y |
| 0.0 | % |
El Paso IV, TX |
| 2005 |
| 1983 |
| 73,776 |
| 47.7 | % | 584 |
| Y |
| 0.0 | % |
El Paso V, TX |
| 2005 |
| 1982 |
| 63,050 |
| 84.0 | % | 402 |
| Y |
| 0.0 | % |
El Paso VI, TX |
| 2005 |
| 1985 |
| 36,820 |
| 77.7 | % | 271 |
| Y |
| 0.0 | % |
El Paso VII, TX † |
| 2005 |
| 1982 |
| 35,800 |
| 85.2 | % | 19 |
| N |
| 0.0 | % |
Fort Worth, TX |
| 2005 |
| 2000 |
| 50,731 |
| 75.0 | % | 409 |
| Y |
| 40.0 | % |
Fort Worth II, TX |
| 2006 |
| 2003 |
| 72,125 |
| 61.5 | % | 665 |
| Y |
| 68.6 | % |
Frisco I, TX |
| 2005 |
| 1996 |
| 51,079 |
| 93.5 | % | 447 |
| Y |
| 17.4 | % |
Frisco II, TX |
| 2005 |
| 1998/02 |
| 71,539 |
| 74.8 | % | 514 |
| Y |
| 25.6 | % |
Frisco III, TX |
| 2006 |
| 2004 |
| 73,150 |
| 64.6 | % | 623 |
| Y |
| 93.6 | % |
Garland , TX |
| 2006 |
| 1991 |
| 70,500 |
| 79.5 | % | 450 |
| Y |
| 6.4 | % |
Garland II, TX |
| 2006 |
| 2004 |
| 68,675 |
| 56.5 | % | 484 |
| Y |
| 53.8 | % |
Greenville I , TX |
| 2005 |
| 2001/04 |
| 60,560 |
| 84.6 | % | 458 |
| Y |
| 30.6 | % |
Greenville II, TX |
| 2005 |
| 2001 |
| 45,850 |
| 71.5 | % | 320 |
| N |
| 40.5 | % |
Houston I, TX |
| 2005 |
| 1981 |
| 101,780 |
| 92.3 | % | 631 |
| Y |
| 0.0 | % |
Houston II, TX |
| 2005 |
| 1977 |
| 74,700 |
| 86.5 | % | 435 |
| Y |
| 0.0 | % |
Houston III, TX |
| 2005 |
| 1984 |
| 62,370 |
| 85.0 | % | 492 |
| Y |
| 0.0 | % |
Houston IV, TX |
| 2005 |
| 1987 |
| 44,175 |
| 94.4 | % | 401 |
| Y |
| 6.0 | % |
Houston V, TX † |
| 2006 |
| 1980/1997 |
| 127,570 |
| 74.9 | % | 932 |
| Y |
| 69.9 | % |
Keller, TX |
| 2006 |
| 2000 |
| 62,075 |
| 95.1 | % | 476 |
| Y |
| 23.7 | % |
La Porte, TX |
| 2005 |
| 1984 |
| 45,050 |
| 76.5 | % | 440 |
| Y |
| 19.0 | % |
Lewisville, TX |
| 2006 |
| 1996 |
| 58,750 |
| 68.1 | % | 428 |
| Y |
| 21.7 | % |
Mansfield, TX |
| 2006 |
| 2003 |
| 63,175 |
| 75.4 | % | 455 |
| Y |
| 46.8 | % |
McKinney, TX |
| 2005 |
| 1996 |
| 52,970 |
| 95.6 | % | 373 |
| Y |
| 12.6 | % |
McKinney II, TX |
| 2006 |
| 1996 |
| 70,275 |
| 89.5 | % | 546 |
| Y |
| 47.3 | % |
North Richland Hills, TX |
| 2005 |
| 2002 |
| 57,375 |
| 68.9 | % | 459 |
| Y |
| 62.0 | % |
Roanoke, TX |
| 2005 |
| 1996/01 |
| 59,600 |
| 88.3 | % | 483 |
| Y |
| 31.9 | % |
San Antonio, TX |
| 2005 |
| 2005 |
| 75,120 |
| 24.6 | % | 581 |
| Y |
| 79.0 | % |
San Antonio II, TX |
| 2006 |
| 2005 |
| 73,505 |
| 42.2 | % | 676 |
| N |
| 53.6 | % |
Sherman I, TX |
| 2005 |
| 1998 |
| 55,425 |
| 90.9 | % | 525 |
| Y |
| 20.0 | % |
Sherman II, TX |
| 2005 |
| 1996 |
| 48,625 |
| 92.3 | % | 394 |
| Y |
| 36.0 | % |
Spring, TX |
| 2006 |
| 1980/86 |
| 73,371 |
| 81.0 | % | 510 |
| Y |
| 29.4 | % |
Murray I, UT |
| 2005 |
| 1976 |
| 60,780 |
| 92.8 | % | 702 |
| N |
| 0.0 | % |
Murray II, UT |
| 2005 |
| 1978 |
| 47,246 |
| 92.0 | % | 350 |
| Y |
| 0.0 | % |
Murray III, UT † |
| 2005 |
| 1978 |
| 26,400 |
| 87.0 | % | 24 |
| Y |
| 0.0 | % |
Salt Lake City I, UT |
| 2005 |
| 1976 |
| 56,646 |
| 87.9 | % | 778 |
| Y |
| 0.0 | % |
Salt Lake City II, UT |
| 2005 |
| 1978 |
| 53,876 |
| 91.6 | % | 522 |
| Y |
| 0.0 | % |
Fredericksburg I, VA |
| 2005 |
| 2001/04 |
| 69,750 |
| 54.1 | % | 581 |
| N |
| 26.5 | % |
Fredericksburg II, VA |
| 2005 |
| 1998/01 |
| 61,618 |
| 57.2 | % | 510 |
| N |
| 100.0 | % |
Milwaukee, WI |
| 2004 |
| 1988 |
| 58,713 |
| 74.9 | % | 489 |
| Y |
| 0.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total/Weighted Average |
|
|
|
|
| 25,436,058 |
| 78.2 | % | 217,209 |
|
|
|
|
|
|
| Year Acquired/ |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Portage, MI (6) |
| 1996 |
| 1980 |
| 50,280 |
| 84.1 | % | 386 |
| N |
| 0.0 | % |
Romulus, MI |
| 1997 |
| 1997 |
| 42,050 |
| 72.1 | % | 339 |
| Y |
| 7.4 | % |
Wyoming, MI |
| 1996 |
| 1987 |
| 91,158 |
| 68.7 | % | 635 |
| N |
| 0.0 | % |
Gulfport, MS |
| 1997 |
| 1977/93 |
| 61,251 |
| 77.7 | % | 509 |
| Y |
| 33.5 | % |
Belmont, NC |
| 2001 |
| 1996/97/98 |
| 81,048 |
| 68.3 | % | 582 |
| N |
| 23.8 | % |
Burlington I, NC |
| 2001 |
| 1990/91/93/94/98 |
| 109,396 |
| 66.9 | % | 956 |
| N |
| 4.7 | % |
Burlington II, NC |
| 2001 |
| 1991 |
| 42,205 |
| 70.1 | % | 391 |
| Y |
| 12.1 | % |
Cary, NC |
| 2001 |
| 1993/94/97 |
| 111,772 |
| 74.2 | % | 788 |
| N |
| 7.3 | % |
Charlotte, NC |
| 1999 |
| 1999 |
| 69,000 |
| 82.6 | % | 736 |
| Y |
| 52.4 | % |
Fayetteville I, NC |
| 1997 |
| 1981 |
| 41,400 |
| 89.0 | % | 343 |
| N |
| 0.0 | % |
Fayetteville II, NC |
| 1997 |
| 1993/95 |
| 54,225 |
| 92.0 | % | 547 |
| Y |
| 11.9 | % |
Raleigh, NC |
| 1998 |
| 1994/95 |
| 48,675 |
| 80.5 | % | 413 |
| Y |
| 8.2 | % |
Brick, NJ |
| 1994 |
| 1981 |
| 51,740 |
| 66.8 | % | 430 |
| N |
| 0.0 | % |
Clifton, NJ |
| 2005 |
| 2001 |
| 105,550 |
| 79.6 | % | 1015 |
| Y |
| 85.5 | % |
Cranford, NJ |
| 1994 |
| 1987 |
| 91,250 |
| 78.4 | % | 851 |
| Y |
| 7.9 | % |
East Hanover, NJ |
| 1994 |
| 1983 |
| 107,579 |
| 70.0 | % | 970 |
| N |
| 1.6 | % |
Elizabeth, NJ |
| 2005 |
| 1925/97 |
| 38,910 |
| 87.2 | % | 671 |
| N |
| 0.0 | % |
Fairview, NJ |
| 1997 |
| 1989 |
| 27,925 |
| 73.8 | % | 448 |
| N |
| 100.0 | % |
Hamilton, NJ |
| 2006 |
| 1990 |
| 70,550 |
| 62.2 | % | 610 |
| Y |
| 0.0 | % |
Hoboken, NJ |
| 2005 |
| 1945/97 |
| 34,180 |
| 81.1 | % | 742 |
| N |
| 100.0 | % |
Linden, NJ |
| 1994 |
| 1983 |
| 100,325 |
| 66.1 | % | 1116 |
| N |
| 2.8 | % |
Morris Township, NJ (5) |
| 1997 |
| 1972 |
| 71,776 |
| 72.2 | % | 566 |
| Y |
| 1.3 | % |
Parsippany, NJ |
| 1997 |
| 1981 |
| 66,325 |
| 84.2 | % | 567 |
| Y |
| 6.9 | % |
Randolph, NJ |
| 2002 |
| 1998/99 |
| 52,565 |
| 78.5 | % | 554 |
| Y |
| 82.5 | % |
Sewell, NJ |
| 2001 |
| 1984/98 |
| 57,830 |
| 73.6 | % | 464 |
| N |
| 5.3 | % |
Albuquerque I, NM |
| 2005 |
| 1985 |
| 65,852 |
| 89.1 | % | 610 |
| Y |
| 3.2 | % |
Albuquerque II, NM |
| 2005 |
| 1985 |
| 58,798 |
| 81.8 | % | 524 |
| Y |
| 4.1 | % |
Albuquerque IV, NM |
| 2005 |
| 1986 |
| 57,536 |
| 83.9 | % | 514 |
| Y |
| 4.7 | % |
Carlsbad, NM |
| 2005 |
| 1975 |
| 39,999 |
| 91.7 | % | 342 |
| Y |
| 0.0 | % |
Deming, NM |
| 2005 |
| 1973/83 |
| 33,005 |
| 90.9 | % | 241 |
| Y |
| 0.0 | % |
Las Cruces, NM |
| 2005 |
| 1984 |
| 43,850 |
| 68.8 | % | 378 |
| Y |
| 3.1 | % |
Las Cruces, NM |
| 2008 |
| 2007 |
| 21,890 |
| 44.5 | % | 156 |
| N |
| 11.4 | % |
Lovington, NM |
| 2005 |
| 1975 |
| 15,750 |
| 76.7 | % | 261 |
| Y |
| 0.0 | % |
Silver City, NM |
| 2005 |
| 1972 |
| 26,975 |
| 74.8 | % | 239 |
| Y |
| 0.0 | % |
Truth or Consequences, NM |
| 2005 |
| 1977/99/00 |
| 24,010 |
| 74.3 | % | 172 |
| Y |
| 0.0 | % |
Las Vegas I, NV † |
| 2006 |
| 1986 |
| 48,218 |
| 76.4 | % | 378 |
| Y |
| 5.4 | % |
Las Vegas II, NV |
| 2006 |
| 1997 |
| 48,850 |
| 87.7 | % | 506 |
| N |
| 75.2 | % |
Jamaica, NY |
| 2001 |
| 2000 |
| 88,415 |
| 75.9 | % | 918 |
| Y |
| 30.7 | % |
New Rochelle, NY |
| 2005 |
| 1998 |
| 48,431 |
| 84.3 | % | 399 |
| N |
| 15.0 | % |
North Babylon, NY |
| 1998 |
| 1988/99 |
| 78,188 |
| 83.8 | % | 649 |
| N |
| 9.0 | % |
Riverhead, NY |
| 2005 |
| 1985/86/99 |
| 38,240 |
| 74.7 | % | 325 |
| N |
| 0.0 | % |
Southold, NY |
| 2005 |
| 1989 |
| 58,609 |
| 68.5 | % | 580 |
| N |
| 3.1 | % |
Boardman, OH |
| 1980 |
| 1980/89 |
| 65,495 |
| 65.9 | % | 513 |
| Y |
| 24.0 | % |
Canton I, OH |
| 2005 |
| 1979/87 |
| 39,750 |
| 72.9 | % | 407 |
| N |
| 0.0 | % |
Canton II, OH |
| 2005 |
| 1997 |
| 26,200 |
| 69.7 | % | 191 |
| Y |
| 0.0 | % |
Centerville I, OH |
| 2004 |
| 1976 |
| 86,390 |
| 64.2 | % | 639 |
| Y |
| 0.0 | % |
Centerville II, OH |
| 2004 |
| 1976 |
| 43,350 |
| 68.0 | % | 305 |
| N |
| 0.0 | % |
Cleveland I, OH |
| 2005 |
| 1997/99 |
| 45,950 |
| 82.6 | % | 335 |
| Y |
| 4.9 | % |
Cleveland II, OH |
| 2005 |
| 2000 |
| 58,425 |
| 55.2 | % | 569 |
| Y |
| 0.0 | % |
Columbus , OH |
| 2006 |
| 1999 |
| 72,155 |
| 61.7 | % | 598 |
| Y |
| 26.1 | % |
Dayton I, OH |
| 2004 |
| 1978 |
| 43,100 |
| 69.0 | % | 341 |
| N |
| 0.0 | % |
Dayton II, OH |
| 2005 |
| 1989/00 |
| 48,149 |
| 75.2 | % | 387 |
| Y |
| 1.7 | % |
Euclid I, OH |
| 1988* |
| 1988 |
| 46,910 |
| 65.0 | % | 428 |
| Y |
| 22.2 | % |
Euclid II, OH |
| 1988* |
| 1988 |
| 47,275 |
| 70.8 | % | 377 |
| Y |
| 0.0 | % |
Grove City, OH |
| 2006 |
| 1997 |
| 89,290 |
| 75.5 | % | 776 |
| Y |
| 16.9 | % |
Hilliard, OH |
| 2006 |
| 1995 |
| 89,715 |
| 66.7 | % | 779 |
| Y |
| 24.5 | % |
Lakewood, OH |
| 1989* |
| 1989 |
| 39,337 |
| 77.9 | % | 459 |
| Y |
| 24.6 | % |
Louisville, OH |
| 2005 |
| 1988/90 |
| 53,960 |
| 74.0 | % | 383 |
| N |
| 0.0 | % |
Marblehead, OH |
| 2005 |
| 1988/98 |
| 52,300 |
| 77.5 | % | 383 |
| Y |
| 0.0 | % |
Mason, OH |
| 1998 |
| 1981 |
| 33,900 |
| 77.1 | % | 281 |
| Y |
| 0.0 | % |
Mentor, OH |
| 2005 |
| 1983/99 |
| 51,225 |
| 93.7 | % | 366 |
| N |
| 16.1 | % |
Miamisburg, OH |
| 2004 |
| 1975 |
| 59,930 |
| 68.2 | % | 430 |
| Y |
| 0.0 | % |
Middleburg Heights, OH |
| 1980* |
| 1980 |
| 93,025 |
| 81.9 | % | 662 |
| N |
| 3.8 | % |
North Canton I, OH |
| 1979* |
| 1979 |
| 45,400 |
| 80.8 | % | 318 |
| N |
| 0.0 | % |
North Canton II, OH |
| 1983* |
| 1983 |
| 44,140 |
| 80.8 | % | 345 |
| Y |
| 15.8 | % |
North Olmsted I, OH |
| 1979* |
| 1979 |
| 48,665 |
| 74.7 | % | 441 |
| N |
| 7.0 | % |
North Olmsted II, OH |
| 1988* |
| 1988 |
| 47,850 |
| 79.9 | % | 398 |
| Y |
| 14.2 | % |
North Randall, OH |
| 1998* |
| 1998/02 |
| 80,099 |
| 76.1 | % | 800 |
| N |
| 90.8 | % |
Perry, OH |
| 2005 |
| 1992/97 |
| 63,700 |
| 68.4 | % | 420 |
| Y |
| 0.0 | % |
Reynoldsburg, OH |
| 2006 |
| 1979 |
| 66,895 |
| 66.8 | % | 663 |
| Y |
| 0.0 | % |
Strongsville, OH |
| 2007 |
| 1978 |
| 43,727 |
| 81.2 | % | 402 |
| N |
| 100.0 | % |
Warrensville Heights, OH |
| 1980* |
| 1980/82/98 |
| 90,281 |
| 64.2 | % | 710 |
| Y |
| 0.0 | % |
|
| Year Acquired/ |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Westlake, OH |
| 2005 |
| 2001 |
| 62,750 |
| 80.8 | % | 452 |
| Y |
| 6.1 | % |
Willoughby, OH |
| 2005 |
| 1997 |
| 34,064 |
| 72.3 | % | 268 |
| Y |
| 10.1 | % |
Youngstown, OH |
| 1977* |
| 1977 |
| 65,950 |
| 70.1 | % | 521 |
| Y |
| 1.2 | % |
Levittown, PA |
| 2001 |
| 2000 |
| 76,180 |
| 78.9 | % | 653 |
| Y |
| 36.3 | % |
Philadelphia, PA |
| 2001 |
| 1999 |
| 97,689 |
| 80.7 | % | 961 |
| N |
| 47.2 | % |
Alcoa, TN |
| 2005 |
| 1986 |
| 42,325 |
| 81.3 | % | 359 |
| N |
| 0.0 | % |
Antioch, TN |
| 2005 |
| 1985/98 |
| 76,160 |
| 73.5 | % | 617 |
| Y |
| 8.5 | % |
Cordova I, TN |
| 2005 |
| 1987 |
| 54,225 |
| 71.6 | % | 385 |
| Y |
| 0.0 | % |
Cordova II, TN |
| 2006 |
| 1995 |
| 67,750 |
| 84.7 | % | 714 |
| N |
| 7.2 | % |
Knoxville I, TN |
| 1997 |
| 1984 |
| 29,337 |
| 76.1 | % | 293 |
| Y |
| 6.8 | % |
Knoxville II, TN |
| 1997 |
| 1985 |
| 38,000 |
| 81.2 | % | 333 |
| Y |
| 6.9 | % |
Knoxville III, TN |
| 1998 |
| 1991 |
| 45,736 |
| 74.1 | % | 451 |
| Y |
| 6.9 | % |
Knoxville IV, TN |
| 1998 |
| 1983 |
| 58,752 |
| 69.9 | % | 436 |
| N |
| 1.1 | % |
Knoxville V, TN |
| 1998 |
| 1977 |
| 42,790 |
| 77.8 | % | 370 |
| N |
| 0.0 | % |
Knoxville VI, TN |
| 2005 |
| 1975 |
| 63,440 |
| 84.0 | % | 586 |
| Y |
| 0.0 | % |
Knoxville VII, TN |
| 2005 |
| 1983 |
| 55,094 |
| 71.2 | % | 446 |
| Y |
| 0.0 | % |
Knoxville VIII, TN |
| 2005 |
| 1978 |
| 95,868 |
| 67.8 | % | 769 |
| Y |
| 0.0 | % |
Memphis I, TN |
| 2001 |
| 1999 |
| 90,700 |
| 82.6 | % | 696 |
| N |
| 50.3 | % |
Memphis II, TN |
| 2001 |
| 2000 |
| 71,885 |
| 78.2 | % | 558 |
| N |
| 46.2 | % |
Memphis III, TN |
| 2005 |
| 1983 |
| 40,807 |
| 80.1 | % | 350 |
| N |
| 6.4 | % |
Memphis IV, TN |
| 2005 |
| 1986 |
| 38,750 |
| 72.6 | % | 322 |
| Y |
| 4.3 | % |
Memphis V, TN |
| 2005 |
| 1981 |
| 60,120 |
| 69.8 | % | 494 |
| Y |
| 0.0 | % |
Memphis VI, TN |
| 2006 |
| 1985/93 |
| 108,771 |
| 81.2 | % | 872 |
| Y |
| 3.3 | % |
Memphis VII, TN |
| 2006 |
| 1980/85 |
| 115,303 |
| 68.7 | % | 578 |
| N |
| 0.0 | % |
Memphis VIII, TN † |
| 2006 |
| 1990 |
| 96,060 |
| 71.8 | % | 557 |
| Y |
| 0.0 | % |
Nashville I, TN |
| 2005 |
| 1984 |
| 103,430 |
| 77.2 | % | 693 |
| Y |
| 0.0 | % |
Nashville II, TN |
| 2005 |
| 1986/00 |
| 83,484 |
| 68.4 | % | 632 |
| Y |
| 6.5 | % |
Nashville III, TN |
| 2006 |
| 1985 |
| 101,475 |
| 78.1 | % | 622 |
| Y |
| 5.2 | % |
Nashville IV, TN |
| 2006 |
| 1986/00 |
| 102,425 |
| 83.8 | % | 722 |
| N |
| 7.0 | % |
Austin I, TX |
| 2005 |
| 2001 |
| 59,595 |
| 80.2 | % | 537 |
| Y |
| 58.7 | % |
Austin II, TX |
| 2006 |
| 2000/03 |
| 65,401 |
| 83.2 | % | 594 |
| Y |
| 38.8 | % |
Austin III, TX |
| 2006 |
| 2004 |
| 70,610 |
| 73.8 | % | 579 |
| Y |
| 85.4 | % |
Baytown, TX |
| 2005 |
| 1981 |
| 38,950 |
| 76.6 | % | 362 |
| Y |
| 0.0 | % |
Bryan, TX |
| 2005 |
| 1994 |
| 60,450 |
| 76.2 | % | 495 |
| Y |
| 0.0 | % |
College Station, TX |
| 2005 |
| 1993 |
| 26,550 |
| 68.4 | % | 346 |
| N |
| 0.0 | % |
Dallas, TX |
| 2005 |
| 2000 |
| 58,582 |
| 88.7 | % | 542 |
| Y |
| 26.6 | % |
Denton, TX |
| 2006 |
| 1996 |
| 60,836 |
| 89.2 | % | 463 |
| Y |
| 3.9 | % |
El Paso I, TX |
| 2005 |
| 1980 |
| 59,652 |
| 80.4 | % | 509 |
| N |
| 0.9 | % |
El Paso II, TX |
| 2005 |
| 1980 |
| 48,704 |
| 96.3 | % | 412 |
| Y |
| 0.0 | % |
El Paso III, TX |
| 2005 |
| 1980 |
| 71,276 |
| 84.0 | % | 595 |
| Y |
| 2.0 | % |
El Paso IV, TX |
| 2005 |
| 1983 |
| 67,058 |
| 73.7 | % | 510 |
| Y |
| 3.2 | % |
El Paso V, TX |
| 2005 |
| 1982 |
| 62,300 |
| 69.0 | % | 398 |
| Y |
| 0.0 | % |
El Paso VI, TX |
| 2005 |
| 1985 |
| 36,620 |
| 79.8 | % | 258 |
| N |
| 0.0 | % |
El Paso VII, TX † |
| 2005 |
| 1982 |
| 34,545 |
| 80.3 | % | 13 |
| N |
| 0.0 | % |
Fort Worth I, TX |
| 2005 |
| 2000 |
| 49,778 |
| 75.4 | % | 406 |
| Y |
| 27.0 | % |
Fort Worth II, TX |
| 2006 |
| 2003 |
| 72,925 |
| 83.8 | % | 656 |
| N |
| 49.0 | % |
Frisco I, TX |
| 2005 |
| 1996 |
| 50,854 |
| 83.1 | % | 433 |
| Y |
| 17.5 | % |
Frisco II, TX |
| 2005 |
| 1998/02 |
| 71,239 |
| 76.3 | % | 513 |
| Y |
| 23.2 | % |
Frisco III, TX |
| 2006 |
| 2004 |
| 75,215 |
| 78.6 | % | 609 |
| Y |
| 88.0 | % |
Garland I, TX |
| 2006 |
| 1991 |
| 70,100 |
| 80.6 | % | 654 |
| Y |
| 4.4 | % |
Garland II, TX |
| 2006 |
| 2004 |
| 68,425 |
| 77.4 | % | 472 |
| Y |
| 39.6 | % |
Greenville I, TX |
| 2005 |
| 2001/04 |
| 59,385 |
| 72.8 | % | 452 |
| Y |
| 28.8 | % |
Greenville II, TX |
| 2005 |
| 2001 |
| 44,900 |
| 79.0 | % | 319 |
| N |
| 36.3 | % |
Houston I, TX |
| 2005 |
| 1981 |
| 100,820 |
| 86.7 | % | 632 |
| Y |
| 0.0 | % |
Houston II, TX |
| 2005 |
| 1977 |
| 71,300 |
| 90.5 | % | 391 |
| Y |
| 0.0 | % |
Houston III, TX |
| 2005 |
| 1984 |
| 61,145 |
| 74.0 | % | 463 |
| Y |
| 4.3 | % |
Houston IV, TX |
| 2005 |
| 1987 |
| 43,775 |
| 75.7 | % | 380 |
| Y |
| 6.2 | % |
Houston V, TX † |
| 2006 |
| 1980/1997 |
| 126,080 |
| 80.6 | % | 1010 |
| Y |
| 55.2 | % |
Keller, TX |
| 2006 |
| 2000 |
| 61,885 |
| 75.7 | % | 487 |
| Y |
| 21.1 | % |
La Porte, TX |
| 2005 |
| 1984 |
| 45,050 |
| 81.6 | % | 432 |
| Y |
| 18.5 | % |
Lewisville, TX |
| 2006 |
| 1996 |
| 58,140 |
| 63.2 | % | 426 |
| Y |
| 19.3 | % |
Mansfield, TX |
| 2006 |
| 2003 |
| 63,075 |
| 78.7 | % | 495 |
| Y |
| 38.4 | % |
McKinney I, TX |
| 2005 |
| 1996 |
| 46,940 |
| 90.8 | % | 366 |
| Y |
| 9.0 | % |
McKinney II, TX |
| 2006 |
| 1996 |
| 70,050 |
| 88.7 | % | 540 |
| Y |
| 46.3 | % |
North Richland Hills, TX |
| 2005 |
| 2002 |
| 57,175 |
| 81.2 | % | 433 |
| N |
| 47.6 | % |
Roanoke, TX |
| 2005 |
| 1996/01 |
| 59,300 |
| 91.7 | % | 448 |
| Y |
| 30.0 | % |
San Antonio I, TX |
| 2005 |
| 2005 |
| 73,530 |
| 83.5 | % | 575 |
| Y |
| 78.5 | % |
San Antonio II, TX |
| 2006 |
| 2005 |
| 73,280 |
| 78.2 | % | 671 |
| N |
| 82.3 | % |
San Antonio III, TX |
| 2007 |
| 2006 |
| 71,775 |
| 79.0 | % | 565 |
| N |
| 87.4 | % |
Sherman I, TX |
| 2005 |
| 1998 |
| 54,975 |
| 70.4 | % | 509 |
| N |
| 20.9 | % |
Sherman II, TX |
| 2005 |
| 1996 |
| 48,425 |
| 74.4 | % | 392 |
| Y |
| 30.9 | % |
Spring, TX |
| 2006 |
| 1980/86 |
| 72,751 |
| 73.4 | % | 536 |
| Y |
| 14.1 | % |
|
| Year Acquired/ |
| Year |
| Rentable |
|
|
|
|
| Manager |
| % Climate |
|
Facility Location |
| Developed (1) |
| Built |
| Square Feet |
| Occupancy (2) |
| Units |
| Apartment (3) |
| Controlled (4) |
|
Murray I, UT |
| 2005 |
| 1976 |
| 60,180 |
| 77.7 | % | 647 |
| Y |
| 0.0 | % |
Murray II, UT † |
| 2005 |
| 1978 |
| 71,222 |
| 90.2 | % | 372 |
| N |
| 2.6 | % |
Salt Lake City I, UT |
| 2005 |
| 1976 |
| 56,446 |
| 74.0 | % | 732 |
| Y |
| 0.0 | % |
Salt Lake City II, UT |
| 2005 |
| 1978 |
| 53,676 |
| 74.5 | % | 504 |
| Y |
| 0.0 | % |
Fredericksburg I, VA |
| 2005 |
| 2001/04 |
| 69,475 |
| 74.2 | % | 606 |
| N |
| 21.4 | % |
Fredericksburg II, VA |
| 2005 |
| 1998/01 |
| 61,207 |
| 63.2 | % | 568 |
| N |
| 100.0 | % |
Milwaukee, WI |
| 2004 |
| 1988 |
| 58,515 |
| 76.4 | % | 485 |
| Y |
| 0.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total/Weighted Average (367 Facilities) |
| 23,748,702 |
| 75.2 | % | 204,815 |
|
|
|
|
|
* Denotes facilities developed by us.
† Denotes facilities that contain a materialsignificant amount of commercial rentable square footage. All of this commercial space, which was developed in conjunction with the self-storage units, is located within or adjacent to our self-storage facilities and is managed by our self-storage facility managers. As of December 31, 2006,2009, there was a totalan aggregate of approximately 753,000449,000 rentable square feet of commercial space at these facilities.
(1) Represents the year acquired for those facilities acquired from a third party or the year developed for those facilities developed by us.
(2) Represents occupied square feet divided by total rentable square feet at December 31, 2006.2009.
(3) Indicates whether a facility has an on-site apartment where a manager resides.
(4) Represents the percentage of rentable square feet in climate-controlled units.
(5) We do not own the land at this facility. We leased the land pursuant to a ground lease that expires in 2008,2013, but have nineeight five-year renewal options.
(6) We have ground leases for certain small parcels of land adjacent to these facilities that expire between 20072010 and 2015.
31
Our growth has been achieved by internal growth and by adding facilities to our portfolio each year through acquisitions and development. The tables set forth below show the average occupancy, annual rent per occupied square foot, average occupied square feet and total revenues for our facilities owned as of December 31, 20062009, and for each of the last fivethree years, grouped by the year end during which we first owned or operated the facility.
Our Facilities by Year Acquired - Average OccupancyOccupied Square Feet (2)
|
|
|
| Current |
| Average Occupancy During the Twelve Months Ended |
| ||||||||
|
| Number of |
| Rentable |
| December 31, (2) |
| ||||||||
Year Acquired (1) |
| Facilities |
| Square Feet |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
|
1996 or earlier |
| 41 |
| 2,599,851 |
| 80.9 | % | 81.2 | % | 83.5 | % | 83.4 | % | 82.5 | % |
1997 |
| 46 |
| 2,699,212 |
| 81.0 | % | 82.8 | % | 84.1 | % | 83.7 | % | 81.9 | % |
1998 |
| 24 |
| 1,413,392 |
| 81.3 | % | 84.2 | % | 85.0 | % | 85.4 | % | 83.3 | % |
1999 |
| 2 |
| 138,054 |
| 81.3 | % | 82.0 | % | 88.0 | % | 92.4 | % | 86.0 | % |
2000 |
| 6 |
| 418,024 |
| 81.7 | % | 85.5 | % | 87.6 | % | 87.5 | % | 85.0 | % |
2001 |
| 27 |
| 2,107,610 |
| 75.7 | % | 80.6 | % | 84.9 | % | 85.4 | % | 83.6 | % |
2002 |
| 7 |
| 405,966 |
| 83.3 | % | 82.9 | % | 83.9 | % | 81.9 | % | 78.0 | % |
2003 |
| 1 |
| 42,475 |
|
|
| 20.4 | % | 48.7 | % | 74.9 | % | 76.4 | % |
2004 |
| 46 |
| 3,114,879 |
|
|
|
|
| 77.6 | % | 77.9 | % | 77.0 | % |
2005 |
| 139 |
| 7,898,830 |
|
|
|
|
|
|
| 80.3 | % | 80.3 | % |
2006 |
| 60 |
| 4,597,765 |
|
|
|
|
|
|
|
|
| 75.6 | % |
All Facilities Owned as of |
| 399 |
| 25,436,058 |
| 79.9 | % | 82.1 | % | 84.0 | % | 82.2 | % | 80.2 | % |
|
|
|
| Rentable Square |
| Average Occupancy |
| ||||
Year Acquired (1) |
| # of Facilities |
| Feet |
| 2009 |
| 2008 |
| 2007 |
|
2006 and earlier |
| 349 |
| 22,345,852 |
| 75.9 | % | 80.0 | % | 79.7 | % |
2007 |
| 17 |
| 1,318,265 |
| 77.2 | % | 76.1 | % | 71.3 | % |
2008 |
| 1 |
| 84,585 |
| 72.3 | % | 69.5 | % | — |
|
2009 |
| — |
| — |
| — |
| — |
| — |
|
All Facilities Owned as of December 31, 2009 |
| 367 |
| 23,748,702 |
| 75.9 | % | 79.8 | % | 79.5 | % |
Our Facilities by Year Acquired - Annual Rent Per Occupied Square Foot (2)
|
|
|
| Rent per Square Foot |
| |||||||
Year Acquired (1) |
| # of Facilities |
| 2009 |
| 2008 |
| 2007 |
| |||
|
|
|
|
|
|
|
|
|
| |||
2006 and earlier |
| 349 |
| $ | 11.70 |
| $ | 11.45 |
| $ | 11.48 |
|
2007 |
| 17 |
| 12.20 |
| 12.29 |
| 11.29 |
| |||
2008 |
| 1 |
| 22.13 |
| 21.12 |
| — |
| |||
2009 |
| — |
| — |
| — |
| — |
| |||
|
|
|
|
|
|
|
|
|
| |||
All Facilities Owned as of December 31, 2009 |
| 367 |
| $ | 11.76 |
| $ | 11.52 |
| $ | 11.47 |
|
(1) For facilities developed by us, “Year Acquired” represents the year in which such facilities were acquired by our operating partnership from an affiliated entity, which in some cases is later than the year developed.
(2) Determined by dividing the sum of the month-end occupied square feet for the group of facilities for each twelve-month period by the sum of their month-end rentable square feet for the period.
Our Facilities by Year Acquired - Annual Rent Per Occupied Square Foot
|
|
|
| Annual Rent Per Occupied Square Foot For the Twelve Months Ended |
| |||||||||||||
|
| Number of |
| December 31, (2) |
| |||||||||||||
Year Acquired (1) |
| Facilities |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
| |||||
1996 or earlier |
| 41 |
| $ | 10.79 |
| $ | 10.59 |
| $ | 10.68 |
| $ | 10.95 |
| $ | 11.41 |
|
1997 |
| 46 |
| $ | 9.04 |
| $ | 9.21 |
| $ | 9.62 |
| $ | 9.98 |
| $ | 10.51 |
|
1998 |
| 24 |
| $ | 8.82 |
| $ | 8.89 |
| $ | 9.23 |
| $ | 9.69 |
| $ | 10.84 |
|
1999 |
| 2 |
| $ | 7.66 |
| $ | 8.25 |
| $ | 9.52 |
| $ | 10.78 |
| $ | 11.90 |
|
2000 |
| 6 |
| $ | 13.33 |
| $ | 13.26 |
| $ | 13.31 |
| $ | 14.39 |
| $ | 15.51 |
|
2001 |
| 27 |
| $ | 10.88 |
| $ | 10.12 |
| $ | 10.58 |
| $ | 11.02 |
| $ | 11.63 |
|
2002 |
| 7 |
| $ | 14.41 |
| $ | 13.31 |
| $ | 13.52 |
| $ | 13.88 |
| $ | 14.89 |
|
2003 |
| 1 |
|
|
| $ | 8.87 |
| $ | 13.00 |
| $ | 13.14 |
| $ | 14.15 |
| |
2004 |
| 46 |
|
|
|
|
| $ | 12.37 |
| $ | 10.70 |
| $ | 10.98 |
| ||
2005 |
| 139 |
|
|
|
|
|
|
| $ | 8.84 |
| $ | 9.82 |
| |||
2006 |
| 60 |
|
|
|
|
|
|
|
|
| $ | 9.89 |
| ||||
All Facilities Owned as of |
| 399 |
| $ | 10.13 |
| $ | 10.04 |
| $ | 10.47 |
| $ | 10.33 |
| $ | 10.65 |
|
(1) For facilities developed by us, “Year Acquired” represents the year in which such facilities were acquired by our operating partnership from an affiliated entity, which in some cases is later than the year developed.
(2) Determined by dividing the aggregate rental revenue for each twelve-month period by the average of the month-end occupied square feet for the period. Rental revenue includes customer rental revenues, access, administrative and late fees and revenues from auctions, but does not include ancillary revenues generated at our facilities.
|
|
|
| Average Occupied Square Feet For the Twelve Months Ended |
| ||||||||
|
| Number of |
| December 31, (2) |
| ||||||||
Year Acquired (1) |
| Facilities |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
|
1996 or earlier |
| 41 |
| 2,101,927 |
| 2,112,101 |
| 2,170,658 |
| 2,167,726 |
| 2,144,120 |
|
1997 |
| 46 |
| 2,162,901 |
| 2,212,059 |
| 2,247,471 |
| 2,257,945 |
| 2,211,498 |
|
1998 |
| 24 |
| 1,187,768 |
| 1,244,593 |
| 1,257,058 |
| 1,216,370 |
| 1,169,165 |
|
1999 |
| 2 |
| 113,112 |
| 114,052 |
| 121,776 |
| 127,585 |
| 118,722 |
|
2000 |
| 6 |
| 296,103 |
| 321,549 |
| 366,338 |
| 365,632 |
| 355,386 |
|
2001 |
| 27 |
| 1,544,456 |
| 1,701,143 |
| 1,790,554 |
| 1,800,901 |
| 1,762,365 |
|
2002 |
| 7 |
| 153,790 |
| 339,036 |
| 340,977 |
| 332,649 |
| 316,742 |
|
2003 |
| 1 |
|
|
| 3,606 |
| 20,694 |
| 31,801 |
| 32,431 |
|
2004 |
| 46 |
|
|
|
|
| 402,889 |
| 2,425,283 |
| 2,398,574 |
|
2005 |
| 139 |
|
|
|
|
|
|
| 3,157,146 |
| 6,350,294 |
|
2006 |
| 60 |
|
|
|
|
|
|
|
|
| 2,622,221 |
|
All Facilities Owned as of |
| 399 |
| 7,560,057 |
| 8,048,139 |
| 8,718,415 |
| 13,883,038 |
| 19,481,518 |
|
Facilities by Year Acquired - Average Occupied Square Feet (2)
|
|
|
| Total Revenues for the Twelve Months Ended December 31, (3) |
| |||||||||||||
|
| Number of |
| (Dollars in thousands) |
| |||||||||||||
Year Acquired (1) |
| Facilities |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
| |||||
1996 or earlier |
| 41 |
| $ | 22,683 |
| $ | 22,372 |
| $ | 23,193 |
| $ | 23,737 |
| $ | 24,455 |
|
1997 |
| 46 |
| 19,561 |
| 20,382 |
| 21,617 |
| 22,530 |
| 23,236 |
| |||||
1998 |
| 24 |
| 10,475 |
| 11,061 |
| 11,604 |
| 11,782 |
| 12,674 |
| |||||
1999 |
| 2 |
| 866 |
| 941 |
| 1,159 |
| 1,376 |
| 1,413 |
| |||||
2000 |
| 6 |
| 3,947 |
| 4,265 |
| 4,875 |
| 5,260 |
| 5,512 |
| |||||
2001 |
| 27 |
| 16,800 |
| 17,224 |
| 18,949 |
| 19,842 |
| 20,493 |
| |||||
2002 |
| 7 |
| 2,216 |
| 4,513 |
| 4,609 |
| 4,616 |
| 4,716 |
| |||||
2003 |
| 1 |
|
|
| 32 |
| 269 |
| 418 |
| 459 |
| |||||
2004 |
| 46 |
|
|
|
|
| 4,984 |
| 25,952 |
| 26,329 |
| |||||
2005 |
| 139 |
|
|
|
|
|
|
| 27,894 |
| 62,343 |
| |||||
2006 |
| 60 |
|
|
|
|
|
|
|
|
| 25,924 |
| |||||
All Facilities Owned as of |
| 399 |
| $ | 76,548 |
| $ | 80,790 |
| $ | 91,259 |
| $ | 143,407 |
| $ | 207,554 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other Adjustments (4) |
|
|
| 37 |
| 24 |
| 607 |
| 4,201 |
| 5,558 |
| |||||
Total Revenues (5) |
|
|
| $ | 76,585 |
| $ | 80,814 |
| $ | 91,866 |
| $ | 147,608 |
| $ | 213,112 |
|
|
|
|
| Average Occupied Square Feet |
| ||||
Year Acquired (1) |
| # of Facilities |
| 2009 |
| 2008 |
| 2007 |
|
|
|
|
|
|
|
|
|
|
|
2006 and earlier |
| 349 |
| 16,964,729 |
| 17,957,743 |
| 17,910,241 |
|
2007 |
| 17 |
| 1,017,882 |
| 1,003,961 |
| 934,799 |
|
2008 |
| 1 |
| 61,113 |
| 58,844 |
| — |
|
2009 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
All Facilities Owned as of December 31, 2009 |
| 367 |
| 18,043,724 |
| 19,020,548 |
| 18,845,040 |
|
Facilities by Year Acquired - Total Revenues (dollars in thousands) (3)
|
|
|
| Total Revenues |
| |||||||
Year Acquired (1) |
| # of Facilities |
| 2009 |
| 2008 |
| 2007 |
| |||
|
|
|
|
|
|
|
|
|
| |||
2006 and earlier |
| 349 |
| $ | 202,393 |
| $ | 210,066 |
| $ | 202,161 |
|
2007 |
| 17 |
| 12,852 |
| 12,682 |
| 4,891 |
| |||
2008 |
| 1 |
| 1,404 |
| 1,309 |
| — |
| |||
2009 |
| — |
| — |
| — |
| — |
| |||
|
|
|
|
|
|
|
|
|
| |||
All Facilities Owned as of December 31, 2009 |
| 367 |
| $ | 216,649 |
| $ | 224,057 |
| $ | 207,052 |
|
(1) For facilities developed by us, “Year Acquired” represents the year in which such facilities were acquired by our operating partnership from an affiliated entity, which in some cases is later than the year developed.
(2) Represents the average of the aggregate month-end occupied square feet for the twelve-month period for each group of facilities.
(3) Represents the result obtained by multiplying annual renttotal income per occupied square foot by the average occupied square feet for the twelve-month period for each group of facilities.
(4) Between 2001 and 2004, amounts represent primarily ancillary revenues generated by three facilities contributed by certain Amsdell Entities to our operating partnership prior to our IPO, which are reflected in the historical financial statements but excluded from the above analysis which accounts only for rental revenues and other property related income. For 2005 and 2006, amounts represent ancillary revenue and Rising Tide management fees.
(5) Represents total revenues as presented in our historical financial statements.29
Planned Renovations and Improvements
We have a capital improvement and property renovation program that includes office upgrades, adding climate control at selected units, construction of parking areas, safety and security enhancements, and general facility upgrades. For 2007,2010, we anticipate spending approximately $7 million to $10$9 million associated with these recurring capital expenditures and expect to enhance the safety and improve the aesthetic appeal of our facilities.
Option Facilities
In connection with our IPO, we entered into an option agreement with Rising Tide Development to acquire 18 self-storage facilities, currently consisting of 14 facilities owned by Rising Tide Development, one facility that Rising Tide Development has the right to acquire from an unaffiliated third party, and three facilities that we have acquired since our IPO pursuant to the exercise of our options. Rising Tide Development may elect not to acquire the option facility it currently has under contract, which would reduce the number of facilities available to us pursuant to the option agreement. These 15 facilities either are currently under development or not yet fully stabilized. Any purchase of an option facility by us will be at a purchase price equal to the lower of (i) a price determined by multiplying in-place net operating income at the time of purchase by 12.5 and (ii) the fair market value of the option facility as determined by an appraisal process involving third party appraisers. The option will become exercisable with respect to each particular self-storage facility when that facility achieves an occupancy of 85% at the end of the month for three consecutive months, and will expire in October 2008. We expect that the purchase option will become exercisable with respect to a majority of the option facilities by October 2008. The determination to purchase any of the option facilities will be made by the independent members of our Board of Trustees. If the option is not exercised for any facility within the option period, Rising Tide Development will be required to move expeditiously to sell the facility to an unrelated third party. Rising Tide Development received no cash consideration for entering into the option agreement.
Since the completion of our IPO, we exercised our option to purchase three option facilities for an aggregate purchase price of approximately $17.4 million, consisting of an aggregate of $6.8 million in units in our operating partnership and $10.6 million in cash.
We are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties.
We are involved in routine litigation arisingclaims from time to time, including the proceeding identified below, which arise in the ordinary course of business. In the opinion of management, we have made adequate provision for potential liabilities, if any, arising from any such matters. However, litigation is inherently unpredictable, and the costs and other effects of pending or future litigation, governmental investigations, legal and administrative cases and proceedings (whether civil or criminal), settlements, judgments and investigations, claims and changes in any such matters, could have a material adverse effect on our business, nonefinancial condition and operating results.
On November 4, 2009, our Operating Partnership was sued in the Delaware Court of Chancery by Robert J. Amsdell, Barry L. Amsdell, and Amsdell Holdings I, Inc. (collectively, the “Amsdell Plaintiffs”). The Amsdell Plaintiffs’ lawsuit seeks to compel our Operating Partnership to indemnify the Amsdell Plaintiffs for losses and expenses allegedly incurred by the Amsdell Plaintiffs from legal proceedings filed against the Amsdell Plaintiffs, which we believeproceedings alleged, inter alia, that the Amsdell Plaintiffs breached an agreement to be material.purchase certain real estate located in Brighton, Massachusetts in 2001. We are vigorously defending against this action. The matter is presently in the discovery phase and no trial date has been set by the Court.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSRESERVED
No matters were submitted to a vote
Table of our shareholders during the fourth quarter of 2006.Contents
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common shares began trading on the New York Stock Exchange under the symbol “YSI” on October 22, 2004.
As of March 13, 2007,December 31, 2009, there were approximately 2754 registered record holders of our common shares. This figure does not include beneficial owners who hold shares in nominee name. The following table shows the high and low closing prices per share for our common shares, as reported by the New York Stock Exchange, and the cash dividends declared with respect to such shares:
| High |
| Low |
| Cash Dividends |
| ||||
2004 |
|
|
|
|
|
|
| |||
Fourth quarter (October 22 through December 31) |
| $ | 17.45 |
| $ | 16.50 |
| $ | 0.2009 |
|
2005 |
|
|
|
|
|
|
| |||
First quarter |
| $ | 17.40 |
| $ | 16.02 |
| $ | 0.28 |
|
Second quarter |
| $ | 19.92 |
| $ | 16.83 |
| $ | 0.28 |
|
Third quarter |
| $ | 21.76 |
| $ | 19.15 |
| $ | 0.28 |
|
Fourth quarter |
| $ | 21.73 |
| $ | 19.35 |
| $ | 0.29 |
|
2006 |
|
|
|
|
|
|
| |||
First quarter |
| $ | 22.28 |
| $ | 19.94 |
| $ | 0.29 |
|
Second quarter |
| $ | 19.75 |
| $ | 16.05 |
| $ | 0.29 |
|
Third quarter |
| $ | 21.94 |
| $ | 18.51 |
| $ | 0.29 |
|
Fourth quarter |
| $ | 22.66 |
| $ | 20.35 |
| $ | 0.29 |
|
|
|
|
|
|
| Cash Dividends |
| |||
|
| High |
| Low |
| Declared |
| |||
2008 |
|
|
|
|
|
|
| |||
First quarter |
| $ | 11.37 |
| $ | 7.86 |
| $ | 0.18 |
|
Second quarter |
| $ | 13.38 |
| $ | 11.14 |
| $ | 0.18 |
|
Third quarter |
| $ | 13.17 |
| $ | 10.96 |
| $ | 0.18 |
|
Fourth quarter |
| $ | 11.99 |
| $ | 3.62 |
| $ | 0.025 |
|
2009 |
|
|
|
|
|
|
| |||
First quarter |
| $ | 5.03 |
| $ | 1.40 |
| $ | 0.025 |
|
Second quarter |
| $ | 4.93 |
| $ | 2.12 |
| $ | 0.025 |
|
Third quarter |
| $ | 6.83 |
| $ | 4.23 |
| $ | 0.025 |
|
Fourth quarter |
| $ | 7.60 |
| $ | 5.70 |
| $ | 0.025 |
|
Since our initial quarter as a publicly-traded REIT, we have made regular quarterly distributions to our shareholders. Distributions to shareholders are usually taxable as ordinary income, although a portion of the distribution may be designated as capital gain or may constitute a tax-free return of capital. Annually, we provide each of our shareholders a statement detailing distributions paid during the preceding year and their characterization as ordinary income, capital gain or return of capital. The characterization of the Company’sour dividends for 20062009 was 35.75% ordinary income, 0.78%100% capital gain distribution and 63.47% return of capital.distribution.
We intend to continue to declare quarterly distributions. However, we cannot provide any assurance as to the amount or timing of future distributions. Under our new revolving credit facility, beginning in the fourth quarter of 2008 we are restricted from paying distributions on our common shares that would exceed an amount equal to the greater of (i) a certain percentage95% of our funds from operations, and (ii) such amount as may be necessary to maintain our REIT status.
To the extent that we make distributions in excess of our earnings and profits, as computed for federal income tax purposes, these distributions will represent a return of capital, rather than a dividend, for federal income tax purposes. Distributions that are treated as a return of capital for federal income tax purposes generally will not be taxable as a dividend to a U.S. shareholder, but will reduce the shareholder’s basis in its shares (but not below zero) and therefore can result in the shareholder having a higher gain upon a subsequent sale of such shares. Return of capital distributions in excess of a shareholder’s basis generally will be treated as gain from the sale of such shares for federal income tax purposes.
In October 2005, we completed a follow-on public offering of our common shares, generating net proceeds of approximately $378.7 million, after deducting underwriting discount and commissions and expenses of the offering. A portion of these proceeds was
used to repay certain outstanding indebtedness, including (i) $108.3 million to repay the outstanding balance under our then existing revolving credit facility, and (ii) $39.8 million to repay outstanding mortgage loans secured by 37 of our facilities. Net proceeds of approximately $110.2 million were used to fund the acquisition of 19 self-storage facilities. The remaining net proceeds of approximately $120.4 million were used for the acquisition and development of additional self-storage facilities, budgeted capital improvements and general corporate purposes.
We completed the initial public offering of our common shares in October 2004, generating net proceeds of approximately $425.0 million, after deducting underwriting discount and commissions and expenses of the offering. A portion of these proceeds was used to repay (i) approximately $135.1 million of our existing term loan provided by an affiliate of Lehman Brothers, (ii) $16.6 million, plus $0.9 million for prepayment penalties, to repay mortgage indebtedness secured by our facilities, (iii) $23.0 million to repay the outstanding balance of a loan made to us by Robert J. Amsdell and Barry L. Amsdell, and (iv) $221.8 million to acquire 46 self-storage facilities.
36
Share Performance Graph
The Securities and Exchange CommissionSEC requires us to present a chart comparing the cumulative total shareholder return on our common shares with the cumulative total shareholder return of (i) a broad equity index and (ii) a published industry or peer group index. The following chart compares the cumulative total shareholder return for our common shares with the cumulative shareholder return of companies on (i) the S&P 500 Index, (ii) the Russell 2000 and (iii) the NAREIT All Equity REIT Index as provided by NAREIT for the period beginning with October 22,December 31, 2004 (the first closing share price following the initial public offering of our common shares) and ending December 31, 2006.2009.
|
| Period Ending |
| ||||||||||
Index |
| 10/22/2004 |
| 12/31/2004 |
| 6/30/2005 |
| 12/31/2005 |
| 6/30/2006 |
| 12/31/2006 |
|
U-Store-It Trust |
| 100.00 |
| 108.44 |
| 120.81 |
| 133.37 |
| 122.93 |
| 137.82 |
|
S&P 500 |
| 100.00 |
| 110.97 |
| 110.65 |
| 116.30 |
| 119.45 |
| 134.67 |
|
Russell 2000 |
| 100.00 |
| 115.08 |
| 113.64 |
| 120.32 |
| 130.20 |
| 142.42 |
|
NAREIT All Equity REIT Index |
| 100.00 |
| 111.12 |
| 118.21 |
| 124.64 |
| 140.74 |
| 168.34 |
|
|
| Period Ending |
| ||||||||||
Index |
| 12/31/04 |
| 12/31/05 |
| 12/31/06 |
| 12/31/07 |
| 12/31/08 |
| 12/31/09 |
|
U-Store-It Trust |
| 100.00 |
| 128.39 |
| 132.66 |
| 63.23 |
| 32.90 |
| 55.53 |
|
S&P 500 |
| 100.00 |
| 104.91 |
| 121.48 |
| 128.16 |
| 80.74 |
| 102.11 |
|
Russell 2000 |
| 100.00 |
| 104.55 |
| 123.76 |
| 121.82 |
| 80.66 |
| 102.58 |
|
NAREIT All Equity REIT Index |
| 100.00 |
| 112.16 |
| 151.49 |
| 127.72 |
| 79.53 |
| 101.79 |
|
The following table provides information about repurchases of the Company’s common shares during the three-month period ended December 31, 2009:
|
| Total Number of |
| Average Price Paid |
| Total Number of |
| Maximum Number |
|
|
|
|
|
|
|
|
|
|
|
October |
| 139 |
| 6.15 |
| N/A |
| 3,000,000 |
|
November |
| N/A |
| N/A |
| N/A |
| 3,000,000 |
|
December |
| 543 |
| 7.21 |
| N/A |
| 3,000,000 |
|
|
|
|
|
|
|
|
|
|
|
Total |
| 682 |
|
|
| N/A |
| 3,000,000 |
|
(1) Represents shares of common stock withheld by the Company upon the vesting of restricted shares to cover employee tax obligations.
(2) On June 27, 2007, the Company announced that the Board of Trustees approved a share repurchase program for up to 3.0 million of the Company’s outstanding common shares. Unless terminated earlier by resolution of the Board of Trustees, the program will expire when the number of authorized shares has been repurchased. For the three-month period ended December 31, 2009, the Company made no repurchases under this program.
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected financial and operating data on a historical consolidated basis for the Company, and on a combined historical basis for Acquiport/Amsdell (the “Predecessor”).Company. The selected historical financial information as of December 31, 2006 and 2005 and for each of the periods indicated in the five-year period ended December 31, 2006 were2009 was derived from the Company’s and the Predecessor’s financial statements. Historical information for the Company has not been presented prior to October 21, 2004, the date on which the Company consummated the mergers of Amsdell Partners, Inc. and High Tide LLC with and into the Company, because during the period prior to the mergers, the Company did not have material corporate activity.
The Predecessor’s combined historical financial information includes the following entities, which are the entities referred to collectively in this Form 10-K as Acquiport/Amsdell, for periods prior to October 21, 2004: the operating partnership (formerly known as Acquiport/Amsdell I Limited Partnership, which is sometimes referred to herein as “Acquiport I”) and its consolidated subsidiaries, Acquiport/Amsdell III, LLC (“Acquiport III”), Acquiport/Amsdell IV, LLC, Acquiport/Amsdell V, LLC, Acquiport/Amsdell VI, LLC, Acquiport/Amsdell VII, LLC, and USI II, LLC. The Predecessor also includes three additional facilities- Lakewood, OH, Lake Worth, FL, and Vero Beach I, FL which were contributed to our operating partnership in connection with the IPO. All intercompany balances and transactions are eliminated in consolidation and combination. At October 20, 2004, the Predecessor owned 155 self-storage facilities.
The following data should be read in conjunction with the audited financial statements and notes thereto of the Company and the Predecessor and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this report.
|
| The Company |
| The Predecessor (1) |
| ||||||||||||||
|
|
|
|
|
| Period |
| Period |
|
|
|
|
| ||||||
|
|
|
|
|
| October 21, |
| January 1, |
|
|
|
|
| ||||||
|
|
|
|
|
| through |
| through |
|
|
|
|
| ||||||
|
| Year Ended December 31, |
| December 31, |
| October 20, |
| Year Ended December 31, |
| ||||||||||
|
| 2006 |
| 2005 |
| 2004 |
| 2004 |
| 2003 |
| 2002 |
| ||||||
|
|
|
| (as restated) |
| (as restated) |
| (as restated) |
| (as restated) |
| (as restated) |
| ||||||
|
|
|
| (6) |
| (6) |
| (6) |
| (6) |
| (6) |
| ||||||
|
| (in thousands, except per share data) |
| ||||||||||||||||
Statement of Operations Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rental income |
| $ | 197,753 |
| $ | 137,202 |
| $ | 21,410 |
| $ | 65,722 |
| $ | 76,898 |
| $ | 72,719 |
|
Other property related income |
| 14,902 |
| 10,001 |
| 1,452 |
| 3,211 |
| 3,916 |
| 3,866 |
| ||||||
Other — related party |
| 457 |
| 405 |
| 71 |
| — |
| — |
| — |
| ||||||
Total revenues |
| 213,112 |
| 147,608 |
| 22,933 |
| 68,933 |
| 80,814 |
| 76,585 |
| ||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Property operating expenses |
| 86,547 |
| 55,462 |
| 9,767 |
| 26,170 |
| 28,089 |
| 26,087 |
| ||||||
Property operating expenses — related party |
| 69 |
| 43 |
| — |
| — |
| — |
| — |
| ||||||
Depreciation |
| 64,729 |
| 39,949 |
| 5,800 |
| 16,528 |
| 19,494 |
| 19,656 |
| ||||||
Asset write-off |
| 305 |
| — |
| — |
| — |
| — |
| — |
| ||||||
General and administrative |
| 21,675 |
| 17,786 |
| 4,140 |
| — |
| — |
| — |
| ||||||
General and administrative — related party |
| 613 |
| 736 |
| 114 |
| — |
| — |
| — |
| ||||||
Management fees — related party (2) |
| — |
| — |
| — |
| 3,689 |
| 4,361 |
| 4,115 |
| ||||||
Total operating expenses |
| 173,938 |
| 113,976 |
| 19,821 |
| 46,387 |
| 51,944 |
| 49,858 |
| ||||||
Operating income |
| 39,174 |
| 33,632 |
| 3,112 |
| 22,546 |
| 28,870 |
| 26,727 |
| ||||||
Interest: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense on loans |
| (46,125 | ) | (32,370 | ) | (4,428 | ) | (19,385 | ) | (15,128 | ) | (15,944 | ) | ||||||
Loan procurement amortization expense |
| (1,998 | ) | (2,057 | ) | (286 | ) | (5,958 | ) | (1,296 | ) | (1,364 | ) | ||||||
Early extinguishment of debt |
| (1,907 | ) | (93 | ) | (7,012 | ) | — |
| — |
| — |
| ||||||
Costs incurred to acquire management company — related party |
| — |
| — |
| (22,152 | ) | — |
| — |
| — |
| ||||||
Interest income |
| 1,341 |
| 2,405 |
| 37 |
| 69 |
| 12 |
| — |
| ||||||
Other |
| 191 |
| (47 | ) | (78 | ) | — |
| — |
| — |
| ||||||
Income (loss) before minority interests |
| (9,324 | ) | 1,470 |
| (30,807 | ) | (2,728 | ) | 12,458 |
| 9,419 |
| ||||||
Minority interests |
| 773 |
| (113 | ) | 898 |
| — |
| — |
| — |
| ||||||
Income (loss) from continuing operations |
| (8,551 | ) | 1,357 |
| (29,909 | ) | (2,728 | ) | 12,458 |
| 9,419 |
| ||||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Income from operations |
| — |
| 32 |
| — |
| — |
| 171 |
| 312 |
| ||||||
Gain on sale of storage facilities |
| — |
| 179 |
| — |
| — |
| 3,329 |
| — |
| ||||||
Income from discontinued operations |
| — |
| 211 |
| — |
| — |
| 3,500 |
| 312 |
| ||||||
Net income (loss) (5) |
| $ | (8,551 | ) | $ | 1,568 |
| $ | (29,909 | ) | $ | (2,728 | ) | $ | 15,958 |
| $ | 9,731 |
|
Basic and diluted earnings (loss) per share from continuing operations |
| $ | (0.15 | ) | $ | 0.04 |
| $ | (0.80 | ) |
|
|
|
|
|
| |||
Basic and diluted earnings per share from discontinued operations |
| $ | — |
| $ | — |
| $ | — |
|
|
|
|
|
|
| |||
Basic and diluted earnings (loss) per share |
| $ | (0.15 | ) | $ | 0.04 |
| $ | (0.80 | ) |
|
|
|
|
|
| |||
Weighted average basic common shares outstanding (3) |
| 57,287 |
| 42,120 |
| 37,478 |
|
|
|
|
|
|
| ||||||
Weighted average diluted common shares outstanding (3) |
| 57,287 |
| 42,203 |
| 37,478 |
|
|
|
|
|
|
| ||||||
Distributions declared per share and unit (4) |
| $ | 1.16 |
| $ | 1.13 |
| $ | 0.2009 |
|
|
|
|
|
|
|
|
| For the year ended December 31, |
| |||||||||||||
|
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||
|
| (Dollars and shares in thousands, except per share data) |
| |||||||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
| |||||
Rental income |
| $ | 200,630 |
| $ | 208,439 |
| $ | 192,275 |
| $ | 177,098 |
| $ | 123,579 |
|
Other property related income |
| 16,659 |
| 15,700 |
| 15,329 |
| 13,484 |
| 9,063 |
| |||||
Other - related party |
| — |
| — |
| 365 |
| 457 |
| 405 |
| |||||
Total revenues |
| 217,289 |
| 224,139 |
| 207,969 |
| 191,039 |
| 133,047 |
| |||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
| |||||
Property operating expenses |
| 93,945 |
| 95,156 |
| 88,628 |
| 77,883 |
| 50,170 |
| |||||
Property operating expenses - related party |
| — |
| — |
| 59 |
| 69 |
| 43 |
| |||||
Depreciation and amortization |
| 70,832 |
| 73,751 |
| 64,672 |
| 59,334 |
| 37,200 |
| |||||
Asset write-off |
| — |
| — |
| — |
| 305 |
| — |
| |||||
Lease abandonment |
| — |
| — |
| 1,316 |
| — |
| — |
| |||||
General and administrative |
| 22,569 |
| 24,964 |
| 21,966 |
| 21,675 |
| 17,786 |
| |||||
General and administrative - related party |
| — |
| — |
| 337 |
| 613 |
| 736 |
| |||||
Total operating expenses |
| 187,346 |
| 193,871 |
| 176,978 |
| 159,879 |
| 105,935 |
| |||||
OPERATING INCOME |
| 29,943 |
| 30,268 |
| 30,991 |
| 31,160 |
| 27,112 |
| |||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest: |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense on loans |
| (45,269 | ) | (52,014 | ) | (54,108 | ) | (45,628 | ) | (31,907 | ) | |||||
Loan procurement amortization expense |
| (2,339 | ) | (1,929 | ) | (1,772 | ) | (1,972 | ) | (2,045 | ) | |||||
Early extinguishment of debt |
| — |
| — |
| — |
| (1,907 | ) | (93 | ) | |||||
Interest income |
| 681 |
| 153 |
| 401 |
| 1,336 |
| 2,404 |
| |||||
Other |
| (33 | ) | 94 |
| 118 |
| 191 |
| (47 | ) | |||||
Total other expense |
| (46,960 | ) | (53,696 | ) | (55,361 | ) | (47,980 | ) | (31,688 | ) | |||||
LOSS FROM CONTINUING OPERATIONS |
| (17,017 | ) | (23,428 | ) | (24,370 | ) | (16,820 | ) | (4,576 | ) | |||||
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Income from discontinued operations |
| 2,546 |
| 6,810 |
| 7,606 |
| 7,496 |
| 6,078 |
| |||||
Net gain on disposition of discontinued operations |
| 14,139 |
| 19,720 |
| 2,517 |
| — |
| 179 |
| |||||
Total discontinued operations |
| 16,685 |
| 26,530 |
| 10,123 |
| 7,496 |
| 6,257 |
| |||||
NET INCOME (LOSS) |
| (332 | ) | 3,102 |
| (14,247 | ) | (9,324 | ) | 1,681 |
| |||||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONROLLING INTERESTS |
|
|
|
|
|
|
|
|
|
|
| |||||
Noncontrolling interests in the Operating Partnership |
| 60 |
| (310 | ) | 1,170 |
| 773 |
| (113 | ) | |||||
Noncontrolling interest in subsidiaries |
| (665 | ) | — |
| — |
| — |
| — |
| |||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY |
| $ | (937 | ) | $ | 2,792 |
| $ | (13,077 | ) | $ | (8,551 | ) | $ | 1,568 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic and diluted loss per share from continuing operations attributable to common shareholders |
| $ | (0.24 | ) | $ | (0.37 | ) | $ | (0.67 | ) | $ | (0.60 | ) | $ | (0.58 | ) |
Basic and diluted earnings per share from discontinued operations attributable to common shareholders |
| $ | 0.23 |
| $ | 0.42 |
| $ | 0.45 |
| $ | 0.45 |
| $ | 0.62 |
|
Basic and diluted earnings (loss) per share attributable to common shareholders |
| $ | (0.01 | ) | $ | 0.05 |
| $ | (0.22 | ) | $ | (0.15 | ) | $ | 0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted-average basic and diluted shares outstanding (1) |
| 70,988 |
| 57,621 |
| 57,497 |
| 57,287 |
| 42,120 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
AMOUNTS ATTRIBUTABLE TO THE COMPANY’S COMMON SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Loss from continuing operations |
| $ | (16,754 | ) | $ | (21,589 | ) | $ | (38,787 | ) | $ | (34,474 | ) | $ | (24,455 | ) |
Total discontinued operations |
| 15,817 |
| 24,381 |
| 25,710 |
| 25,923 |
| 26,023 |
| |||||
Net income (loss) |
| $ | (937 | ) | $ | 2,792 |
| $ | (13,077 | ) | $ | (8,551 | ) | $ | 1,568 |
|
|
| The Company |
| The Predecessor (1) |
| |||||||||||||
|
|
|
|
|
| Period |
| Period |
|
|
|
|
| |||||
|
|
|
|
|
| October 21, |
| January 1, |
|
|
|
|
| |||||
|
|
|
|
|
| through |
| through |
|
|
|
|
| |||||
|
| Year Ended December 31, |
| December 31, |
| October 20, |
| Year Ended December 31, |
| |||||||||
|
| 2006 |
| 2005 |
| 2004 |
| 2004 |
| 2003 |
| 2002 |
| |||||
|
|
|
| (as restated) |
| (as restated) |
| (as restated) |
| (as restated) |
| (as restated) |
| |||||
|
|
|
| (6) |
| (6) |
| (6) |
| (6) |
| (6) |
| |||||
|
| (in thousands, except per share data) |
| |||||||||||||||
Balance Sheet Data (as of end of period): |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Storage facilities, net |
| $ | 1,566,815 |
| $ | 1,246,295 |
| $ | 729,155 |
|
|
| $ | 395,599 |
| $ | 411,232 |
|
Total assets |
| 1,615,339 |
| 1,476,321 |
| 774,272 |
|
|
| 410,636 |
| 420,098 |
| |||||
Revolving credit facility |
| 90,500 |
| — |
| — |
|
|
| — |
| — |
| |||||
Unsecured term loan |
| 200,000 |
| — |
| — |
|
|
| — |
| — |
| |||||
Mortgage loans and notes payable |
| 588,930 |
| 669,282 |
| 380,496 |
|
|
| 271,571 |
| 270,413 |
| |||||
Total liabilities |
| 930,948 |
| 714,157 |
| 406,243 |
|
|
| 280,743 |
| 279,267 |
| |||||
Minority interests |
| 56,898 |
| 63,695 |
| 10,804 |
|
|
| — |
| — |
| |||||
Shareholders’/owners’ equity |
| 627,493 |
| 698,469 |
| 357,225 |
|
|
| 129,893 |
| 140,831 |
| |||||
Total liabilities and shareholders’/owners’ equity |
| 1,615,339 |
| 1,476,321 |
| 774,272 |
|
|
| 410,636 |
| 420,098 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Number of facilities (end of period) |
| 399 |
| 339 |
| 201 |
| 155 |
| 155 |
| 159 |
| |||||
Total rentable square feet (end of period) |
| 25,436 |
| 20,828 |
| 12,978 |
| 9,683 |
| 9,863 |
| 10,050 |
| |||||
Occupancy (end of period) |
| 78.2 | % | 81.2 | % | 82.2 | % | 85.2 | % | 82.6 | % | 79.2 | % | |||||
Cash dividends declared per share (4) |
| $ | 1.16 |
| $ | 1.13 |
| $ | 0.2009 |
|
|
|
|
|
|
| ||
|
| At December 31, |
| |||||||||||||
|
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||
|
| (in thousands, except per share data) |
| |||||||||||||
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
Storage facilities, net |
| $ | 1,430,533 |
| $ | 1,559,958 |
| $ | 1,647,118 |
| $ | 1,566,815 |
| $ | 1,246,295 |
|
Total assets |
| 1,598,870 |
| 1,597,659 |
| 1,687,831 |
| 1,615,339 |
| 1,476,321 |
| |||||
Revolving credit facility |
| — |
| 172,000 |
| 219,000 |
| 90,500 |
| — |
| |||||
Unsecured term loan |
| — |
| 200,000 |
| 200,000 |
| 200,000 |
| — |
| |||||
Secured term loan |
| 200,000 |
| 57,419 |
| 47,444 |
| — |
| — |
| |||||
Mortgage loans and notes payable |
| 569,026 |
| 548,085 |
| 561,057 |
| 588,930 |
| 669,282 |
| |||||
Total liabilities |
| 814,146 |
| 1,028,705 |
| 1,083,230 |
| 930,948 |
| 714,157 |
| |||||
Noncontrolling interest in the Operating Partnership |
| 45,394 |
| 46,026 |
| 48,982 |
| 107,606 |
| 108,313 |
| |||||
U-Store-It Trust shareholders’ equity |
| 695,309 |
| 522,928 |
| 555,619 |
| 576,785 |
| 653,851 |
| |||||
Noncontrolling interests in subsidiaries |
| 44,021 |
| — |
| — |
| — |
| — |
| |||||
Total liabilities and equity |
| 1,598,870 |
| 1,597,659 |
| 1,687,831 |
| 1,615,339 |
| 1,476,321 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
Number of facilities |
| 367 |
| 387 |
| 409 |
| 399 |
| 339 |
| |||||
Total rentable square feet |
| 23,749 |
| 24,973 |
| 26,119 |
| 25,436 |
| 20,828 |
| |||||
Occupancy percentage |
| 75.2 | % | 78.9 | % | 79.5 | % | 78.2 | % | 81.2 | % | |||||
Cash dividends declared per share (2) |
| $ | 0.100 |
| $ | 0.565 |
| $ | 1.05 |
| $ | 1.16 |
| $ | 1.13 |
|
(1) Represents historical financial data of our operating partnership, including three additional facilities acquired by our operating partnership from certain of the Amsdell Entities in connection with the IPO. See Note 1 to the Consolidated and Combined Financial Statements.
(2) Prior to the IPO, management fees to related parties were paid to U-Store-It Mini Warehouse Co., the prior manager of our self-storage facilities that was acquired at the time of our IPO.
(3)Excludes 5,198,855 operating partnership units issued at our IPO and in connection with the acquisition of facilities subsequent to our IPO. Operating partnership units have been excluded from the earnings per share calculations as there would be no effect on the earnings per share since, upon conversion, the minority interests’noncontrolling interests in the Operating Partnership’s share of income would also be added back to net income.income (loss).
(4)(2) The Company announced a pro rata dividend of $0.2009 per common share on November 24, 2004, full quarterly dividends of $0.28 per common share on March 2, 2005;2005, May 31, 2005 and August 24, 2005 and2005; dividends of $0.29 per common share on December 1, 2005;2005, February 22, 2006;2006, April 24, 2006;2006, August 23, 2006, and November 3, 2006.2006, February 21, 2007, May 8, 2007, and August 14, 2007; dividends of $0.18 per common share on December 13, 2007, February 27, 2008, May 7, 2008, and August 6, 2008; and dividends of $0.025 per common share on December 11, 2008, January 22, 2009, April 22, 2009, July 22, 2009, October 22, 2009 and December 5, 2009.
(5)36 For the period from October 21, 2004 through December 31, 2004, amount includes a one-time management contract termination charge
(6) The Company has restated its consolidated and combined financial statements for the year ended December 31, 2005, the period October 21, 2004 to December 31, 2004, and the Predecessor’s financial statements for the period January 1, 2004 to October 20, 2004. See Note 2 to the financial statements included elsewhere herein. The Predecessor’s financial statements have also been restated for the years ended December 31, 2003 and 2002.
40
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis gives effect to the restatements discussed in Note 2 to the consolidated and combined financial statements.
The following discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. The Company makes certain statements in this section that are forward-looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements, see the section in this report entitled “Forward-Looking Statements.” Certain risk factors may cause actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. For a discussion of such risk factors, see the section in this report entitled “Risk Factors.”
Overview
On October 27, 2004, the Company completed its IPO, pursuant to which it sold an aggregate of 28,750,000 common shares (including 3,750,000 shares pursuant to the exercise of the underwriters’ over-allotment option) at an offering price of $16.00 per share. The IPO resulted in gross proceeds to the Company of $460.0 million. On October 7, 2005, the Company completed a follow-on public offering, pursuant to which it sold an aggregate of 19,665,000 common shares (including 2,565,000 shares pursuant to the exercise of the underwriters’ over-allotment option) at an offering price of $20.35 per share, for gross proceeds of approximately $400.2 million.
The Company is an integrated self-storage real estate company, which means that it has in-house capabilities in the operation, design, development, leasing, and acquisition of self-storage facilities. The Company has elected to be taxed as a REIT for federal tax purposes. At December 31, 20062009 and 2005,2008, the Company owned 399367 and 339387 self-storage facilities, respectively, totaling approximately 25.423.7 million and 20.825.0 million rentable square feet, respectively.
The Company derives revenues principally from rents received from its customers who rent units at its self-storage facilities under month-to-month leases. Therefore, our operating results depend materially on our ability to retain our existing customers and lease our available self-storage units to new customers while maintaining and, where possible, increasing our pricing levels. In addition, our operating results depend on the ability of our customers to make required rental payments to us. We believe that our decentralized approach to the management and operation of our facilities, which places an emphasis on local, market level oversight and control, allows us to respond quickly and effectively to changes in local market conditions, where appropriate increasing rents while maintaining occupancy levels, or increasing occupancy levels while maintaining pricing levels.
The Company typically experiences minor seasonal fluctuations in the occupancy levels of our facilities, which are generally slightly higher during the summer months due to increased moving activity.
The United States has recently experienced an economic downturn that has resulted in higher unemployment, shrinking demand for products, large-scale business failures and tight credit markets. Our results of operations may be sensitive to changes in overall economic conditions that impact consumer spending, including discretionary spending, as well as to increased bad debts due to recessionary pressures. A continuation of ongoing adverse economic conditions affecting disposable consumer income, such as employment levels, business conditions, interest rates, tax rates, fuel and energy costs, and other matters could reduce consumer spending or cause consumers to shift their spending to other products and services. A general reduction in the level of discretionary spending or shifts in consumer discretionary spending could adversely affect our growth and profitability.
In the future, the Company intends to focus on increasing our internal growth and selectively pursuing targeted acquisitions and developments of self-storage facilities. We intend to incur additional debt in connection with any such future acquisitions or developments.
The Company has one reportable operating segment: we own, operate, develop, and acquire self-storage facilities.
The Company’s self-storage facilities are located in major metropolitan and rural areas and have numerous tenants per facility. All our operations are within the United States and noNo single tenant represents 1% or morea significant concentration of our revenues. The facilities in Florida, California, IllinoisTexas and New JerseyIllinois provided approximately 19%18%, 16%15%, 7%10% and 6%7%, respectively, of total revenues for the year ended December 31, 2006.2009.
Summary of Critical Accounting Policies and Estimates
Set forth below is a summary of the accounting policies that management believes are critical to the preparation of the consolidated and combined financial statements included in this report. Certain of the accounting policies used in the preparation of these consolidated and combined financial statements are particularly important for an understanding of the financial position and results of operations presented in the historical consolidated and combined financial statements included in this report. A summary of significant accounting policies is also provided in the notes to our consolidated and combined financial statements (See Note 32 to the
Consolidated and Combined Financial Statements) consolidated financial statements). These policies require the application of judgment and assumptions by management and, as a result, are subject to a degree of uncertainty. Due to this uncertainty, actual results could differ materially from estimates calculated and utilized by management.
Basis of Presentation
The accompanying consolidated and combined financial statements include all of the accounts of the Company, and its majority-owned and/or controlled subsidiaries. The portion of these entities not owned by the operatingCompany is presented as noncontrolling interests as of and during the periods consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation.
When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”), and if the Company is deemed to be the primary beneficiary, in accordance with authoritative guidance issued by the FASB on the consolidation of variable interest entities. When an entity is not deemed to be a VIE, the Company considers the provisions of additional FASB guidance which determines whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates (i) entities that are VIEs and of which the Company is deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Company controls and the wholly-owned subsidiaries oflimited partners do not have the operating partnership. The mergers of Amsdell Partners, Inc. and High Tide LLC with and intoability to dissolve the entity or remove the Company and the property interests contributed to the operating partnership by the Predecessor, have been accounted for as a reorganization of entities under common control and accordingly, were recorded at the Predecessor’s historical cost basis. Prior to the combination, the Company had no significant operations; therefore, the combined operations for the period prior to October 21, 2004, represent the operations of the Predecessor.without cause nor substantive participating rights.
For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this Annual Report on Form 10-K.
Self-Storage Facilities
The Company records self-storage facilities at cost less accumulated depreciation. Depreciation on the buildings and equipment is recorded on a straight-line basis over their estimated useful lives, which range from five to 40 years. Expenditures for significant renovations or improvements that extend the useful life of assets are capitalized. Repairs and maintenance costs are expensed as incurred. During 2009, 2008 and 2007, approximately $0.1 million, $0.5 million and $0.4 million of expense was incurred in conjunction with property related damage as a result of insured events such as fires, floods and hurricanes.
When facilities are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. When a portfolio of facilities is acquired, the purchase price is allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates, which take into account the relative size, age and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land, buildings and improvements and estimates of depreciated replacement cost of equipment.
In allocating the purchase price, the Company determines whether the acquisition includes intangible assets or liabilities.liabilities, which may include the value of in-place leases, above or below market lease intangibles, and tenant relationships. Substantially all of the leases in place at acquired facilities are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date no portion of the purchase price has been allocated to above-orabove- or below-market lease intangibles. The Company also considers whether the in-place, at market leases for any facility represent an intangible asset. Based upon the Company’s experience, leases of this nature generally re-let in less than 30 days and lease-up costs are minimal. Accordingly, the Company has no intangible assets recorded for in-place, at market leases as of December 31, 2006 and 2005. Additionally, toTo date, no intangible asset has been recorded for the value of tenant relationships, because the Company does not have any concentrations of significant tenants and the average tenant turnover is fairly frequent. The Company recorded a $6.8 million intangible asset to recognize the value of in-place leases related to its acquisition of 14 self-storage facilities during the third quarter of 2007. Subsequently, during the quarter ended March 31, 2008, the Company acquired a finite-lived intangible asset valued at approximately $1.0 million as part of its acquisition of one self-storage facility. This asset represents the value of in-place leases at the time of acquisition.
Long-lived assets classified as “held for use” are reviewed for impairment when events and circumstances such as declines in occupancy and operating results indicate that there may be an impairment. The carrying valuesvalue of these long-lived assets areis compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets. Anassets to determine if the property’s basis is recoverable. If a property’s basis is not considered recoverable, an impairment loss is recorded ifto the extent the net carrying value of the asset exceeds the fair value based on its undiscounted future net operating cash flows attributable to the asset and circumstances indicate that the carrying value of the real estate asset may not be recoverable.value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. The Company recorded an assetThere were no impairment charge of $2.3 million for the year ended December 31, 2005 related to hurricane damage (See Note 17 to the Consolidatedlosses recognized in accordance with these procedures during 2009, 2008 and Combined Financial Statements).2007.
The Company considers long-lived assets to be “held for sale” upon satisfaction of the following criteria: (a) management commits to a plan to sell a facility (or group of facilities), (b) the facility is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such facilities, (c) an active program to locate a buyer and other actions required to complete the plan to sell the facility have been initiated, (d) the sale of the facility is probable and transfer of the asset is expected to be completed within one year, (e) the facility is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
Typically these criteria are all met when the relevant asset is under contract, significant non-refundable deposits have been made by the potential buyer, the assets are immediately available for transfer and there are no contingencies related to the sale that may prevent the transaction from closing. In most transactions, these contingencies are not satisfied until the actual closing of the transaction; and, accordingly, the facility is not identified as held for sale until the closing actually occurs. However, each potential transaction is evaluated based on its separate facts and circumstances. Properties classified as held for sale are reported as the lesser of carrying value or fair value less estimated costs to sell.
Revenue Recognition
Management has determined that all our leases with tenants are operating leases. Rental income is recognized in accordance with the terms of the lease agreements or contracts, which generally are month-to-month. Revenues from long-term operating leases are recognized on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in rents received in advance,deferred revenue, and contractually due but unpaid rents are included in other assets.
The Company recognizes gains on disposition of properties only upon closing in accordance with the guidance on sales of real estate. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized using the full accrual method upon closing when the collectability of the sales price is reasonably assured and the Company is not obligated to perform significant activities after the sale. Profit may be deferred in whole or part until the sale meets the requirements of profit recognition on sales under this guidance.
Share Based Payments
We apply the fair value method of accounting for contingently issued shares and share options issued under our equity incentive award plan.plans. Accordingly, share compensation expense was recorded ratably over the vesting period relating to such contingently issued shares and options. The Company has elected to recognize compensation expense on a straight-line method over the requisite service period. Additionally, certain restricted share units awarded to our former Chief Executive Officer in 2005 were scheduled to vest immediately upon his retirement from the Company as he had reached the retirement age set forth in his award agreement. Accordingly, share compensation expense related to this issuance was expensed fully in 2005.
MinorityNoncontrolling Interests
As
Noncontrolling interests are the portion of September 30, 2005,equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from less-than-wholly-owned subsidiaries are reported at the consolidated amounts, including both the amounts attributable to the Company recordedand noncontrolling interests. Presentation of consolidated equity activity is included for both quarterly and annual financial statements, including beginning balances, activity for the operating partnership units issued in connection withperiod and ending balances for shareholders’ equity, noncontrolling interests and total equity. The Company has adjusted the National Self Storage transaction as conditionally redeemable ascarrying value of its noncontrolling interests subject to redemption value to the resultextent applicable.
Income Taxes
The Company elected to accrete changes in the redemption valuebe taxed as a real estate investment trust under Sections 856-860 of the National Self Storage units issued overInternal Revenue Code beginning with the period from October 21, 2004 (commencement of operations) through December 31, 2004. In management’s opinion, the daterequirements to maintain these elections are being met. Accordingly, no provision for federal income taxes has been reflected in the consolidated financial statements other than for operations conducted through our taxable REIT subsidiaries.
Earnings and profits, which determine the taxability of issuancedistributions to shareholders, differ from net income reported for financial reporting purposes due to differences in cost basis, the earliest redemption date (one year fromestimated useful lives used to compute depreciation, and the dateallocation of initial issuance) onnet income and loss for financial versus tax reporting purposes.
The Company is subject to a pro rata basis. Upon termination4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the Special Redemption Right,annual amount, if any, by which the Company classified these units in minority interest. The amountsum of accretion recorded through October 25, 2005 was approximately $3.0 million. Effective October 26, 2005, minority interest represents issued and outstanding operating partnership units.
Minority Interests include income allocated to holders(a) 85% of the operating partnership units. Income is allocated to the minority interests based on their ownership percentageCompany’s ordinary income and (b) 95% of the operating partnership. This ownership percentage, as well asCompany’s net capital gain exceeds cash distributions and certain taxes paid by the total net assets of the operating partnership, changes when additional shares of our common stock or operating partnership units are issued. Such changes result in an allocation between shareholders’ equity and Minority Interests in the Consolidated Balance Sheets. Due to the number of such capital transactions that occur each period, we have presented a single net effect of all such allocations for the period as the “Adjustment for Minority Interest in Operating Partnership” in our Consolidated Statements of Shareholders’ Equity and Owners’ Equity (Deficit) (rather than separately allocating the minority interest for each individual capital transaction).Company.
Recent Accounting Pronouncements
In September 2006, theThe Financial Accounting Standards Board (“FASB”) issued SFAS No. 157,established the Fair Value Measurements FASB Accounting Standards Codification™(“SFAS No. 157” (“Codification”). SFAS No. 157 provides guidance for using fair value to measure assets and liabilities. This statement clarifies as the principle that fair value should be based onsource of authoritative GAAP recognized by the assumptions that market participants would use when pricing the asset or liability. SFAS No. 157 establishes a fair value hierarchy, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable data. SFAS No. 157 applies whenever other standards require assets or liabilitiesFASB to be measured at fair value. This statementapplied by nongovernmental entities in the preparation of financial statements issued for interim and annual periods ending after September 15, 2009. The Codification has changed the manner in which GAAP guidance is effective in fiscal years beginning after November 15, 2007. The Company believes that the adoption of this standard on January 1, 2008 willreferenced, but did not have a material effectan impact on our consolidated financial statements.position, results of operations or cash flows.
In September 2006, the Securities and Exchange CommissionThe FASB issued Staff Accounting Bulletin No. 108, Considering the Effectsauthoritative guidance on accounting for transfers of Prior Year Misstatements when Quantifying Misstatements financial assetsin Current Year Financial Statements (“SAB 108”),June 2009, which became effective for the Companywe will adopt on a prospective basis beginning on January 1, 2007. SAB 108 provides2010. The guidance onrequires entities to provide more information regarding sales of securitized financial assets and similar transactions, particularly if the consideration of the effects of prior
period misstatements in quantifying current year misstatements for the purpose of a materiality assessment. SAB 108 provides for the quantification of the impact of correcting all misstatements, including both the carryover and reversing effects of prior year misstatements, on the current year financial statements. If a misstatement is materialentity has continuing exposure to the current yearrisks related to transferred financial statements, the prior year financial statements should also be corrected, even though such revision was, and continues to be, immaterial to the prior year financial statements. Correcting prior year financial statements for immaterial errors would not require previously filed reports to be amended. Such correction should be made in the current period filings. Effective September 30, 2006, the Company early adopted SAB 108. As described in Note 2, the Company has restated its financial statements for the period October 21, 2004 to December 31, 2004, as of and for the year ended December 31, 2005 and has also restated the Predecessor’s financial statements for the period January 1, 2004 to October 20, 2004. Accordingly, the adjustments previously reflected in the 2006 opening accumulated deficit as the result of the adoption of SAB 108 have been restated into the appropriate prior periods.
In June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (“FIN 48”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on description, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 became effective for the Company on January 1, 2007. The Company has evaluated the impact of adopting FIN 48 and does not expect the adoption of this standard to have a material impact on the consolidated financial statements.
In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of Financial Assets, an Amendment of SFAS No. 140 (“SFAS No. 156”). SFAS No. 156 requires separate recognition of a servicing asset and a servicing liability each time an entity undertakes an obligation to service a financial asset by entering into a service contract. This statement also requires that servicing assets and liabilities be initially recorded at fair value and subsequently adjusted to the fair value at the end of each reporting period. This statement is effective in fiscal years beginning after September 15, 2006. The Company does not expect the adoption of this standard on January 1, 2007 to have a material effect on the consolidated financial statements.
In February 2006, the FASB issued SFAS No.155, Accounting for Certain Hybrid Financial Instruments — An Amendment of FASB No. 133 and 140. The purpose of SFAS No.155 is to simplify the accounting for certain hybrid financial instruments by permitting fair value re-measurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation. SFAS No. 155assets. It also eliminates the restrictionconcept of a “qualifying special-purpose entity,” changes the requirements for derecognizing financial assets and requires additional disclosures. The application will not have an impact on passive derivative instrumentsour consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance on how a company determines when an entity should be consolidated in June 2009, which we will adopt on a prospective basis beginning January 1, 2010. The guidance clarifies that the determination of whether a qualifying special-purposecompany is required to consolidate an entity may hold. SFAS No. 155 is effective for all financial instruments acquired or issued after the beginning ofbased on, among other things, an entity’s first fiscal year beginning after September 15, 2006. The Company does not expectpurpose and design and a company’s ability to direct the adoption of this standard on January 1, 2007 to have a material effect on the consolidated financial statements.
In October 2005, the FASB issued Staff Position No. 13-1 Accounting for Rental Costs Incurred during a Construction Period (“FSP FAS 13-1”). FSP FAS 13-1 addresses the accounting for rental costs associated with operating leases that are incurred during the construction period. FSP FAS 13-1 makes no distinction between the right to use a leased asset during the construction period and the right to use that asset after the construction period. Therefore, rental costs associated with ground or building operating leases that are incurred during a construction period shall be recognized as rental expense, allocated over the lease term in accordance with SFAS No. 13 and Technical Bulletin 85-3. The terms of FSP FAS 13-1 are not applicable to lessees that account for the sale or rental of real estate projects in accordance with SFAS No. 67, “Accounting for Costs and Initial Rental Operations of Real Estate Projects.” FSP FAS 13-1 was effective for the first reporting period beginning after December 15, 2005. Retrospective application in accordance with SFAS No. 154 is permitted but not required. The adoption of FSP FAS 13-1 did not have a material effect on the consolidated financial statementsactivities of the Company.
In September 2005,entity that most significantly impact the Emerging Issues Task Force issued EITF 04-05, Determining Whetherentity’s economic performance. The guidance requires an ongoing reassessment of whether a General Partner, orcompany is the General Partners asprimary beneficiary of a Group, Controlsvariable interest entity. It also requires additional disclosures about a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights (“EITF 04-05”). The scope of EITF 04-05 is limited to limited partnerships or similar entities that are notcompany’s involvement in variable interest entities under FIN 46R.and any significant changes in risk exposure due to that involvement. The Task Force reachedapplication will not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance on determining whether instruments granted in share-based payment transactions are participating securities in June 2008, which we adopted on a consensusprospective basis beginning January 1, 2009. The guidance states that the general partners in a limited partnership (or similar entity)unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are presumed to control the entity regardless of the level of their ownershipparticipating securities and accordingly, mayshould be required to consolidate the entity. This presumption may be overcome if the agreements provide the limited partners with either (a) the substantive ability to dissolve (liquidate) the limited partnership or otherwise remove the general partners without cause or (b) substantive participating rights. If it is deemed that the limited partners’ rights overcome the presumption of control by a general partner of the limited partnership, the general partner shall account for its investmentincluded in the limited partnership usingcomputation of earnings per share pursuant to the equity method of accounting. EITF 04-05 was effective immediately for all arrangements created or modified after September 29, 2005. For all other arrangements,two-class method. The application of EITF 04-05 is required
effective for the first reporting period in fiscal years beginning after December 15, 2005 (i.e., effective January 1, 2006 for the Company) using either a cumulative-effect-type adjustment or using a retrospective application. The adoption of EITF 04-05 did not have an effectimpact on the Company’sour consolidated financial statements.position, results of operations or cash flows.
In May 2005, theThe FASB issued SFAS No. 154, Accounting Changes and Error Corrections (“SFAS No. 154”). SFAS No. 154 replaces APB No. 20, “Accounting Changes” and SFAS No. 3, “Reporting Accounting Changesauthoritative guidance on accounting for convertible debt instruments that may be settled in Interim Financial Statements” and establishes retrospective application as the required method for reportingcash upon conversion (including partial cash settlement)in May 2008, which we adopted on a change in accounting principle. SFAS No. 154 provides guidance for determining whether a retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable. SFAS No. 154 is effective for accounting changes and corrections of errors made in fiscal yearsprospective basis beginning after December 15, 2005. The Company adopted SFAS No. 154 on January 1, 20062009. The guidance requires that instruments within its scope be separated into their liability and has applied this standard in conjunction with its restatement (see Note 2).
In March 2005,equity components atinitial recognition by recording the FASB issued Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations (“FIN 47”), an interpretation of SFAS No. 143, Asset Retirement Obligations. FIN 47 provides clarification of the term “conditional asset retirement obligation” as used in SFAS No. 143, defined as a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the company. Under this standard, a company must record a liability for a conditional asset retirement obligation ifcomponent at the fair value of a similar liability that does not have an associated equity component and attributing the obligation canremaining proceeds from issuance to the equity component. The excess of the principal amount of the liability component over its initial fair value will be reasonably estimated. FIN 47 became effective inamortized to interest expense using the Company’s quarter ended December 31, 2005.interest method. The Company adopted FIN 47 as required effective December 31, 2005 and the initial application of FIN 47 did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding the hierarchy of generally accepted accounting principles in May 2008, which we adopted on a materialprospective basis beginning January 1, 2009. The guidance states that the GAAP hierarchy will now
reside in the accounting literature established by the FASB. The guidance identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements in conformity with GAAP. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding disclosures about derivative instruments and hedging activities in March 2008, which we adopted on a prospective basis beginning January 1, 2009. The guidance enhances required disclosures regarding derivatives and hedging activities, including enhanced disclosures regarding how an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under previous guidance and the impact of derivative instruments and related hedged items on an entity’s financial position, financial performance and cash flows. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding business combinationsin December 2007, which we adopted on a prospective basis beginning January 1, 2009. The guidance establishes principles and requirements for recognizing identifiable assets acquired, liabilities assumed, noncontrolling interest in the acquiree, goodwill acquired in the combination or the gain from a bargain purchase, and disclosure requirements. Under this guidance, all costs incurred to effect an acquisition will be recognized separately from the acquisition. Also, restructuring costs that are expected but the acquirer is not obligated to incur will be recognized separately from the acquisition. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding noncontrolling interests in consolidated Financial Statements in December 2007, which we adopted on a prospective basis beginning January 1, 2009. The guidance requires that ownership interests in subsidiaries held by parties other than the parent be clearly identified. In addition, it requires that the amount of consolidated net income attributable to the parent and to the noncontrolling interest be clearly identified and presented on the face of the income statement. The application impacted certain financial statement footnote disclosures but did not affect our consolidated financial statementsposition, results of the Company.operations or cash flows.
Results of Operations
The following discussion of our results of operations should be read in conjunction with the consolidated and combined financial statements and the accompanying notes thereto. Historical results set forth in the consolidated and combined statements of operations reflect only the existing facilities and should not be taken as indicative of future operations.
Comparison of the Year Ended December 31, 2006 to the Year Ended December 31,2005
Acquisition and Development Activities
The comparability of the Company’s results of operations is significantly affected by acquisition activities in 2006 and 2005. At December 31, 2006 and 2005, the Company owned 399 and 339 self-storage facilities and related assets, respectively.
In 2006, 60 self-storage facilities were acquired for approximately $362.4 million (the “2006 Acquisitions”).
In 2005, 146 self-storage facilities were acquired for approximately $547.9 million. During 2005 four self-storage facilities were sold for approximately $6.2 million, and accordingly results of operations for these facilities have been accounted for as discontinued operations. The Company also reduced its reported number of facilities during 2005 by consolidating four facilities into existing adjacent facilities. Based upon total acquisitions, dispositions and consolidations, the Company had a net increase of 138 facilities in 2005 (the “2005 Acquisitions”).
A comparison of net income (loss) for the years ended December 31, 2006 and 2005 is as follows:
|
| Year Ended December 31, |
| ||||
|
| 2006 |
| 2005 |
| ||
|
|
|
| (as restated) |
| ||
|
| (in thousands) |
| ||||
REVENUES |
|
|
|
|
| ||
Rental income |
| $ | 197,753 |
| $ | 137,202 |
|
Other property related income |
| 14,902 |
| 10,001 |
| ||
Other - related party |
| 457 |
| 405 |
| ||
Total revenues |
| 213,112 |
| 147,608 |
| ||
OPERATING EXPENSES |
|
|
|
|
| ||
Property operating expenses |
| 86,547 |
| 55,462 |
| ||
Property operating expenses - related party |
| 69 |
| 43 |
| ||
Depreciation |
| 64,729 |
| 39,949 |
| ||
Asset write-off |
| 305 |
| — |
| ||
General and administrative |
| 21,675 |
| 17,786 |
| ||
General and administrative - related party |
| 613 |
| 736 |
| ||
Total operating expenses |
| 173,938 |
| 113,976 |
| ||
OPERATING INCOME |
| 39,174 |
| 33,632 |
| ||
OTHER INCOME (EXPENSE) |
|
|
|
|
| ||
Interest: |
|
|
|
|
| ||
Interest expense on loans |
| (46,125 | ) | (32,370 | ) | ||
Loan procurement amortization expense |
| (1,998 | ) | (2,057 | ) | ||
Write-off of loan procurement cost due to early extinguishment of debt |
| (1,907 | ) | (93 | ) | ||
Interest income |
| 1,341 |
| 2,405 |
| ||
Other |
| 191 |
| (47 | ) | ||
Total other expense |
| (48,498 | ) | (32,162 | ) | ||
INCOME (LOSS) BEFORE MINORITY INTERESTS |
| (9,324 | ) | 1,470 |
| ||
MINORITY INTERESTS |
| 773 |
| (113 | ) | ||
NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS |
| (8,551 | ) | 1,357 |
| ||
DISCONTINUED OPERATIONS |
|
|
|
|
| ||
Income from operations |
| — |
| 32 |
| ||
Gain on sale of storage facilities |
| — |
| 179 |
| ||
Income from discontinued operations |
| — |
| 211 |
| ||
NET INCOME (LOSS) |
| $ | (8,551 | ) | $ | 1,568 |
|
Comparison of Operating Results for the Years Ended December 31, 20062009 and 20052008(Not including discontinued operations)
Total Revenues
Rental income increased from $137.2 million in 2005 to $197.8 million in 2006, an increase of $60.6 million, or 44%. This increase is primarily attributable to (i) additional rental income from the 2006 Acquisitions, (ii) a full year contribution from the 2005 Acquisitions, and (iii) an increase in rental income from our pool of same-store facilities of approximately $4.6 million.
Other property related income increased from $10.0 million in 2005 to $14.9 million in 2006, an increase of $4.9 million, or 49%. This increase is primarily attributable to the other property income from the 2006 Acquisitions and a full year contribution from the 2005 Acquisitions.
Total Operating Expenses
Property operating expenses increased from $55.5 million in 2005 to $86.6 million in 2006, an increase of $31.1 million, or 56%. This increase is primarily attributable to (i) additional operating expenses from the 2006 Acquisitions, (ii) a full year of operating
expenses from the 2005 Acquisitions, and (iii) an increase in operating expenses from our “same-store” facilities of approximately $5.7 million.
General and administrative expenses increased from $18.5 million in 2005 to $22.3 million in 2006, an increase of $3.8 million, or 20.5%. The increase is primarily attributable to (i) approximately $2.7 million of severance costs during 2006, (ii) approximately $0.4 million related to the settlement of a claim made based on actions taken by the Predecessor Company prior to the initial public offering, and (iii) $0.2 million related to professional fees incurred in 2006 related to reorganization. Depreciation increased from $39.9 million in 2005 to $64.7 million in 2006, an increase of $24.8 million, or 62%. The increase is primarily attributable to additional depreciation expense related to the 2006 Acquisitions and a full year of depreciation expense related to the 2005 Acquisitions.
Total Other Expenses
Interest expense increased from $32.4 million in 2005 to $46.1 million in 2006, an increase of $13.7 million, or 42.3%. The increase is attributable to a higher amount of outstanding debt in 2006 primarily resulting from the financing of certain of the 2006 Acquisitions with additional borrowings.
In conjunction with the two revolving credit facility financings during 2006, the Company incurred charges of $1.9 million relating to the write-off of unamortized loan procurement costs.
Interest income decreased to $1.3 million in 2006 from $2.4 million in 2005. This decrease is primarily attributable to the Company’s 2005 follow-on public offering. The Company invested excess proceeds from the follow-on offering in interest bearing accounts and in short-term marketable securities until the excess proceeds were used to fund acquisitions or pay down existing debt during the first quarter of 2006.
Comparison of the Year Ended December 31, 2005 to the Year Ended December 31,2004
For purposes of the following comparison of operating results for the years ended December 31, 2005 and December 31, 2004, the Company combined the results of operations for the Company for the period from October 21, 2004 through December 31, 2004 and the Predecessor for the period from January 1, 2004 through October 20, 2004. Internally, the Company uses combined reporting to evaluate its operating performance and believes that this presentation will provide investors with additional insight into our financial results.
Acquisition and Development Activities
The comparability of the Company’s results of operations is significantlyare affected by the acquisition activitiesactivity in 2005 and 2004.2008 as listed below. At December 31, 20052009 and 2004,2008, the Company owned interests in 339367 and 201387 self-storage facilities and related assets, respectively.
·In 2004, 462009, 20 self-storage facilities were sold for approximately $90.9 million (the “2009 Dispositions”).
·In 2008, one self-storage facility was acquired for approximately $221.8$13.3 million (the “2004 Acquisitions”“2008 Acquisition”). All of these
·In 2008, 23 self-storage facilities were acquired concurrently with, or shortly after, the completionsold for approximately $62.0 million (the “2008 Dispositions”).
Comparison of the IPO.
A comparison of net income (loss) for the years ended December 31, 2005 and 2004 is as follows:
|
| For the |
| For the |
| ||
|
| Year ended |
| Year ended |
| ||
|
| December 31, |
| December 31, |
| ||
|
| 2005 |
| 2004 |
| ||
|
| (as restated) |
| (as restated) (1) |
| ||
|
| (Dollars and in thousands) |
| ||||
REVENUES |
|
|
|
|
| ||
Rental income |
| $ | 137,202 |
| $ | 87,132 |
|
Other property related income |
| 10,001 |
| 4,663 |
| ||
Other - related party |
| 405 |
| 71 |
| ||
Total revenues |
| 147,608 |
| 91,866 |
| ||
OPERATING EXPENSES |
|
|
|
|
| ||
Property operating expenses |
| 55,462 |
| 35,937 |
| ||
Property operating expenses - related party |
| 43 |
| — |
| ||
Depreciation |
| 39,949 |
| 22,328 |
| ||
General and administrative |
| 17,786 |
| 4,140 |
| ||
General and administrative - related party |
| 736 |
| 114 |
| ||
Management fees - related party |
| — |
| 3,689 |
| ||
Total operating expenses |
| 113,976 |
| 66,208 |
| ||
OPERATING INCOME |
| 33,632 |
| 25,658 |
| ||
OTHER INCOME (EXPENSE) |
|
|
|
|
| ||
Interest: |
|
|
|
|
| ||
Interest expense on loans |
| (32,370 | ) | (23,813 | ) | ||
Loan procurement amortization expense |
| (2,057 | ) | (6,244 | ) | ||
Write-off of loan procurement cost due to early extinguishment of debt |
| (93 | ) | (7,012 | ) | ||
Cost incurred to acquire management company - related party |
| — |
| (22,152 | ) | ||
Interest income |
| 2,405 |
| 106 |
| ||
Other |
| (47 | ) | (78 | ) | ||
Total other expense |
| (32,162 | ) | (59,193 | ) | ||
INCOME (LOSS) BEFORE MINORITY INTERESTS |
| 1,470 |
| (33,535 | ) | ||
MINORITY INTERESTS |
| (113 | ) | 898 |
| ||
NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS |
| 1,357 |
| (32,637 | ) | ||
DISCONTINUED OPERATIONS |
|
|
|
|
| ||
Income from operations |
| 32 |
| — |
| ||
Gain on sale of storage facilities |
| 179 |
| — |
| ||
Income from discontinued operations |
| 211 |
| — |
| ||
NET INCOME (LOSS) |
| $ | 1,568 |
| $ | (32,637 | ) |
(1) The twelve months ended December 31, 2004 represents consolidated operating results for the Company from October 21, 2004 to December 31, 2004 and combined operating results for the Predecessor from January 1, 2004 to October 20, 2004. The operating results for the year ended December 31, 2004 are not comparable to future expected operating results of the Company since they include various IPO-related charges.
Comparison of Operating Results for the YearsYear Ended December 31, 2005 and 2004(not including discontinued operations)2009 to the Year Ended December 31, 2008 (dollars in thousands)
|
| Same Store Property Portfolio |
| Properties |
| Other/ |
| Total Portfolio |
| ||||||||||||||||||||||||||
|
|
|
|
|
| Increase/ |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
| Increase/ |
|
|
| ||||||||||
|
| 2009 |
| 2008 |
| (Decrease) |
| Change |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| (Decrease) |
| Change |
| ||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Rental income |
| $ | 196,383 |
| $ | 204,898 |
| $ | (8,515 | ) | -4 | % | $ | 4,247 |
| $ | 3,541 |
| $ | — |
| $ | — |
| $ | 200,630 |
| $ | 208,439 |
| $ | (7,809 | ) | -4 | % |
Other property related income |
| 15,935 |
| 15,343 |
| 592 |
| 4 | % | 724 |
| 357 |
| — |
| — |
| 16,659 |
| 15,700 |
| 959 |
| 6 | % | ||||||||||
Total revenues |
| 212,318 |
| 220,241 |
| (7,923 | ) | -4 | % | 4,971 |
| 3,898 |
| — |
| — |
| 217,289 |
| 224,139 |
| (6,850 | ) | -3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Property operating expenses |
| 83,997 |
| 85,109 |
| (1,112 | ) | -1 | % | 2,405 |
| 2,064 |
| 7,543 |
| 7,983 |
| 93,945 |
| 95,156 |
| (1,211 | ) | -1 | % | ||||||||||
NET OPERATING INCOME: |
| 128,321 |
| 135,132 |
| (6,811 | ) | -5 | % | 2,566 |
| 1,834 |
| (7,543 | ) | (7,983 | ) | 123,344 |
| 128,983 |
| (5,639 | ) | -4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 70,832 |
| 73,751 |
| (2,919 | ) | -4 | % | ||||||||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 22,569 |
| 24,964 |
| (2,395 | ) | -10 | % | ||||||||||
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 93,401 |
| 98,715 |
| (5,314 | ) | -5 | % | ||||||||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 29,943 |
| 30,268 |
| (325 | ) | -1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest expense on loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (45,269 | ) | (52,014 | ) | 6,745 |
| -13 | % | ||||||||||
Loan procurement amortization expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (2,339 | ) | (1,929 | ) | (410 | ) | 21 | % | ||||||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 681 |
| 153 |
| 528 |
| 345 | % | ||||||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (33 | ) | 94 |
| (127 | ) | -135 | % | ||||||||||
Total other expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (46,960 | ) | (53,696 | ) | 6,736 |
| -13 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
LOSS FROM CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (17,017 | ) | (23,428 | ) | 6,411 |
| -27 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2,546 |
| 6,810 |
| (4,264 | ) | -63 | % | ||||||||||
Net gain on disposition of discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 14,139 |
| 19,720 |
| (5,581 | ) | -28 | % | ||||||||||
Total discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 16,685 |
| 26,530 |
| (9,845 | ) | -37 | % | ||||||||||
NET INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (332 | ) | 3,102 |
| $ | (3,434 | ) | -111 | % | |||||||||
NET LOSS (INCOME) ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
NONCONTROLLING INTERESTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Noncontrolling interests in the Operating Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 60 |
| (310 | ) | 370 |
| -119 | % | ||||||||||
Noncontrolling interests in subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (665 | ) | — |
| (665 | ) | -100 | % | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | (937 | ) | $ | 2,792 |
| $ | (3,729 | ) | -134 | % | |||||||
Total Portfolio
Total Revenues
Rental income decreased from $208.4 million in 2008 to $200.6 million in 2009, a decrease of $7.8 million, or 4%. This decrease is primarily attributable to a decrease of rental income from the same-store properties of $8.5 million due to decreased occupancy levels during 2009 as compared to 2008, offset by an increase in rental income of $0.7 million from assets that do not meet the same-store criteria, including management fee revenue from property management services of $0.1 million during 2009 with no comparable income during 2008.
Other property related income increased from $87.2$15.7 million in 20042008 to $137.2$16.7 million in 2005,2009, an increase of $50.0$1.0 million, or 57%6%. This increase is primarily attributable to (i) additional rental income fromincreased insurance commissions and merchandise sales of $1.0 million across the 2005 Acquisitions, and (ii) a full year contribution from the 2004 Acquisitions.portfolio of storage facilities during 2009 as compared to 2008.
Other property related income increased from $4.7 million in 2004 to $10.0 million in 2005, an increase of $5.3 million, or 113%. This increase is primarily attributable to other property income from the 2005 Acquisitions and a full year contribution from the 2004 Acquisitions.
Total Operating Expenses
Property operating expenses increaseddecreased from $35.9$95.2 million in 20042008 to $55.5$93.9 million in 2005, an increase of $19.6 million, or 55%. This increase is primarily attributable to (i) additional operating expenses from the 2005 Acquisitions, and (ii) a full year of operating expenses from the 2004 Acquisitions.
A large percentage of the Company’s general and administrative costs began with the Company’s IPO in October 2004. As a result, general and administrative expenses increased $14.2 million to $18.5 million in 2005 from $4.3 million in 2004, primarily from incurring a full year of general and administrative costs. General and administrative costs included a charge of approximately $4.7 million in 2005 and approximately $2.8 million in 2004, an increase of $1.9 million, for compensation expense to certain members of the Company’s then senior management team. The $4.7 million of general and administrative expense incurred in 2005 included approximately $2.5 million of bonuses and approximately $2.2 million of share compensation expense. The $2.8 million incurred in 2004 included approximately $0.4 million for bonuses and approximately $2.4 million for share compensation expense. During 2005, administrative costs included expenses related to being a public company, including, audit and legal fees, Board of Trustee fees, Sarbanes-Oxley compliance costs and investor relations costs which totaled approximately $3.4 million in 2005, of which $1.1 million related to Sarbanes-Oxley compliance costs. The remaining general and administrative costs increased approximately $8.9 million to $10.4 million in 2005 from $1.5 million in 2004, which increase related primarily to administrative salaries and miscellaneous expenses incurred for the full year of 2005.
Management fees decreased from $3.7 million in 2004 to $0.0 million in 2005,2009, a decrease of $3.7$1.3 million, or 100%. This decrease is attributable to the acquisition of our management company effective October 27, 2004 in connection with our IPO. Management fees from our wholly-owned subsidiaries were eliminated subsequent to October 27, 2004 and were replaced with management company expenses, which are recorded in general and administrative expenses. Depreciation increased from $22.3 million in 2004 to $39.9 million in 2005, an increase of $17.6 million, or 78.9%. The increase is partially attributable to additional depreciation expense from the 2005 Acquisitions. Additionally, the increase is partially attributable to a “step up” in the carrying amount of fixed assets due to the purchase of outside partners’ interests in the Predecessor in May 2004 and the acquisition of 46 facilities in the fourth quarter of 2004. The above increases were partially offset by lower depreciation on fully amortized equipment with lives significantly shorter than new buildings and improvements.
Total Other Expenses
Interest expense increased from $23.8 million in 2004 to $32.4 million in 2005, an increase of $8.6 million, or 35.9%. The increase is attributable to a higher amount of outstanding debt in 2005 primarily resulting from the financing of certain of the 2005 Acquisitions with additional borrowings.
Loan procurement amortization expense decreased from $6.2 million in 2004 to $2.1 million in 2005, a decrease of $4.1 million, or 66.1%1%. This decrease is primarily attributable to loana $0.7 million decrease in repairs and maintenance expenses and a $0.7 million decrease in utility expenses during the 2009 period as compared to the 2008.
Depreciation and amortization decreased from $73.8 million in 2008 to $70.8 million in 2009, a decrease of $3.0 million, or 4%. The decrease is primarily attributable to amortization expense of $6.8 million incurred during 2008 related to two in-place lease intangible assets acquired in conjunction with property acquisitions during 2008 and 2007, with no similar
activity during 2009, offset by an increase in depreciation expense during the 2009 period of $3.8 million as compared to the 2008 period related to capital improvements during 2008 and 2009.
General and administrative expenses decreased from $25.0 million in 2008 to $22.6 million in 2009, a decrease of $2.4 million, or 10%. This decrease is primarily attributable to a $0.3 million decrease in travel and lodging expenses during 2009 as compared to 2008, and $2.1 million in severance related costs incurred during the 2008 period that the Company did not incur during the 2009 period.
Total Other Income (Expenses)
Interest expense decreased from $52.0 million in the 2008 period to $45.3 million in the 2009 period, a decrease of $6.7 million, or 13%. The decrease is attributable to lower interest rates on unsecured debt as well as lower outstanding borrowings on the credit facility during the 2009 period as compared to the 2008 period resulting in an overall decrease in interest expense during 2009 as compared to 2008.
Loan procurement amortization expense increased from $1.9 million in the 2008 period to $2.3 million in the 2009 period, an increase of $0.4 million, or 21%. The increase is attributable to additional costs incurred in connection with the Predecessor entering into a $424.5 million term loan in May 2004, which was used to purchase the interests of outside partners in the Predecessor.
In the fourth quarter of 2004, the Company incurred a charge of $7.0 million for the early extinguishment of debt primarily duerelation to the incurrence of approximately $0.9 million of prepayment penaltiessecured credit facility and the write-off of $6.1 million of unamortized loan procurement costs.
Cost incurred to acquire the management company as part of our IPO transactions resulted17 secured financings entered into in a one-time charge of $22.2 million in 2004.2009.
Interest income increased to $2.4$0.7 million in 2005the 2009 period from $0.1$0.2 million in 2004.the 2008 period. This increase is primarily attributable to the investment of excessinterest income earned on proceeds received in October 2005 from the Company’s follow-on public offering.secondary offering completed in August 2009.
ImpactDiscontinued Operations
Gains on disposition of Hurricanes
Asdiscontinued operations decreased from $19.7 million in the 2008 period to $14.1 million in the 2009 period, a decrease of $5.6 million, as a result of hurricanes that occurredthe sale of 23 assets during the third quarter2008 period as compared to 20 asset sales during the 2009 period.
Noncontrolling Interests in Subsidiaries
Noncontrolling interests in subsidiaries decreased $0.7 million during the 2009 period as compared to the 2008 period primarily as a result of 2005,activity related to the Company incurred damage at certainoperations of its self-storage facilities located in Alabama, Louisiana and Mississippi. Under the provisions of SFAS No. 144, “Accounting for the Impairment of or Disposal of Long-Lived Assets”a joint venture (“SFAS No. 144”HART”), thewhich was formed in August 2009 to own and operate 22 self-storage facilities. The Company determined that there were indicators of impairmentretained a 50% ownership interest in HART and accordingly tested the assets for recoverability. After an assessmentpresents 50% of the damage sustainedrelated results as an adjustment to net income (loss) when arriving at the Waveland, Mississippi facility, the Company determined that a charge for impairment of approximately $2.3 million was required because the estimated undiscounted future cash flows did not support the carrying value of the assets. The Company expected that insurance proceeds from its comprehensive insurance for property damage would cover the entire loss incurred, and in 2005 appropriately recorded the impairment charge and an offsetting insurance recovery of $2.3 million, of which $0.5 million was received in October 2005. The related insurance receivable was included in other assets as of December 31, 2005, and the asset impairment charge and related insurance recovery were presented net in operating expenses for the year ended December 31, 2005. During 2006, insurance proceeds were sufficientincome (loss) attributable to satisfy the insurance receivable and there is no balance remaining as of December 31, 2006.shareholders.
Hurricanes in late summer and early fall of 2004 caused damage at five of the Company’s 52 facilities that are located in Florida. The Company incurred uninsured damages resulting from the hurricanes of approximately $0.4 million. These damages did not cause any material service interruption and all of the facilities are currently fully operational. The damages at these facilities did not result in an impairment of the facilities’ net carrying values at December 31, 2004.
Same-Store Facility ResultsProperty Portfolio
The Company considers its same-store portfolio to consist of only those facilities owned and operated on a stabilized basis at the beginning and at the end of the applicable periodsyears presented. The following same-store presentation isSame-store results are considered to be useful to investors in evaluating our performance because it provides information relating to changes in facility-level operating performance without taking into account the effects of acquisitions, developments or dispositions.
Same-store revenues decreased from $220.2 million in the 2008 period to $212.3 million in the 2009 period, a decrease of $7.9 million, or 4%. This decrease is primarily attributable to a decrease in realized rent per occupied square foot of 5.2% during the 2009 period as compared to the 2008 period. Same-store property operating expenses decreased from $85.1 million in 2008 to $84.0 million in 2009, a decrease of $1.1 million, or 1%. The following table sets forth operating data for our Same-Store portfoliodecrease primarily relates to a $0.5 million decrease in repairs and maintenance expenses and a $0.5 million decrease in utility expenses during the 2009 period as compared to the 2008.
Comparison of Operating Results for the periods presented.Years Ended December 31, 2008 and 2007
50
Acquisition and Development Activities
The comparability of the Company’s results of operations is significantly affected by the acquisition activity in 2008 and 2007 as listed below. At December 31, 2008 and 2007, the Company owned 387 and 409 self-storage facilities and related assets, respectively.
·In 2008, one self-storage facility was acquired for approximately $13.3 million (the “2008 Acquisition”).
·In 2008, 23 self-storage facilities were sold for approximately $62.0 million (the “2008 Dispositions”).
·In 2007, 17 self-storage facilities were acquired for approximately $140.5 million (the “2007 Acquisitions”).
·In 2007, five self-storage facilities were sold for approximately $19.2 million (the “2007 Dispositions”).
Comparison of the Year Ended December 31, 20062008 to the Year Ended December 31, 2007 (dollars in thousands)
|
| Same Store Property Portfolio |
| Properties |
| Other/ |
| Total Portfolio |
| ||||||||||||||||||||||||||
|
|
|
|
|
| Increase/ |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
| Increase/ |
|
|
| ||||||||||
|
| 2008 |
| 2007 |
| (Decrease) |
| Change |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| (Decrease) |
| Change |
| ||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Rental income |
| $ | 194,367 |
| $ | 186,729 |
| $ | 7,638 |
| 4 | % | $ | 14,072 |
| $ | 5,546 |
| $ | — |
| $ | — |
| $ | 208,439 |
| $ | 192,275 |
| $ | 16,164 |
| 8 | % |
Other property related income |
| 14,625 |
| 14,487 |
| 138 |
| 1 | % | 1,075 |
| 842 |
| — |
| — |
| 15,700 |
| 15,329 |
| 371 |
| 2 | % | ||||||||||
Other - related party |
| — |
| — |
| — |
| 0 | % | — |
| 365 |
| — |
| — |
| — |
| 365 |
| (365 | ) | -100 | % | ||||||||||
Total revenues |
| 208,992 |
| 201,216 |
| 7,776 |
| 4 | % | 15,147 |
| 6,753 |
| — |
| — |
| 224,139 |
| 207,969 |
| 16,170 |
| 8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Property operating expenses |
| 80,503 |
| 78,697 |
| 1,806 |
| 2 | % | 7,146 |
| 2,733 |
| 7,507 |
| 7,198 |
| 95,156 |
| 88,628 |
| 6,528 |
| 7 | % | ||||||||||
Property operating expenses - related party |
| — |
| — |
| — |
| 0 | % | — |
| — |
| — |
| 59 |
| — |
| 59 |
| (59 | ) | -100 | % | ||||||||||
Subtotal |
| 80,503 |
| 78,697 |
| 1,806 |
| 2 | % | 7,146 |
| 2,733 |
| 7,507 |
| 7,257 |
| 95,156 |
| 88,687 |
| 6,469 |
| 7 | % | ||||||||||
NET OPERATING INCOME: |
| 128,489 |
| 122,519 |
| 5,970 |
| 5 | % | 8,001 |
| 4,020 |
| (7,507 | ) | (7,257 | ) | 128,983 |
| 119,282 |
| 9,701 |
| 8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 73,751 |
| 64,672 |
| 9,079 |
| 14 | % | ||||||||||
Lease abandonment charge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 1,316 |
| (1,316 | ) | -100 | % | ||||||||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 24,964 |
| 21,966 |
| 2,998 |
| 14 | % | ||||||||||
General and administrative- related party |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 337 |
| (337 | ) | -100 | % | ||||||||||
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 98,715 |
| 88,291 |
| 10,424 |
| 12 | % | ||||||||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 30,268 |
| 30,991 |
| (723 | ) | -2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest expense on loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (52,014 | ) | (54,108 | ) | 2,094 |
| -4 | % | ||||||||||
Loan procurement amortization expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1,929 | ) | (1,772 | ) | (157 | ) | 9 | % | ||||||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 153 |
| 401 |
| (248 | ) | -62 | % | ||||||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 94 |
| 118 |
| (24 | ) | -20 | % | ||||||||||
Total other expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (53,696 | ) | (55,361 | ) | 1,665 |
| -3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
LOSS FROM CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (23,428 | ) | (24,370 | ) | 942 |
| -4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,810 |
| 7,606 |
| (796 | ) | -10 | % | ||||||||||
Net gain on disposition of discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 19,720 |
| 2,517 |
| 17,203 |
| 683 | % | ||||||||||
Total discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 26,530 |
| 10,123 |
| 16,407 |
| 162 | % | ||||||||||
NET INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3,102 |
| (14,247 | ) | $ | 17,349 |
| -122 | % | |||||||||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Noncontrolling interests in the Operating Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (310 | ) | 1,170 |
| (1,480 | ) | -126 | % | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 2,792 |
| $ | (13,077 | ) | $ | 15,869 |
| -121 | % | |||||||
2005Total Portfolio
Total Revenues
Rental income increased from $192.3 million in 2007 to $208.4 million in 2008, an increase of $16.1 million, or 8.4%. This increase is primarily attributable to (i) additional rental income from the 2008 Acquisition of $1.2 million, (ii) a full year contribution from the 2007 Acquisitions resulting in additional rental income of $7.5 million, and (iii) an increase in rental income from our pool of same-store facilities of approximately $7.6 million resulting from rate increases and an increase in realized rent per occupied square foot of 3.9% during the 2008 period as compared to the 2007 period.
Other property related income increased from $15.3 million in 2007 to $15.7 million in 2008, an increase of $0.4 million, or 2.6%. This increase is primarily attributable to increased administrative fees across the portfolio of storage facilities during 2008 as compared to 2007.
Other — related party decreased from $0.4 million in 2007 to $0 in 2008 due to a decrease in third party management fee income pursuant to the termination of the Rising Tide property management agreement in September 2007.
Total Operating Expenses
Property operating expenses, including property operating expenses — related party, increased from $88.7 million in 2007 to $95.2 million in 2008, an increase of $6.5 million, or 7%. This increase is primarily attributable to (i) additional operating expenses from the 2008 Acquisition of $0.5 million, (ii) a full year contribution from the 2007 Acquisitions resulting in additional operating expenses of $3.3 million, and (iii) an increase in operating expenses from our pool of same-store facilities of approximately $1.8 million. The following table provides information pertainingincrease in our same-store facilities’ operating expenses in 2008 as compared to 2007 primarily relates to increased property tax and utility expenses of $0.7 million and $0.5 million, respectively.
Depreciation and amortization increased from $64.7 million in 2007 to $73.8 million in 2008, an increase of $9.1 million, or 14%. The increase is attributable to additional depreciation expense of $1.8 million related to the 2008 Acquisition and a full year of depreciation expense related to the 2007 Acquisitions in the 2008 period as compared to the 2007 period, an increase from our pool of same-store facilities of approximately $1.4 million, and additional intangible amortization expense of $5.5 million related to the 2008 Acquisition and 2007 Acquisitions in the 2008 period as compared to the 2007 period.
In August 2007, the Company abandoned certain office space in Cleveland, OH that was previously used for its corporate offices. The related leases have expiration dates ranging from December 31, 2008 through December 31, 2014. Upon vacating the space, the Company entered into a sub-lease agreement with a sub-tenant to lease the majority of the space for the duration of the term. As a result of this exit activity, the Company recognized a “Lease abandonment charge” of $1.3 million during 2007.
General and administrative expenses, including General and administrative expenses — related party increased from $22.3 million in 2007 to $25.0 million in 2008, an increase of $2.7 million, or 12%. The increase is primarily attributable to (i) approximately $1.1 million of due diligence costs that were written off during the 2008 period (ii) $0.9 million of increased amortization of equity compensation during the 2008 period as compared to the 2007 period and (iii) $2.1 million of severance related costs incurred during the 2008 period, offset by $1.2 million of non-recurring legal costs incurred during the 2007 period. Excluding the 2008 charges for due diligence and severance costs, reduced by the non-recurring charge for legal costs in 2007, general and administrative expenses increased by approximately $0.7 million, or approximately 3%.
Total Other Income (Expenses)
Interest expense decreased from $54.1 million in the 2007 period to $52.0 million in the 2008 period, a decrease of $2.1 million, or 4%. Although the Company incurred additional debt to finance certain 2007 and 2008 acquisitions, lower interest rates on unsecured debt and loan repayments during the 2008 period as compared to the 2007 period resulted in an overall decrease in interest expense during 2008 as compared to 2007.
Loan procurement amortization expense increased from $1.8 million in the 2007 period to $1.9 million in the 2008 period, an increase of $0.1 million, or 6%. The increase is attributable to additional costs incurred in relation to the secured term loan entered into in April 2008 and the related amortization of those costs in the 2008 period as compared to no similar amortization in the 2007 period.
Interest income decreased to $0.2 million in the 2008 period from $0.4 million in the 2007 period. This decrease is primarily attributable to lower interest rates earned on daily operating cash during the 2008 period as compared to the 2007 period.
Discontinued Operations
Gains on disposition of discontinued operations increased from $2.5 million in the 2007 period to $19.7 million in the 2008 period, an increase of $17.2 million, as a result of the sale of five assets during the 2007 period as compared to 23 assets sold during the 2008 period.
Same-Store portfolio for 2006 and 2005:Property Portfolio
|
|
|
| Properties |
| Other/ |
|
|
| ||||||||||||||||
|
| Same-Store Property Portfolio |
| Acquired |
| Eliminations |
| Total Portfolio |
| ||||||||||||||||
|
|
|
|
|
| Increase/ |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
| Increase/ |
|
|
|
|
| 2006 |
| 2005 |
| (Decrease) |
| Change |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| (Decrease) |
| Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
| $ 113,215 |
| $ 109,787 |
| $ 3,428 |
| 3 | % | $ 84,538 |
| $ 27,415 |
| $ — |
| $ — |
| $ 197,753 |
| $ 137,202 |
| $ 60,551 |
| 44 | % |
Other property related income |
| 8,603 |
| 8,156 |
| 447 |
| 5 | % | 6,299 |
| 1,845 |
| — |
| — |
| 14,902 |
| 10,001 |
| 4,901 |
| 49 | % |
Other—related party |
| — |
| — |
| — |
|
|
| — |
| — |
| 457 |
| 405 |
| 457 |
| 405 |
| 52 |
| 13 | % |
Total revenues |
| 121,818 |
| 117,943 |
| 3,875 |
| 3 | % | 90,837 |
| 29,260 |
| 457 |
| 405 |
| 213,112 |
| 147,608 |
| 65,504 |
| 44 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
| 45,596 |
| 41,093 |
| 4,503 |
| 10 | % | 40,951 |
| 14,369 |
| — |
| — |
| 86,547 |
| 55,462 |
| 31,085 |
| 56 | % |
Property operating expenses - related party |
| — |
| — |
| — |
| — |
| — |
| — |
| 69 |
| 43 |
| 69 |
| 43 |
| 26 |
| 60 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
| 45,596 |
| 41,093 |
| 4,503 |
| 10 | % | 40,951 |
| 14,369 |
| 69 |
| 43 |
| 86,616 |
| 55,505 |
| 31,111 |
| 56 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME: |
| 76,222 |
| 76,850 |
| (628 | ) | 1 | % | 49,886 |
| 14,891 |
| 388 |
| 362 |
| 126,496 |
| 92,103 |
| 34,393 |
| 37 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
| 64,729 |
| 39,949 |
| 64,729 |
| 39,949 |
| 24,780 |
| 62 | % |
Asset write-off |
|
|
|
|
|
|
|
|
|
|
|
|
| 305 |
| — |
| 305 |
| — |
| 305 |
| — |
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
| 21,675 |
| 17,786 |
| 21,675 |
| 17,786 |
| 3,889 |
| 22 | % |
General and administrative - related party |
|
|
|
|
|
|
|
|
|
|
|
|
| 613 |
| 736 |
| 613 |
| 736 |
| (123 | ) | (0 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
| 87,322 |
| 58,471 |
| 87,322 |
| 58,471 |
| 28,851 |
| 49 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
| (86,934 | ) | (58,109 | ) | 39,174 |
| 33,632 |
| 5,542 |
| 16 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on loans |
|
|
|
|
|
|
|
|
|
|
|
|
| (46,125 | ) | (32,370 | ) | (46,125 | ) | (32,370 | ) | (13,755 | ) | 42 | % |
Loan procurement amortization expense |
|
|
|
|
|
|
|
|
|
|
|
|
| (1,998 | ) | (2,057 | ) | (1,998 | ) | (2,057 | ) | 59 |
| -3 | % |
Write-off of loan procurement cost due to early extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
|
| (1,907 | ) | (93 | ) | (1,907 | ) | (93 | ) | (1,814 | ) | 1951 | % |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
| 1,341 |
| 2,405 |
| 1,341 |
| 2,405 |
| (1,064 | ) | -44 | % |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
| 191 |
| (47 | ) | 191 |
| (47 | ) | 238 |
| -507 | % |
Total other expense |
|
|
|
|
|
|
|
|
|
|
|
|
| (48,498 | ) | (32,162 | ) | (48,498 | ) | (32,162 | ) | (16,336 | ) | 51 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE MINORITY INTERESTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (9,324 | ) | 1,470 |
| (10,794 | ) | -734 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 773 |
| (113 | ) | 886 |
| -784 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (8,551 | ) | 1,357 |
| (9,908 | ) | -730 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 32 |
| (32 | ) | -100 | % |
Gain on sale of storage facilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 179 |
| (179 | ) | -100 | % |
Income from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 211 |
| (211 | ) | -100 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ (8,551 | ) | $ 1,568 |
| (10,119 | ) | -645 | % |
Same-store revenues increased from $117.9$201.2 million in 2005the 2007 period to $121.8$209.0 million in 2006,the 2008 period, an increase of $3.9$7.8 million, or 3%4%. This increase is primarily attributable to an increase in net rent per occupied square foot of 4.5% during the 2008 period as compared to the 2007 period. Same-store property operating expenses increased from $41.1$78.7 million in 20052007 to $45.6$80.5 million in 2006,2008, an increase of $4.5$1.8 million, or 10%2%. ThisThe increase wasin our same-store facilities’ operating expenses in the 2008 period as compared to the 2007 period primarily attributablerelates to increased marketing, insurance expense, payroll expense, real estate taxes, repairs and maintenance expense, and other operating expenses.utilities expense of $0.7 million, $0.3 million and $0.5 million, respectively.
Non-GAAP Financial Measures
NOI
We define net operating income, which we refer to as “NOI,” as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income:income (loss): interest expense on loans, loan procurement amortization expense, early extinguishment of debt, the charge incurred to acquire U-Store-It Mini Warehouse Co., minority interest, loss on sale of storage facilities,noncontrolling interests, other, depreciation and amortization, lease abandonment charge, general and administrative/management fees toadministrative, and general and administrative - related party; and deducting from net income: income from discontinued operations, gains on sale of self-storage facilities, other, and interest income. NOI is not a measure of performance calculated in accordance with GAAP.
We use NOI as a measure of operating performance at each of our facilities, and for all of our facilities in the aggregate. NOI should not be considered as a substitute for operating income, net income, cash flows provided by operating, investing and financing activities, or other income statement or cash flow statement data prepared in accordance with GAAP.
We believe NOI is useful to investors in evaluating our operating performance because:
· It is one of the primary measures used by our management and our facility managers to evaluate the economic productivity of our facilities, including our ability to lease our facilities, increase pricing and occupancy and control our property operating expenses;
· It is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets; and
· We believe it helps our investors to meaningfully compare the results of our operating performance from period to period by removing the impact of our capital structure (primarily interest expense on our outstanding indebtedness) and depreciation of our basis in our assets from our operating results.
There are material limitations to using a measure such as NOI, including the difficulty associated with comparing results among more than one company and the inability to analyze certain significant items, including depreciation and interest expense, that directly affect our net income. We compensate for these limitations by considering the economic effect of the excluded expense items independently as well as in connection with our analysis of net income. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.
Cash Flows
Comparison of the Year Ended December 31, 20062009 to the Year Ended December 31, 2008
A comparison of cash flow provided by operating, investing and financing activities for the years ended December 31, 2009 and 2008 is as follows:
|
| Year Ended December 31, |
|
|
| |||||
Net cash flow provided by (used in): |
| 2009 |
| 2008 |
| Change |
| |||
|
| (in thousands) |
|
|
| |||||
Operating activities |
| $ | 62,214 |
| $ | 67,012 |
| $ | (4,798 | ) |
Investing activities |
| $ | 98,852 |
| $ | 27,177 |
| $ | 71,675 |
|
Financing activities |
| $ | (62,042 | ) | $ | (94,962 | ) | $ | 32,920 |
|
Cash flows provided by operating activities for the year ended December 31, 2009 and 2008 were $62.2 million and $67.0 million, respectively, a decrease of $4.8 million. The decrease primarily relates to reduced levels of net operating income in 2009 as compared to 2008 of $5.6 million and a $1.0 million decrease in other assets during the 2009 period as compared to the 2008 period as a result of the timing of certain payments offset by a $2.4 million reduction in general and administrative expenses during the 2009 period as compared to the 2008 period.
Cash provided by investing activities was $98.9 million for the year ended December 31, 2009 and $27.2 million for the year ended December 31, 2008, an increase of $71.7 million. The increase primarily relates to increased proceeds from property dispositions of $11.4 million in the 2009 period as compared to the 2008 period, net proceeds received from the closing of the a joint venture in August 2009 of approximately $48.7 million with no similar transactions during the 2008 period as well as higher acquisition activity in the 2008 period (one facility for an aggregate purchase price of $13.3 million) relative to the 2009 period (no facility acquisition activity).
Cash used in financing activities decreased from $95.0 million in 2008 to $62.0 million in 2009, a decrease of $33.0 million. The decrease relates primarily to increased net debt payoffs of $158.5 million during the 2009 period as compared to the 2008 period, an increase of $16.1 million in loan procurement costs related to the origination of 17 new secured financings during 2009, as well as the new secured term loan in December 2009, offset by proceeds of approximately $170.9 million from the issuance of common shares in the 2009 period, and distributions paid at $0.72 per share in the 2008 period as compared to similar distributions paid at $0.10 per share during the 2009 period.
2005Comparison of the Year Ended December 31, 2008 to the Year Ended December 31, 2007
A comparison of cash flow operating, investing and financing activities for the years ended December 31, 20062008 and 20052007 is as follows:
|
| Year Ended December 31, |
|
|
| ||||||||||||
|
| 2006 |
| 2005 |
| Change |
| ||||||||||
|
| (in thousands) |
|
|
|
| Year Ended December 31, |
|
|
| |||||||
Net cash flow provided by (used in): |
|
|
|
|
|
|
|
| 2008 |
| 2007 |
| Change |
| |||
|
| (in thousands) |
|
|
| ||||||||||||
Operating activities |
| $ 64.6 |
| $ 46.1 |
| $ 18.5 |
|
| $ | 67,012 |
| $ | 62,699 |
| $ | 4,313 |
|
Investing activities |
| $ (248.0 | ) | $ (489.1 | ) | $ 241.1 |
|
| $ | 27,177 |
| $ | (153,401 | ) | $ | 180,578 |
|
Financing activities |
| $ 104.3 |
| $ 516.5 |
| $ (412.2 | ) |
| $ | (94,962 | ) | $ | 75,503 |
| $ | (170,465 | ) |
Cash flows provided by operations increased from $46.1operating activities for the year ended December 31, 2008 and 2007 were $67.0 million in 2005 to $64.6and $62.7 million, in 2006,respectively, an increase of $18.5 million, or 40.1%.$4.3 million. The increase is primarily attributablerelates $4.2 million increase in other assets during the 2008 period as compared to the incremental impact2007 period as a result of the 60 self-storage facilities acquired in 2006.timing of certain payments.
Cash used in or provided by investing activities decreasedchanged from $489.1a use of $153.4 million in 20052007 to $248.0proceeds of $27.2 million in 2006,2008, a decreasechange of $241.1 million, or 61.4%.$180.6 million. The decreasechange primarily relates to higher acquisition activity in cashthe 2007 period (17 facilities for an aggregate purchase price of $140.5 million) relative to the 2008 period (one facility for an aggregate purchase price of $13.3 million), higher capital improvement activity in the 2007 period, and increased property dispositions in the 2008 period as compared to the 2007 period.
Cash used in investing activities is primarily attributable to cash used to acquire 146 self-storage facilities in 2005 of $381.1 million versus cash used to acquire 60 self-storage facilities in 2006 of $312.3 as well as the use of $125.0 million of cash in 2005 to invest in marketable securities.
Cashor provided by financing activities decreasedchanged from $516.5proceeds of $75.5 million in 20052007 to $104.3a use of $95.0 million in 2006,2008, a decreasechange of $412.2$170.5 million. The change relates primarily to net borrowings of $148.4 million or 79.8%. This decrease is primarily attributable toduring the proceeds from the follow-on offering in 2005, which generated approximately $378.7 million and increased distributions paid to shareholders and minority partners in 20062007 period as compared to 2005net principal payments of $22.1$50.0 million in the 2008 period and $3.7 million, respectively.
Comparison ofdistributions paid at $0.72 per share in the Year Ended December 31, 20052008 period as compared to similar distributions paid at $1.16 per share during the Year Ended December 31,2004
A comparison of cash flow operating, investing and financing activities for the years ended December 31, 2005 and 2004 is as follows:2007 period.
|
| Year Ended December 31, |
|
|
| ||
|
| 2005 |
| 2004 |
| Change |
|
|
| (in thousands) |
| ||||
Net cash flow provided by (used in): |
|
|
|
|
|
|
|
Operating activities |
| $ 46.1 |
| $ 34.9 |
| $ 11.2 |
|
Investing activities |
| $ (489.1 | ) | $ (237.3 | ) | $ (251.8 | ) |
Financing activities |
| $ 516.5 |
| $ 220.2 |
| $ 296.3 |
|
(1) The twelve months ended December 31, 2004 represents results for the Company from October 21, 2004 to December 31, 2004 and combined operating results for the Predecessor from January 1, 2004 to October 20, 2004.
Cash provided by operations increased from $34.9 million in 2004 to $46.1 million in 2005, an increase of $11.2 million, or 32.1%. The increase is primarily attributable to the incremental impact of 146 self-storage facilities acquired in 2005.
Cash used in investing activities increased from $237.3 million in 2004 to $489.1 million in 2005, an increase of $251.8 million, or 106.1%. The increase is primarily attributable to 146 self-storage facilities acquired in 2005 versus 46 self-storage facilities acquired in 2004.
Cash provided by financing activities increased from $220.2 million in 2004 to $516.5 million in 2005, an increase of $296.3 million, or 134.5%. This increase is primarily attributable to the proceeds from the follow-on offering of approximately $378.7 million and the completion of 2005 financings of approximately $232.5 million compared to proceeds from the IPO and new borrowings totaling approximately $695.0 million, partially offset by the repayment of certain existing loans in 2004 of approximately $585.6 million.
Liquidity and Capital Resources
As of December 31, 2006, we had approximately $19.7 million in available cash and cash equivalents. In addition, we have approximately $160.0 million of available borrowings under our revolving credit facility.
In February 2006, our operating partnership entered into a new three-year, $250.0 million unsecured revolving credit facility. The credit facility allowed us to increase the amount that could be borrowed up to $350.0 million at a later date. The facility was scheduled to mature in February 2009, with the option for a one-year extended maturity date. Borrowings under the facility bore interest, at our option, at either an alternative base rate or a Eurodollar rate, in each case, plus an applicable margin depending on our leverage ratio. The alternative base interest rate is a fluctuating rate equal to the higher of the prime rate or the sum of the federal funds effective rate plus 50 basis points. The applicable margin for the alternative base rate ranged from 0.15% to 0.60%. The Eurodollar rate is a periodic fixed rate equal to LIBOR. The applicable margin for the Eurodollar rate ranged from 1.15% to 1.60%. We used the credit facility principally to finance acquisitions, development of self-storage facilities, debt repayments and for general working capital purposes. Upon entering into this agreement, we utilized the facility to repay a $30.0 million 60-day term loan. Amounts borrowed under this facility were repaid using proceeds from a new credit facility in November 2006.Liquidity Overview
In November 2006, we and our operating partnership entered into a 30-day, unsecured $50 million term loan agreement with Wachovia Bank, National Association as the lender. The term loan bore interest at a variable rate of LIBOR plus 115 basis points. The loan proceeds, along with borrowings under our revolving credit facility, were used to finance the repayment of certain maturing secured loans. The loan was paid in full from proceeds obtained upon entering into a new revolving credit facility in November 2006.
In November 2006, we and our operating partnership entered into a new three-year $450.0 million unsecured credit facility with Wachovia Capital Markets, LLC and Keybanc Capital Markets, replacing our existing $250.0 million unsecured revolving facility. The facility consists of a $200 million term loan and a $250 million revolving credit facility. The new facility has a three-year term with a one-year extension option and scheduled termination in November 2009. Borrowings under the credit facility bear interest, at our option, at either an alternative base rate or a Eurodollar rate, in each case, plus an applicable margin based on our leverage ratio or
our credit rating. The alternative base interest rate is a fluctuating rate equal to the higher of the prime rate or the sum of the federal funds effective rate plus 50 basis points. The applicable margin for the alternative base rate will vary from 0.00% to 0.50% depending on our leverage ratio prior to achieving an investment grade rating, and will vary from 0.00% to 0.25% depending on our credit rating after achieving an investment grade rating. The Eurodollar rate is a rate of interest that is fixed for interest periods of one, two, three or six months based on the LIBOR rate determined two business days prior to the commencement of the applicable interest period. The applicable margin for the Eurodollar rate will vary from 1.00% to 1.50% depending on our leverage ratio prior to achieving an investment grade rating, and will vary from 0.425% to 1.00% depending on our credit rating after achieving an investment grade rating.
Our ability to borrow under this new credit facility will be subject to our ongoing compliance with the following financial covenants, among others:
· Maximum total indebtedness to total asset value of 65%;
· Minimum interest coverage ratio of 2.0:1.0;
· Minimum fixed charge coverage ratio of 1.6:1.0; and
· Minimum tangible net worth of $673.2 million plus 75% of net proceeds from future equity issuances.
Our cash flow from operations has historically been one of our primary sources of liquidity to fund debt service, distributions and capital expenditures. We derive substantially all of our revenue from customers who lease space from us at our facilities. Therefore, our ability to generate cash from operations is dependent on the rents that we are able to charge and
collect from our customers. While weWe believe that the facilities in which we invest — self-storage facilities — are less sensitive than other real estate product types to current near-term economic downturns,downturns. However, prolonged economic downturns will adversely affect our cash flowflows from operations.
In order to qualify as a REIT for federal income tax purposes, we are required to distribute at least 90% of our REIT taxable income, excluding capital gains, to our shareholders on an annual basis or pay federal income tax.
The nature of our business, coupled with the requirement that we distribute a substantial portion of our income on an annual basis, will cause us to have substantial liquidity needs over both the short termshort-term and the long term.
Our short-term liquidity needs consist primarily of funds necessary to pay operating expenses associated with our facilities, refinancing of certain mortgage indebtedness, interest expense and scheduled principal payments on debt, expected distributions to limited partners and shareholders and recurring capital expenditures. These expenses, as well as the amount of recurring capital expenditures that we incur, will vary from year to year, in some cases significantly. For 2007 weWe expect to incur costs forsuch recurring capital expenditures ofremaining in the 2010 fiscal year to be approximately $7 million to $10$9 million. We expectIn addition, our currently scheduled principal payments on debt, including borrowings outstanding on the credit facility and secured term loans, are approximately $114.5 million in 2010 and $90.5 million in 2011.
Our most restrictive debt covenants limit the amount of additional leverage we can add; however, we believe the sources of capital described above are adequate to meetexecute our short-termcurrent business plan and remain in compliance with our debt covenants.
Our liquidity needs through cash generated from operations and, if necessary, from borrowings under our revolving credit facility.
Our long-term liquidity needsbeyond 2010 consist primarily of funds necessary to pay forcontractual obligations which include repayments of indebtedness at maturity, as well as potential discretionary expenditures such as (i) non-recurring capital expenditures; (ii) redevelopment of operating facilities; (iii) acquisitions of additional facilities; and (iv) development of new facilities, redevelopment of operating facilities, non-recurring capital expenditures, acquisitions of facilities and repayment of indebtedness at maturity. In particular, we intend to actively pursue the acquisition of additional facilities, which will require additional capital. We do not expect that we will have sufficient funds on hand to cover these long-term cash requirements.facilities. We will have to satisfy theseour needs through either additional borrowings, including borrowings under oura new or revised revolving credit facility, sales of common or preferred shares and/or cash generated through facility dispositions and joint venture transactions.
We
Notwithstanding the discussion above, we believe that, as a publicly traded REIT, we will have access to multiple sources of capital to fund long-term liquidity requirements, including the incurrence of additional debt and the issuance of additional equity. However, due to our limited history as a public company, we cannot provide any assurance that this will be the case. Our ability to incur additional debt will be dependent on a number of factors, including our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders. In addition dislocation in the United States debt markets may significantly reduce the availability and increase the cost of long-term debt capital, including conventional mortgage financing and commercial mortgage-backed securities financing. There can be no assurance that such capital will be readily available in the future. Our ability to access the equity capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about us.
Current and Expected Sources of Cash Excluding Credit Facility
As of December 31, 2009, we had approximately $102.8 million in available cash and cash equivalents. In addition, we had approximately $250.0 million of availability for borrowings under our revolving credit facility.
Bank Credit Facilities
On December 8, 2009, the Company and its Operating Partnership entered into a three-year, $450 million senior secured credit facility (the “secured credit facility”), consisting of a $200 million secured term loan and a $250 million secured revolving credit facility. The secured credit facility is secured by mortgages on borrowing base properties. The outstanding balance on the Company’s secured credit facility as of December 31, 2009 was comprised of $200 million of secured term loan borrowings. As of December 31, 2009, approximately $250 million was available under the Company’s secured credit facility. Borrowings under the secured credit facility bear interest ranging from 3.25% to 4.00% over LIBOR, with a LIBOR floor of 1.5%, depending on our leverage ratio. At December 31, 2009, borrowings under the secured credit facility had a weighted average interest rate of 5.0% and the Company was in compliance with all financial covenants of the agreement.
Our ability to borrow and extend the maturity date under this secured credit facility and secured term loan will be subject to our ongoing compliance with the following financial covenants, among others:
· Maximum total indebtedness to total asset value of 65% (67.5% in first year);
· Minimum fixed charge coverage ratio of 1.45:1.0; and
· Minimum tangible net worth of $827.0 million plus 75% of net proceeds from future equity issuances.
Further, under our secured credit facility, we are restricted from paying distributions on our common shares that would exceed an amount equal to the greater of (i) 95% of our funds from operations, and (ii) such amount as may be necessary to maintain our REIT status.
We are currently in compliance with all of our covenants and anticipate being in compliance with all of our covenants through the duration of the term of the credit facility and secured term loan, including any extension period.
The secured credit facility replaced the prior, three-year $450 million unsecured credit facility, which was entered into in November 2006, consisting of $200 million in an unsecured term loan and $250 million in unsecured revolving loans. The balance of the unsecured credit facility was paid off in December 2009. Borrowings under the unsecured credit facility bore interest, at our option, at either an alternative base rate or a Eurodollar rate, in each case, plus an applicable margin based on our leverage ratio or our credit rating. The alternative base interest rate was a fluctuating rate equal to the higher of the prime rate or the sum of the federal funds effective rate plus 50 basis points. The applicable margin for the alternative base rate varied from 0.00% to 0.50% depending on our leverage ratio.
On September 14, 2007, the Company and its Operating Partnership entered into a credit agreement that allowed for total secured term loan borrowings of $50.0 million and subsequently amended the agreement on April 3, 2008 to allow for total secured term loan borrowings of $57.4 million. Each term loan bore interest at either an alternative base rate or a Eurodollar rate, at our option, in each case plus an applicable margin. The outstanding term loans were secured by a pledge by our Operating Partnership of all equity interests in YSI RT LLC, the wholly-owned subsidiary of the Operating Partnership that acquired eight self-storage facilities in September 2007 and one self-storage facility in May 2008. The balance of the term loans was paid off on August 11, 2009.
During 2007 and 2008, the Company entered into interest rate swap agreements designated as cash flow hedges that are designed to reduce the impact of interest rate changes on its variable rate debt. The swap agreements effectively fixed the 30-day LIBOR interest rate on $50 million of borrowings at 4.7725% per annum, $25 million of borrowings at 4.716% per annum and on $25 million of borrowings at 2.3400% per annum, in each case until they matured on November 20, 2009. Additionally, the Company entered into interest rate cap agreements on $40 million of LIBOR based borrowings at 5.50% per annum that matured in June 2008. In May 2008, the Company entered into interest rate swap agreements for notional principal amounts aggregating $200 million, that effectively fixed the 30-day LIBOR interest rate on $200 million of LIBOR based borrowings at 2.7625% that matured on November 20, 2009.
Other Material Changes in Financial Position
|
|
| December 31, |
| Increase |
|
| December 31, |
| Increase |
| |||||||
|
|
| 2006 |
| 2005 |
| (decrease) |
|
| 2009 |
| 2008 |
| (decrease) |
| |||
|
|
| (in thousands) |
|
| (in thousands) |
| |||||||||||
Selected Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Storage facilities — net |
| $ 1,566,815 |
| $ 1,246,295 |
| $ 320,520 |
| |||||||||||
Storage facilities, net |
| $ | 1,430,533 |
| $ | 1,559,958 |
| $ | (129,425 | ) | ||||||||
Cash and cash equivalents | Cash and cash equivalents |
| 19,716 |
| 98,899 |
| (79,183 | ) |
| $ | 102,768 |
| $ | 3,744 |
| $ | 99,024 |
|
Marketable Securities |
| — |
| 95,170 |
| (95,170 | ) | |||||||||||
Notes receivable, net |
| $ | 20,112 |
| $ | — |
| $ | 20,112 |
| ||||||||
|
|
|
|
|
|
|
| |||||||||||
Selected Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Revolving credit facility | Revolving credit facility |
| 90,500 |
| — |
| $ 90,500 |
|
| $ | — |
| $ | 172,000 |
| $ | (172,000 | ) |
Unsecured term loan |
| 200,000 |
| — |
| 200,000 |
| |||||||||||
Unecured term loan |
| $ | — |
| $ | 200,000 |
| $ | (200,000 | ) | ||||||||
Secured term loan |
| $ | 200,000 |
| $ | 57,419 |
| $ | 142,581 |
| ||||||||
Mortgage loans and notes payable | Mortgage loans and notes payable |
| 588,930 |
| 669,282 |
| (80,352 | ) |
| $ | 569,026 |
| $ | 548,085 |
| $ | 20,941 |
|
Storage facilities, increased $320.5net decreased $129.4 million cashduring 2009 primarily as a result of $73.6 million of depreciation expense recognized during 2009 and $75.2 million related to the 2009 dispositions, offset by fixed asset additions. Cash and cash equivalents decreased $79.2increased $99.0 million and marketable securities decreased $95.2 million from December 31, 2005 to December 31, 2006, primarily due to proceeds from dispositions and the acquisitionorigination of 60 self-storage facilities17 new secured term loans during the year ended December 31, 2006 and a portion2009. Notes receivable, net consists of themultiple promissory notes related financing activity. Borrowings during 2006 under theto storage facility dispositions.
Our revolving credit facility decreased $172.0 million as a result of multiple paydowns related to proceeds from the 2009 dispositions, and the unsecured term loan of $90.5decreased $200 million and $200.0 million, respectively, were useddue to fund a portionthe payoff of the facilities acquired duringunsecured credit facility in 2009. The secured term loan balance increased $142.6 million due to the yearclosing of the secured credit facility and to repay certain mortgagerelated $200 million secured term loan in December 2009 offset by the repayment of $57.4 million of term loans in August 2009. Mortgage loans and notes payable.payable increased $20.9 million due to the origination of 17 new secured financings during 2009, offset by scheduled principal payments of several mortgages during the year.
Contractual Obligations
The following table summarizes our known contractual obligations as of December 31, 2006:2009 (in thousands):
|
| Payments Due by Period |
|
| Payments Due by Period |
| |||||||||||||||||||||||||||
|
|
|
| Less Than |
|
|
|
|
| More Than |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 and |
| |||||||
|
| Total |
| 1 Year |
| 1-3 Years |
| 3-5 Years |
| 5 Years |
|
| Total |
| 2010 |
| 2011 |
| 2012 |
| 2013 |
| 2014 |
| thereafter |
| |||||||
Mortgage loans and notes payable (a) |
| $ 587,423 |
| $ 24,814 |
| $ 111,315 |
| $ 200,549 |
| $ 250,744 |
|
| $ | 568,795 |
| $ | 114,516 |
| $ | 90,541 |
| $ | 163,817 |
| $ | 26,238 |
| $ | 91,091 |
| $ | 82,592 |
|
Revolving credit facility and unsecured term loan |
| 290,500 |
| — |
| 290,500 |
| — |
| — |
| ||||||||||||||||||||||
Revolving credit facility and secured term loans (b) |
| 200,000 |
| — |
| — |
| 200,000 |
| — |
| — |
| — |
| ||||||||||||||||||
Interest payments |
| 190,652 |
| 50,772 |
| 81,439 |
| 36,506 |
| 21,935 |
|
| 129,372 |
| 39,447 |
| 30,066 |
| 28,106 |
| 12,558 |
| 12,644 |
| 6,551 |
| |||||||
Contractual capital lease obligations |
| 17 |
| 17 |
| — |
| — |
| — |
| ||||||||||||||||||||||
Ground leases and third party office lease |
| 515 |
| 146 |
| 126 |
| 88 |
| 155 |
|
| 697 |
| 149 |
| 149 |
| 149 |
| 149 |
| 101 |
| — |
| |||||||
Related party office leases |
| 3,796 |
| 474 |
| 921 |
| 928 |
| 1,473 |
|
| 2,401 |
| 453 |
| 475 |
| 475 |
| 499 |
| 499 |
| — |
| |||||||
Software contracts |
| 1,208 |
| 104 |
| 828 |
| 276 |
| — |
| ||||||||||||||||||||||
Software and service contracts |
| 763 |
| 763 |
| — |
| — |
| — |
| — |
| — |
| ||||||||||||||||||
Employment contracts |
| 3,340 |
| 1,475 |
| 1,331 |
| 533 |
| — |
|
| 1,295 |
| 1,295 |
| — |
| — |
| — |
| — |
| — |
| |||||||
|
| $ 1,077,450 |
| $ 77,802 |
| $ 486,461 |
| $ 238,880 |
| $ 274,308 |
|
| $ | 903,323 |
| $ | 156,623 |
| $ | 121,231 |
| $ | 392,547 |
| $ | 39,444 |
| $ | 104,335 |
| $ | 89,143 |
|
(a) Amounts do not include unamortized discounts/premiums.
(b) Interest on variable rate debt calculated using LIBOR of 1.50% plus a spread of 3.50%.
We expect that the contractual obligations owed in 20072010 will be satisfied by a combination of cash generated from operations and from draws on the revolving credit facility.
Off-Balance Sheet Arrangements
We do not currently have any off-balance sheet arrangements.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company’s future income, cash flows and fair values relevant to financial instruments depend upon prevailing interest rates.
Market Risk
Our investment policy relating to cash and cash equivalents is to preserve principal and liquidity while maximizing the return through investment of available funds. The carrying value of these investments approximates fair value on the reporting dates.
At December 31, 2005 we held investments in highly liquid auction rate securities (“ARS”) in order to generate higher returns than typical money market investments. ARS typically are high credit quality, generally achieved with municipal bond insurance. Credit risks are eased by the historical track record of bond insurers which back a majority of this market. Although rare, sell orders for any security traded through a Dutch auction process could exceed bids. Such instances are usually the result of a drastic deterioration of issuer credit quality. Should there be a failed auction, we may be unable to liquidate our position in the securities in the near term. We did not hold any ARS at December 31, 2006.
Effect of Changes in Interest Rates on our Outstanding Debt
The analysis below presents the sensitivity of the market value of our financial instruments to selected changes in market rates. The range of changes chosen reflects our view of changes which are reasonably possible over a one-year period. Market values are the present value of projected future cash flows based on the market rates chosen.
Our financial instruments consist of both fixed and variable rate debt. As of December 31, 2006,2009, our consolidated debt consisted of $588.9$569.0 million in fixed rate loans payable $90.5 million borrowings under our variable rate revolving credit facility and $200.0 million in a variable rate unsecured term loan. All financial instruments were entered into for other than trading purposes and the net market value of these financial instruments is referred to as the net financial position. Changes in interest rates have different impacts on the fixed and variable rate portions of our debt portfolio. A change in interest rates on the fixed portion of the debt portfolio impacts the net financial instrument position, but has no impact on interest incurred or cash flows. A change in interest rates on the variable portion of the debt portfolio impacts the interest incurred and cash flows, but does not impact the net financial instrument position.
If market rates of interest on our variable rate debt increase by 1%, the increase in annual interest expense on our variable rate debt would decrease future earnings and cash flows by approximately $2.9$0.2 million a year. If market rates of interest on our variable rate debt decrease by 1%, the decrease in interest expense on our variable rate debt would increase future earnings and cash flows by approximately $2.9$0.2 million a year.
If market rates of interest increase by 1%, the fair value of our outstanding fixed-rate mortgage debt would decrease by approximately $23.1$12.9 million. If market rates of interest decrease by 1%, the fair value of our outstanding fixed-rate mortgage debt would increase by approximately $24.4$13.5 million.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Financial statements required by this item appear with an Index to Financial Statements and Schedules, starting on page F-1 of this report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Background
As part of management’s ongoing review of our accounting policies and internal control over financial reporting, on February 27, 2007, management determined that there was a material weakness in the operation of our internal controls over financial reporting as they existed at December 31, 2005, related to accounting errors that resulted in a misclassification of marketable securities held at December 31, 2005 as cash and cash equivalents. This weakness led to the restatement in this Annual Report on Form 10-K of our results for the year ended December 31, 2005 and the period January 1, 2004 through October 20, 2004 and October 21, 2004 through December 31, 2004 and each of the interim periods during 2006. In connection with correcting this error, management has restated the prior period financial statements for additional historical errors related to cash and cash equivalents, marketable securities, restricted cash, distributions payable, rental revenues, workers compensation expense, loan procurement cost amortization and several other matters. A more detailed description of the restatements for these periods is included in Note 2 of the notes to the consolidated and combined financial statements set forth in item 8 of this report.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under
As of the Exchange Act is recorded, processed, summarized and reported withinend of the time periods specifiedperiod covered by the SEC and that such information is accumulated and communicated to management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow for timely decisions regarding required disclosure. In connection with the filing of this Annual Report on Form 10-K for the year ended December 31, 2006,report, we carried out an evaluation, was performed under the supervision and with the participation of our management, including our CEOthe Chief Executive Officer (“CEO”) and CFO,Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in RuleRules 13a-15(e) under the Securities Exchange Act)Act of 1934, as of December 31, 2006.amended (the “Exchange Act”)). Based uponon that evaluation, the CEO and the CFO have concluded that our disclosure controls and procedures were not effective asare effective.
Changes in Internal ControlsControl Over Financial Reporting
In connection with the preparation of its Annual Report on Form 10-K, the Company identified certain accounting errors that led it to conclude that its previously issued financial statements should be restated due to a misclassification of marketable securities held at December 31, 2005 as cash and cash equivalents. In connection with correcting this error, management restated the prior period financial statements for additional historical errors related to cash and cash equivalents, marketable securities, restricted cash, distributions payable, rental revenues, workers compensation expense, loan procurement cost amortization, and several other matters. In connection with the restatement, management determined that there were material weaknesses in the operation of our internal controls over financial reporting, as more fully described below. A material weakness is a control deficiency, or a combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.
· We did not have sufficient personnel in our accounting department with requisite skills and competencies or appropriate depth of experience to assure the preparation of accurate interim and annual financial statements on a timely basis in accordance with generally accepted accounting principles.
· We did not have adequate monitoring controls and the appropriate personnel with the requisite skills and competencies to execute an adequate level of oversight to accurately account for the results of our operations, which adversely affected our ability to report our financial results in a timely and accurate manner.
· We lacked robust risk assessment processes, including strategic plans, that clearly defined and communicated our goals and objectives throughout our organization.
These control weaknesses resulted in a more than remote likelihood that a material misstatement would not be prevented or detected by management before SEC filing deadlines.
We have taken the following remediation activities to address these material weaknesses:
· On April 24, 2006, the Company announced that Robert J. Amsdell would relinquish the role of Chief Executive Officer and retain the role of non-executive Chairman
· On April 24, 2006, the Company hired a new President and Chief Executive Officer, Dean Jernigan
· On June 5, 2006, the Company hired a new Chief Financial Officer, Christopher P. Marr
· During the third quarter of 2006, the Company terminated its relationship with its former Treasurer and Principal Accounting Officer and its former Controller and Compliance Officer
· On July 10, 2006, the Company hired a new Senior Vice President of Operations, Stephen R. Nichols
· On December 11, 2006, the Company hired a new Chief Accounting Officer, Timothy M. Martin
· On February 5, 2007, the Company hired a new manager of financial reporting
· On February 13, 2007, the Company’s non-executive Chairman of the Board retired
· On February 19, 2007, the Company terminated its relationship with its former Chief Operating Officer and President of its development subsidiary
· The Company will be moving its Finance, Accounting and Information Technology departments to the Philadelphia area and hiring a new finance and accounting staff. We believe this represents a significantThere has been no change with respect to the personnel responsible for the effectiveness of transaction processing and review activities in our control environment
· During the third quarter of 2006 the Company completed its conversion to a new revenue management software system, Centershift® STORE TM , which provides the Company with an enhanced and automated rental management and point-of-sale software solution. This new system did not require customization by the Company or its vendor. Pre-implementation testing and post-implementation reviews were conducted by management to ensure that internal controls surrounding the system implementation process, the applications and the closing process were properly designed to prevent material financial statement errors
· In December 2006, the Company and its Board of Trustees completed a comprehensive strategic planning process
Management believes, as a result of these changes, we have sufficient individuals that collectively possess a strong background, experience and expertise related to SEC reporting and leading public company accounting and finance functions. However, due to the material weaknesses in our internal control over financial reporting as(as defined in RulesRule 13a-15(f) and 15d-15(f) under the Exchange Act, and as described in this Item 9A, and the factAct) during our most recent fiscal quarter, that the significant scope and timing of these remediation steps did not permit observationhas materially affected, or is reasonably likely to materially affect, our internal control over an appropriate period of time for us to adequately test their effectiveness, our disclosure controls and procedures were not effective as of December 31, 2006 to assure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is appropriately recorded, processed, summarized and reported within the periods specified in the SEC’s rules.financial reporting.
Management’s Report on Internal Control Over Financial Reporting
Management’s report on internal control over financial reporting and the attestation report of Deloitte & Touche LLP, our independent registered public accounting firm, on management’s assessment of internal control over financial reporting areis set forth on pages F-3 and F-4page F-2 of this Annual Report on Form 10-K, and areis incorporated herein by reference.
Not applicable.
ITEM 10. TRUSTEES AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
We have adopted a Code of Ethics for all of our Principal Executive Officeremployees, officers and Senior Financial Officers,trustees, which is available on our website at www.u-store-it.com.www.ustoreit.com. We intend to disclose any amendment to, or a waiver from, a provision of our Code of Ethics for our Principal Executive Officer and Senior Financial Officers on our website within four business days following the date of the amendment or waiver.
The remaining information required by this item regarding trustees, executive officers and corporate governance is hereby incorporated by reference to the material appearing in the Proxy Statement for the Annual Shareholders Meeting to be held in 20072010 (the “Proxy Statement”) under the captions “Proposal 1: Election of Trustees,” “Executive Officers” and “Meetings and Committees of the Board of Trustees.” The information required by this item regarding compliance with Section 16(a) of the Exchange Act is hereby incorporated by reference to the material appearing in the Proxy Statement under the caption “Other Matters — Section“Section 16(a) Beneficial Ownership Reporting Compliance.”
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is hereby incorporated by reference to the material appearing in the Proxy Statement under the captions “Compensation Discussion and Analysis,” “Executive Compensation and Other Information,” “Potential Payments Upon Termination or Change in Control,” “Trustee Compensation,Committee Report,” “Meetings and Committees of the Board of Trustees — Compensation Committee Interlocks and Insider Participation,” “Compensation Discussion and “Compensation Committee Report.Analysis,” “Executive Compensation,” “Potential Payments Upon Termination or Change in Control,” and “Trustee Compensation.”
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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
The information regarding security ownership of certain beneficial owners and management required by this item is hereby incorporated by reference to the material appearing in the Proxy Statement under the caption “Security Ownership of CertainManagement” and ““Security Ownership of Beneficial Owners and Management.Owners.”
The following table sets forth certain information regarding our equity compensation plans as of December 31, 2006.2009.
Plan Category |
| Number of securities to be issued upon exercise of outstanding options, warrants and rights |
| Weighted-average exercise price of outstanding options, warrants and rights |
| Number of securities remaining available for future issuance under equity compensation plans (excluding securities |
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Equity compensation plans approved by shareholders |
| 1,278,500 | (1) | $ | 17.62 | (2) | 1,151,173 |
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Equity compensation plans not approved by shareholders |
| — |
| — |
| — |
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Total |
| 1,278,500 |
| $ | 17.62 |
| 1,151,173 |
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| Number of securities to |
| Weighted-average |
| Number of securities remaining |
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Equity compensation plans approved by shareholders |
| 4,546,304 | (1) | $ | 10.71 | (2) | 1,146,592 |
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Equity compensation plans not approved by shareholders |
| — |
| — |
| — |
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Total |
| 4,546,304 |
| $ | 10.71 |
| 1,146,592 |
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(1) |
| Excludes
14,781 shares subject to deferred shares credited to the account of our Trustees in the U- Store-It Trust Deferred Trustees Plan. |
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(2) |
| This number reflects the weighted-average exercise price of outstanding options and has been calculated exclusive of outstanding restricted unit awards. |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND TRUSTEE INDEPENDENCE
The information required by this item is hereby incorporated by reference to the material appearing in the Proxy Statement under the captions “Corporate Governance,” “Policies and Procedures Regarding Review, Approval or Ratification of Transactions With Related Parties,Persons,” and “Transactions With Related Persons,Persons.” and “Corporate Governance — Independence of Trustees.”
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is hereby incorporated by reference to the material appearing in the Proxy Statement under the captions “Fees“Audit Committee Matters - Fees Paid to Our Independent Accountant”Registered Public Accounting Firm” and “Audit“— Audit Committee Pre-Approval Policies and Procedures.”
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Documents filed as part of this report:
1. Financial Statements.
The response to this portion of Item 15 is submitted as a separate section of this report.
2. Financial Statement Schedules.
The response to this portion of Item 15 is submitted as a separate section of this report.
3. Exhibits.
The list of exhibits filed with this report is set forth in response to Item 15(b). The required exhibit index has been filed with the exhibits.
(b) Exhibits. The following documents are filed as exhibits to this report:
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3.1* |
| Articles of Amendment and Restatement of Declaration of Trust of U-Store-It Trust, incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. |
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3.2* |
| Second Amended and Restated Bylaws of U-Store-It Trust, incorporated by reference to Exhibit 3.2 to
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4.1* |
| Form of Common Share Certificate, incorporated by reference to Exhibit 4.1 to Amendment No. 3 to the Company’s Registration Statement on Form S-11, filed on October 20, 2004, File No. 333-117848. |
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10.1* |
| Second Amended and Restated Agreement of Limited Partnership of U-Store-It, L.P. dated as of October 27, 2004, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. |
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10.2* |
| Amended and Restated Credit Agreement dated
institutions Company’s Current Report on Form 8-K, filed on |
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10.3* |
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reference to Exhibit
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10.4* |
| Form of Term Note, incorporated by reference to Exhibit Report on Form 8-K, filed on |
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| Form of Revolving Note, incorporated by reference to Exhibit Current Report on Form 8-K, filed on |
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| Form of Swingline Note, incorporated by reference to Exhibit Current Report on Form 8-K, filed on |
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| Form of Security Interest regarding fixed rate mortgage loan between YSI XX LP and
Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on November 4, 2005. |
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| Secured Promissory Note, dated November 1, 2005, between YSI XX LP and Transamerica Financial Life Insurance Company, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on November 4, 2005. |
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| Loan Agreement, dated August 4, 2005, by and between YASKY LLC and LaSalle Bank National Association, incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, filed on November 14, 2005. |
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| Loan Agreement, dated July 19, 2005, by and between YSI VI LLC and Lehman Brothers Bank, FSB, incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, filed on November 14, 2005. |
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| Loan Agreement, dated as of October 27, 2004, by and between YSI I LLC and Lehman Brothers Holdings Inc. d/b/a Lehman Capital, a division of Lehman Brothers Holdings Inc., incorporated by reference to Exhibit 10.2
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to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
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Trust, 10.3 to the Company’s Current Report on Form 8-K, filed on |
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Trust, U-Store-It, L.P. |
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on | ||
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10.2 to the Company’s Current Report on Form 8-K, filed on August | |
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reference to Exhibit
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reference to Exhibit
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Company’s Current Report on Form 8-K, filed on |
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Company’s |
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Form 10-K for the year ended December 31, 2004, filed on March 31, 2005. | |
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| Lease, dated June 29, 2005, by and between Amsdell and Amsdell and U-Store-It, L.P., incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, filed on August 12, 2005. |
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| Lease, dated June 29, 2005, by and between Amsdell and Amsdell and U-Store-It, L.P., incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, filed on August 12, 2005. |
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10.25* | Property Management Termination Agreement, by and among U-Store-It Trust, YSI Management LLC, and Rising Tide Development LLC, dated August 6, 2007, incorporated by reference to Exhibit 10.10 to the Company’s Current Report on Form 8-K, filed on August 7, 2007. | |
10.26* | Marketing and Ancillary Services Termination Agreement, by and among U-Store-It Trust, U-Store-It Mini Warehouse Co., and Rising Tide Development LLC, dated August 6, 2007, incorporated by reference to Exhibit 10.11 to the Company’s Current Report on Form 8-K, filed on August 7, 2007. | |
10.27*† | Amended and Restated Executive Employment Agreement, dated December 18, 2008, by and between U-Store-It Trust and Dean Jernigan, incorporated by reference to Exhibit 10.38 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | |
10.28*† | Amended and Restated Executive Employment Agreement, dated December 18, 2008, by and between U-Store-It Trust and Christopher P. Marr, incorporated by reference to Exhibit 10.39 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | |
10.29*† | Amended and Restated Executive Employment Agreement, dated December 18, 2008, by and between U-Store-It Trust and Timothy M. Martin, incorporated by reference to Exhibit 10.40 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. |
10.30*† | Indemnification Agreement, dated as of January 25, 2008, by and among U-Store-It Trust, U-Store-It, L.P. | |
10.31*† | Indemnification Agreement, dated as of March 22, 2007, by and among U-Store-It Trust, U-Store-It, L.P. and Marianne M. Keler, incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed on May 10, 2007. | |
10.32*† | Indemnification Agreement, dated as of December 11, 2006, by and among U-Store-It Trust, U-Store-It, L.P. and Timothy M. Martin, incorporated by reference to Exhibit 10.47 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on March 16, 2007. | |
10.33*† | Indemnification Agreement, dated June 5, 2006, by and among U-Store-It Trust, U-Store-It, L.P. and Christopher P. Marr, incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, filed on August 8, 2006. | |
10.34*† | Indemnification Agreement, dated as of April 24, 2006, by and among U-Store-It Trust, U-Store-It, L.P. and Dean Jernigan, incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on April 24, 2006 | |
10.35*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and Robert J. Amsdell, incorporated by reference to Exhibit 10.12 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.36*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and Barry L. Amsdell, incorporated by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.37*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and Todd C. Amsdell, incorporated by reference to Exhibit 10.15 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.38*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and John C. Dannemiller, incorporated by reference to Exhibit 10.17 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.39*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and Thomas A. Commes, incorporated by reference to Exhibit 10.18 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.40*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and David J. LaRue, incorporated by reference to Exhibit 10.19 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.41*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and Harold S. Haller, incorporated by reference to Exhibit 10.20 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.42*† | Indemnification Agreement, dated as of October 27, 2004, by and among U-Store-It Trust, U-Store-It, L.P. and William M. Diefenderfer III, incorporated by reference to Exhibit 10.21 to the Company’s Current Report on Form 8-K, filed on November 2, 2004. | |
10.43† | Indemnification Agreement, dated as of November 5, 2009, by and among U-Store-It Trust, U-Store-It, L.P. and John F. Remondi. | |
10.44*† | Noncompetition Agreement, dated as of December 11, 2006, by and between U-Store-It Trust and Timothy M. Martin, incorporated by reference to Exhibit 10.62 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on March 16, 2007. | |
10.45*† | Noncompetition Agreement, dated as of June 5, 2006, by and between U-Store-It Trust and Christopher P. Marr, incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, filed on August 8, 2006. | |
10.46*† | Noncompetition Agreement, dated as of April 24, 2006, by and between U-Store-It Trust and Dean Jernigan, incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, |
filed on April 24, 2006. | ||
10.47*† | Schedule of Compensation for Non-Employee Trustees of U-Store-It Trust, effective May 8, 2007, incorporated by reference to the Company’s Current Report on Form 8-K, filed on February 24, 2010. | |
10.48*† | Nonqualified Share Option Agreement, dated as of June 5, 2006, by and between U-Store-It Trust and Christopher P. Marr, incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, | |
10.49*† | Nonqualified Share Option Agreement, dated as of April 19, 2006, by and between U-Store-It Trust and Dean Jernigan, incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K, filed on April 24, 2006. | |
10.50*† | Form of Restricted Share Agreement for Non-Employee Trustees under the U-Store-It Trust 2007 Equity Incentive Plan, incorporated by reference to Exhibit 10.83 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, filed on February 29, 2008. | |
10.51*† | Form of Restricted Share Agreement for Non-Employee Trustees under the U-Store-It Trust 2004 Equity Incentive Plan, incorporated by reference to Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed on May 10, 2007. | |
10.52*† | Form of Nonqualified Share Option Agreement under the U-Store-It Trust 2007 Equity Incentive Plan, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on January 25, 2008. | |
10.53*† | Form of Nonqualified Share Option Agreement under the U-Store-It Trust 2004 Equity Incentive Plan, incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed on May 10, 2007. | |
10.54*† | Form of Performance-Vested Restricted Share Agreement under the U-Store-It Trust 2007 Equity Incentive Plan, incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed on January 25, 2008. | |
10.55*† | Form of Performance-Vested Restricted Share Agreement under the U-Store-It Trust 2004 Equity Incentive Plan, incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed on May 10, 2007. | |
10.56*† | Form of Restricted Share Agreement under the U-Store-It Trust 2007 Equity Incentive Plan, incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on January 25, 2008. | |
10.57*† | Form of Restricted Share Agreement under the U-Store-It Trust 2004 Equity Incentive Plan, incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed on May 10, 2007. | |
10.58*† | U-Store-It Trust Trustees Deferred Compensation Plan, amended and restated effective January 1, 2009, incorporated by reference to Exhibit 10.78 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | |
10.59*† | U-Store-It Trust Executive Deferred Compensation Plan, amended and restated effective January 1, 2009, incorporated by reference to Exhibit 10.79 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | |
10.60*† | U-Store-It Trust Deferred Trustees Plan, effective as of May 31, 2005, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on June 6, 2005. | |
10.61*† | 2007 Equity Incentive Plan of U-Store-It Trust, effective as of May 8, 2007, incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed on May 10, 2007. | |
10.62*† | 2004 Equity Incentive Plan of U-Store-It Trust, effective as of October 19, 2004, incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8- K, filed on November 2, 2004. | |
10.63*† | Indemnification Agreement, dated as of February 26, 2009, by and among U-Store-It Trust, U-Store-It, L.P. and Jeffrey Foster, incorporated by reference to Exhibit 10.83 to the Company’s Annual |
Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | ||
10.64*† | Severance and General Release Agreement dated February 10, 2009 by and between U-Store-It Trust and Kathleen Weigand, incorporated by reference to Exhibit 10.84 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | |
10.65*† | Severance and General Release Agreement dated December 31, 2008 by and between U-Store-It Trust and Steve Nichols, incorporated by reference to Exhibit 10.85 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 2, 2009. | |
10.66* | Contribution Agreement dated August 6, 2009 by and between YSI Venture LP LLC and HART -YSI Investor LP LLC, incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K, filed on August 7, 2009. | |
10.67* | First Amendment to Contribution Agreement dated August 13, 2009 by and between YSI Venture LP LLC and HART -YSI Investor LP LLC, incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on August 14, 2009. | |
10.68* | Amended and Restated Limited Partnership Agreement of YSI — HART LIMITED PARTNERSHIP dated August 13, 2009, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on August 14, 2009. | |
10.69* | Sales Agreement dated April 3, 2009, among the U-Store-It Trust, U-Store-It, L.P., and Cantor Fitzgerald & Co., incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K, filed on April 3, 2009 | |
10.70† | Letter Agreement dated January 9, 2009 between U-Store-It Trust and Jeffrey P. Foster | |
10.71† | Indemnification Agreement, dated as of February 23, 2010, by and among U-Store-It Trust, U-Store-It, L.P. and Piero Bussani. | |
12.1 | Statement regarding Computation of Ratios of U-Store-It Trust | |
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21.1 |
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23.1 |
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23.2 | Consent of Deloitte & Touche LLP | |
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31.1 |
| Certification of Chief Executive Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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31.2 |
| Certification of Chief Financial Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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32.1 |
| Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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Material Tax Considerations |
* | Incorporated herein by reference as above indicated. | |
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† | Denotes a management contract or compensatory plan, contract or arrangement. |
68
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d)15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
U-STORE-IT TRUST | ||
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| By: | /s/ |
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| Chief Financial Officer |
Date: March 16, 20071, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:
Signature |
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/s/ William M. Diefenderfer III |
| Chairman of the Board |
| March |
William M. Diefenderfer III |
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/s/ Dean Jernigan |
| Chief Executive Officer and Trustee |
| March |
Dean Jernigan |
| (Principal Executive Officer) |
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/s/ |
| Chief Financial Officer |
| March |
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Timothy M. Martin |
| (Principal Financial and Accounting Officer) |
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/s/ |
| Trustee |
| March |
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/s/ John C. Dannemiller |
| Trustee |
| March |
John C. Dannemiller |
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/s/ Harold S. Haller |
| Trustee |
| March |
Harold S. Haller | ||||
/s/ Daniel B. Hurwitz | Trustee | March 1, 2010 | ||
Daniel B. Hurwitz | ||||
/s/ Marianne M. Keler | Trustee | March 1, 2010 | ||
Marianne M. Keler |
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/s/ David J. LaRue |
| Trustee |
| March |
David J. LaRue |
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/s/ John R. Remondi | Trustee | March 1, 2010 | ||
John R. Remondi |
FINANCIAL STATEMENTS
INDEX TO THE CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
| Page No. | |
Consolidated |
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Management’s Report on Internal Control Over Financial Reporting |
| F-2 |
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| F-6 | |
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| F-7 | |
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| F-8 | |
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| F-9 | |
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| F-10 | |
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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Under Section 404 of the Sarbanes-Oxley Act of 2002, the Company’s management is required to assess the effectiveness of the Company’s internal control over financial reporting as of the end of each fiscal year, and report on the basis of that assessment whether the Company’s internal control over financial reporting is effective.
The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that:
· pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and the disposition of the assets of the Company;
· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that the receipts and expenditures of the Company are being made only in accordance with the authorization of the Company’s management and its Board of Trustees; and
· provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention or overriding of controls. Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of an internal control system may vary over time.
Under the supervision, and with the participation, of the Company’s management, including the principal executive officer and principal financial officer, we conducted a review, evaluation and assessment of the effectiveness of our internal control over financial reporting as of December 31, 2006,2009, based upon the Committee of Sponsoring Organizations of the Treadway Commission (COSO) criteria. In performing its assessment of the effectiveness of internal control over financial reporting, management has concluded that, as of December 31, 2006, and as a result of a material weakness in the operating effectiveness of internal control over financial reporting as described below,2009, our internal control over financial reporting was not effective based on the COSO framework.
Material Weaknesses in the Operations
The effectiveness of our Financial Reporting Controls
A material weakness, as defined under standards established by the Public Company Accounting Oversight Board’s Auditing Standard No. 2, is a control deficiency, or a combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of annual or interim financial statements would not be prevented or detected. We did not maintain effective financial reporting controls at December 31, 2006 and the interim periods ended March 31, 2006, June 30, 2006, and September 30, 2006. Specifically, (i) we did not have sufficient personnel in our accounting department with requisite skills and competencies or appropriate depth of experience to assure the preparation of accurate interim and annual financial statements on a timely basis in accordance with GAAP, (ii) we did not have adequate monitoring controls and the appropriate personnel with requisite skills and competencies to execute an adequate level of oversight to accurately account for the results of our operations, which adversely affected our ability to report our financial results in a timely and accurate manner and (iii) we lacked robust risk assessment processes, including strategic plans, that clearly defined and communicated our goals and objectives throughout our organization. These control weaknesses resulted in a more than remote likelihood that a material misstatement would not be prevented or detected by management before SEC filing deadlines. While management has taken steps to remediate these deficiencies as more fully described in Item 9A, we were unable to observe and test as operating effectively over an appropriate period of time these key changes in internal controls. As such, management has determined that these control deficiencies constitute material weaknesses at December 31, 2006.
Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 20062009, has been audited by Deloitte & ToucheKPMG LLP, an independent registered public accounting firm, as stated in their report whichthat appears in this Annual Report on Form 10-K.herein.
March 16, 20071, 2010
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the
The Board of Trustees and Shareholders of
U-Store-It TrustCleveland, OhioTrust:
We have audited management’s assessment, included within this December 31, 2006 Form 10-K of U-Store-It Trust (the “Company”) on Page F-2 under the heading of “Management’s Report on Internal Control Over Financial Reporting,” that the Company did not maintain effectiveand subsidiaries’ internal control over financial reporting as of December 31, 2006,2009, based on criteria established in InternalControl —- Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company’sCommission (COSO). U-Store-It Trust’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting.reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the Company’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment,assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control andbased on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions.opinion.
A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of theits inherent limitations, of internal control over financial reporting including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be preventedprevent or detected on a timely basis.detect misstatements. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The following material weaknesses have been identified and included in management’s assessment:
· The Company did not have sufficient personnel with the appropriate skills, training and Company-specific experience to identify and address the application of generally accepted accounting principles.
· The Company did not have adequate monitoring controls and the appropriate personnel with the requisite skills and competencies to execute an adequate level of oversight to accurately account for the results of its operations, which adversely affected its ability to report its financial results in a timely and accurate manner
· The Company lacked robust risk assessment processes, including strategic plans, that clearly defined and communicated its goals and objectives throughout its organization.
These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the consolidated balance sheet as of December 31, 2006, and the related consolidated statement of operations, shareholders’ equity, and cash flows for the year ended December 31, 2006, and the financial statement schedule as of and for the year ended December 31, 2006, of the Company and this report does not affect our report on such financial statements and financial statement schedule.
In our opinion, management’s assessment that the Company did not maintainU-Store-It Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2006, is fairly stated, in all material respects,2009, based on the criteria established in InternalControl —- Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission. Also in our opinion, because of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of December 31, 2006, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheetsheets of U-Store-It Trust and subsidiaries as of December 31, 2006,2009, and the related consolidated statementstatements of operations, shareholders’ equity, and cash flows for the year then ended, December 31, 2006, and the financial statement schedule as of and for the year ended December 31, 2006 of the Company and our report dated March 16, 20071, 2010 expressed an unqualified opinion on those financial statements and financial statement schedule and included an explanatory paragraph regarding the restatement ofconsolidated financial statements.
/s/ DELOITTE & TOUCHEKPMG LLP
Cleveland, Ohio
Philadelphia, Pennsylvania
March 16, 20071, 2010
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders of
U-Store-It Trust:
We have audited the accompanying consolidated balance sheet of U-Store-It Trust and subsidiaries as of December 31, 2009, and the related consolidated statements of operations, equity, and cash flows for the year then ended. In connection with our audit of the consolidated financial statements, we have also audited the financial statement schedule for 2009 as listed in the accompanying index. These consolidated financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audit. The accompanying consolidated financial statements of U-Store-It Trust and subsidiaries as of December 31, 2008 and for the two years then ended, were audited by other auditors whose report thereon dated March 2, 2009 (August 7, 2009, as to the retrospective effects of the application of authoritative guidance regarding noncontrolling interests discussed in Note 2), expressed an unqualified opinion on those statements, before the effects of the retrospective adjustments that were applied for the discontinued operations described in note 10 to the consolidated financial statements.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the 2009 consolidated financial statements referred to above present fairly, in all material respects, the financial position of U-Store-It Trust and subsidiaries as of December 31, 2009 and the results of their operations and their cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the 2009 information set forth therein.
We also have audited the retrospective adjustments that were applied to the 2008 and 2007 consolidated financial statements for the operations discontinued in 2009 as described in note 10 to the consolidated financial statements. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or apply any procedures to the 2008 and 2007 consolidated financial statements of the Company other than with respect to the adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2008 and 2007 consolidated financial statements taken as a whole.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), U-Store-It Trust’s internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 1, 2010 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
/s/ KPMG LLP
Philadelphia, Pennsylvania
March 1, 2010
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
U-Store-It TrustCleveland, OhioWayne, Pennsylvania
We have audited, before the accompanyingeffects of the retrospective adjustments for the discontinued operations discussed in Note 10 to the consolidated financial statements, the consolidated balance sheetssheet of U-Store-It Trust and subsidiaries (the “Company”) as of December 31, 20062008, and 2005, the related consolidated statements of operations, shareholders’ equity, and cash flows of the Company for each of the years ended December 31, 20062008 and 20052007 (the 2008 and for2007 consolidated financial statements before the period from October 21, 2004 (commencementeffects of operations) through December 31, 2004, and the relatedretrospective adjustments discussed in Note 2 to the consolidated and combinedfinancial statements of operations, owners’ equity (deficit), and cash flows of Acquiport/Amsdell (the “Predecessor”) for the period from January 1, 2004 through October 20, 2004. Our audits also included the financial statement schedule listed in the Index at Item 15.are not presented herein). These financial statements and financial statement schedule are the responsibility of the Company’s and the Predecessor’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such 2008 and 2007 consolidated financial statements, before the effects of the retrospective adjustments for the discontinued operations discussed in Note 10 to the consolidated financial statements, present fairly, in all material respects, the financial position of the CompanyU-Store-It Trust and subsidiaries as of December 31, 20062008, and 2005, the results of the Company’stheir operations and their cash flows for each of the years ended December 31, 20062008 and 2005 and for the period from October 21, 2004 (commencement of operations) through December 31, 2004, and the results of the Predecessor’s operations and cash flows for the period from January 1, 2004 through October 20, 2004,2007, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation
We were not engaged to audit, review, or apply any procedures to the basicretrospective adjustments for the discontinued operations discussed in Note 10 to the consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth herein.and, accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by other auditors.
As discussed in Note 2 to the consolidated financial statements, the accompanying 2008 and 2007 financial statements as of andhave been retrospectively adjusted for the year ended December 31, 2005 and for the period from October 21, 2004 (commencementapplication of operations) through December 31, 2004 and for the period from January 1, 2004 through October 20, 2004 have been restated.authoritative guidance regarding noncontrolling interests.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of the Company’s internal control over financial reporting as of December 31, 2006, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 16, 2007 expressed an unqualified opinion on management’s assessment of the effectiveness of the Company’s internal control over financial reporting and an adverse opinion on the effectiveness of the Company’s internal control over financial reporting because of material weaknesses.
/s/ DELOITTEDeloitte & TOUCHETouche LLP
Cleveland, OhioMarch 16, 2007Philadelphia, Pennsylvania
F-6March 2, 2009 (August 7, 2009, as to the retrospective effects of the application of authoritative guidance regarding noncontrolling interests discussed in Note 2).
U-STORE-IT TRUST AND SUBSIDIARIES
(in thousands, except share data)
|
| December 31, |
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| 2006 |
| 2005 |
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| (as restated, see Note 2) |
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ASSETS |
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Storage facilities |
| $ | 1,771,864 |
| $ | 1,386,786 |
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Accumulated depreciation |
| (205,049 | ) | (140,491 | ) | ||
|
| 1,566,815 |
| 1,246,295 |
| ||
Cash and cash equivalents |
| 19,716 |
| 98,899 |
| ||
Restricted cash |
| 14,126 |
| 18,921 |
| ||
Loan procurement costs - net of amortization |
| 7,575 |
| 9,082 |
| ||
Marketable securities |
| — |
| 95,170 |
| ||
Other assets |
| 6,475 |
| 7,599 |
| ||
Due from related parties |
| 632 |
| 355 |
| ||
Total assets |
| $ | 1,615,339 |
| $ | 1,476,321 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Revolving credit facility |
| $ | 90,500 |
| $ | — |
|
Unsecured term loan |
| 200,000 |
| — |
| ||
Mortgage loans and notes payable |
| 588,930 |
| 669,282 |
| ||
Accounts payable and accrued expenses |
| 22,590 |
| 17,128 |
| ||
Due to related parties |
| 336 |
| 74 |
| ||
Distributions payable |
| 18,197 |
| 18,131 |
| ||
Deferred revenue |
| 9,740 |
| 8,857 |
| ||
Security deposits |
| 655 |
| 685 |
| ||
Total liabilities |
| 930,948 |
| 714,157 |
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Minority interests |
| 56,898 |
| 63,695 |
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Commitments and contingencies (see Note 11) |
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Shareholders’ Equity |
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Common shares $.01 par value, 200,000,000 shares authorized, 57,335,490 and 57,010,162 shares issued and outstanding at December 31, 2006 and 2005, respectively |
| 573 |
| 570 |
| ||
Additional paid in capital |
| 794,632 |
| 790,372 |
| ||
Accumulated deficit |
| (167,712 | ) | (92,473 | ) | ||
Total shareholders’ equity |
| 627,493 |
| 698,469 |
| ||
Total liabilities and shareholders’ equity |
| $ | 1,615,339 |
| $ | 1,476,321 |
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|
| December 31, |
| December 31, |
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ASSETS |
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Storage facilities |
| $ | 1,774,542 |
| $ | 1,888,123 |
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Less: Accumulated depreciation |
| (344,009 | ) | (328,165 | ) | ||
Storage facilities, net |
| 1,430,533 |
| 1,559,958 |
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Cash and cash equivalents |
| 102,768 |
| 3,744 |
| ||
Restricted cash |
| 16,381 |
| 16,217 |
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Loan procurement costs, net of amortization |
| 18,366 |
| 4,453 |
| ||
Notes receivable, net |
| 20,112 |
| — |
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Assets held for sale |
| — |
| 2,378 |
| ||
Other assets, net |
| 10,710 |
| 10,909 |
| ||
Total assets |
| $ | 1,598,870 |
| $ | 1,597,659 |
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LIABILITIES AND EQUITY |
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Revolving credit facility |
| $ | — |
| $ | 172,000 |
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Unsecured term loan |
| — |
| 200,000 |
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Secured term loan |
| 200,000 |
| 57,419 |
| ||
Mortgage loans and notes payable |
| 569,026 |
| 548,085 |
| ||
Accounts payable, accrued expenses and other liabilities |
| 33,767 |
| 39,410 |
| ||
Distributions payable |
| 2,448 |
| 1,572 |
| ||
Deferred revenue |
| 8,449 |
| 9,725 |
| ||
Security deposits |
| 456 |
| 472 |
| ||
Liabilities related to assets held for sale |
| — |
| 22 |
| ||
Total liabilities |
| 814,146 |
| 1,028,705 |
| ||
|
|
|
|
|
| ||
Noncontrolling interests in the Operating Partnership |
| 45,394 |
| 46,026 |
| ||
|
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|
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Commitments and contingencies |
|
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|
| ||
|
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Equity |
|
|
|
|
| ||
Common shares $.01 par value, 200,000,000 shares authorized, 92,654,979 and 57,623,491 shares issued and outstanding at December 31, 2009 and December 31, 2008, respectively |
| 927 |
| 576 |
| ||
Additional paid in capital |
| 974,926 |
| 801,029 |
| ||
Accumulated other comprehensive loss |
| (874 | ) | (7,553 | ) | ||
Accumulated deficit |
| (279,670 | ) | (271,124 | ) | ||
Total U-Store-It Trust shareholders’ equity |
| 695,309 |
| 522,928 |
| ||
Noncontrolling interests in subsidiaries |
| 44,021 |
| — |
| ||
Total equity |
| 739,330 |
| 522,928 |
| ||
Total liabilities and equity |
| $ | 1,598,870 |
| $ | 1,597,659 |
|
See accompanying notes to the consolidated and combined financial statements.
U-STORE-IT TRUST AND SUBSIDIARIES (THE “COMPANY”) AND
ACQUIPORT/AMSDELL (THE “PREDECESSOR”)
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
|
| THE COMPANY |
| THE PREDECESSOR |
| ||||||||
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|
| For the |
|
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|
| ||||
|
| For the |
| Year ended |
| For the Period |
| For the Period |
| ||||
|
| Year ended |
| December 31, |
| October 21, 2004 |
| January 1, 2004 to |
| ||||
|
| December 31, |
| 2005 |
| to December 31, 2004 |
| October 20, 2004 |
| ||||
|
| 2006 |
| (as restated, see Note 2) |
| (as restated, see Note 2) |
| (as restated, see Note 2) |
| ||||
|
| (Dollars and shares in thousands, except per share data) |
| ||||||||||
|
|
|
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|
|
|
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|
| ||||
REVENUES |
|
|
|
|
|
|
|
|
| ||||
Rental income |
| $ | 197,753 |
| $ | 137,202 |
| $ | 21,410 |
| $ | 65,722 |
|
Other property related income |
| 14,902 |
| 10,001 |
| 1,452 |
| 3,211 |
| ||||
Other - related party |
| 457 |
| 405 |
| 71 |
| — |
| ||||
Total revenues |
| 213,112 |
| 147,608 |
| 22,933 |
| 68,933 |
| ||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
| 86,547 |
| 55,462 |
| 9,767 |
| 26,170 |
| ||||
Property operating expenses - related party |
| 69 |
| 43 |
| — |
| — |
| ||||
Depreciation |
| 64,729 |
| 39,949 |
| 5,800 |
| 16,528 |
| ||||
Asset write-off |
| 305 |
| — |
| — |
| — |
| ||||
General and administrative |
| 21,675 |
| 17,786 |
| 4,140 |
| — |
| ||||
General and administrative - related party |
| 613 |
| 736 |
| 114 |
| — |
| ||||
Management fees - related party |
| — |
| — |
| — |
| 3,689 |
| ||||
Total operating expenses |
| 173,938 |
| 113,976 |
| 19,821 |
| 46,387 |
| ||||
OPERATING INCOME |
| 39,174 |
| 33,632 |
| 3,112 |
| 22,546 |
| ||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
| ||||
Interest: |
|
|
|
|
|
|
|
|
| ||||
Interest expense on loans |
| (46,125 | ) | (32,370 | ) | (4,428 | ) | (19,385 | ) | ||||
Loan procurement amortization expense |
| (1,998 | ) | (2,057 | ) | (286 | ) | (5,958 | ) | ||||
Write-off of loan procurement cost due to early extinguishment of debt |
| (1,907 | ) | (93 | ) | (7,012 | ) | — |
| ||||
Cost incurred to acquire management company - related party |
| — |
| — |
| (22,152 | ) | — |
| ||||
Interest income |
| 1,341 |
| 2,405 |
| 37 |
| 69 |
| ||||
Other |
| 191 |
| (47 | ) | (78 | ) | — |
| ||||
Total other expense |
| (48,498 | ) | (32,162 | ) | (33,919 | ) | (25,274 | ) | ||||
INCOME (LOSS) BEFORE MINORITY INTERESTS |
| (9,324 | ) | 1,470 |
| (30,807 | ) | (2,728 | ) | ||||
MINORITY INTERESTS |
| 773 |
| (113 | ) | 898 |
| — |
| ||||
NET INCOME (LOSS) BEFORE DISCONTINUED |
|
|
|
|
|
|
|
|
| ||||
OPERATIONS |
| (8,551 | ) | 1,357 |
| (29,909 | ) | (2,728 | ) | ||||
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
| ||||
Income from operations |
| — |
| 32 |
| — |
| — |
| ||||
Gain on sale of storage facilities |
| — |
| 179 |
| — |
| — |
| ||||
Income from discontinued operations |
| — |
| 211 |
| — |
| — |
| ||||
NET INCOME (LOSS) |
| $ | (8,551 | ) | $ | 1,568 |
| $ | (29,909 | ) | $ | (2,728 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Basic and diluted earnings (loss) per share from continuing operations |
| $ | (0.15 | ) | $ | 0.04 |
| $ | (0.80 | ) |
|
| |
Basic and diluted earnings (loss) per share from discontinued operations |
| $ | — |
| $ | — |
| $ | — |
|
|
| |
Basic and diluted earnings (loss) per share |
| $ | (0.15 | ) | $ | 0.04 |
| $ | (0.80 | ) |
|
| |
|
|
|
|
|
|
|
|
|
| ||||
Weighted-average basic shares outstanding |
| 57,287 |
| 42,120 |
| 37,478 |
|
|
| ||||
Weighted-average diluted shares outstanding |
| 57,287 |
| 42,203 |
| 37,478 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Distributions declared per common share and unit |
| $ | 1.16 |
| $ | 1.13 |
| $ | 0.2009 |
|
|
|
|
| For the year ended December 31, |
| |||||||
|
| 2009 |
| 2008 |
| 2007 |
| |||
|
| (Dollars and shares in thousands, except per share data) |
| |||||||
REVENUES |
|
|
|
|
|
|
| |||
Rental income |
| $ | 200,630 |
| $ | 208,439 |
| $ | 192,275 |
|
Other property related income |
| 16,659 |
| 15,700 |
| 15,329 |
| |||
Other - related party |
| — |
| — |
| 365 |
| |||
Total revenues |
| 217,289 |
| 224,139 |
| 207,969 |
| |||
OPERATING EXPENSES |
|
|
|
|
|
|
| |||
Property operating expenses |
| 93,945 |
| 95,156 |
| 88,628 |
| |||
Property operating expenses - related party |
| — |
| — |
| 59 |
| |||
Depreciation and amortization |
| 70,832 |
| 73,751 |
| 64,672 |
| |||
Lease abandonment |
| — |
| — |
| 1,316 |
| |||
General and administrative |
| 22,569 |
| 24,964 |
| 21,966 |
| |||
General and administrative - related party |
| — |
| — |
| 337 |
| |||
Total operating expenses |
| 187,346 |
| 193,871 |
| 176,978 |
| |||
OPERATING INCOME |
| 29,943 |
| 30,268 |
| 30,991 |
| |||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
| |||
Interest: |
|
|
|
|
|
|
| |||
Interest expense on loans |
| (45,269 | ) | (52,014 | ) | (54,108 | ) | |||
Loan procurement amortization expense |
| (2,339 | ) | (1,929 | ) | (1,772 | ) | |||
Interest income |
| 681 |
| 153 |
| 401 |
| |||
Other |
| (33 | ) | 94 |
| 118 |
| |||
Total other expense |
| (46,960 | ) | (53,696 | ) | (55,361 | ) | |||
LOSS FROM CONTINUING OPERATIONS |
| (17,017 | ) | (23,428 | ) | (24,370 | ) | |||
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
| |||
Income from discontinued operations |
| 2,546 |
| 6,810 |
| 7,606 |
| |||
Net gain on disposition of discontinued operations |
| 14,139 |
| 19,720 |
| 2,517 |
| |||
Total discontinued operations |
| 16,685 |
| 26,530 |
| 10,123 |
| |||
NET INCOME (LOSS) |
| (332 | ) | 3,102 |
| (14,247 | ) | |||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONROLLING INTERESTS |
|
|
|
|
|
|
| |||
Noncontrolling interests in the Operating Partnership |
| 60 |
| (310 | ) | 1,170 |
| |||
Noncontrolling interest in subsidiaries |
| (665 | ) | — |
| — |
| |||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY |
| $ | (937 | ) | $ | 2,792 |
| $ | (13,077 | ) |
|
|
|
|
|
|
|
| |||
Basic and diluted loss per share from continuing operations attributable to common shareholders |
| $ | (0.24 | ) | $ | (0.37 | ) | $ | (0.67 | ) |
Basic and diluted earnings per share from discontinued operations attributable to common shareholders |
| $ | 0.23 |
| $ | 0.42 |
| $ | 0.45 |
|
Basic and diluted earnings (loss) per share attributable to common shareholders |
| $ | (0.01 | ) | $ | 0.05 |
| $ | (0.22 | ) |
|
|
|
|
|
|
|
| |||
Weighted-average basic and diluted shares outstanding |
| 70,988 |
| 57,621 |
| 57,497 |
| |||
|
|
|
|
|
|
|
| |||
AMOUNTS ATTRIBUTABLE TO THE COMPANY’S COMMON SHAREHOLDERS: |
|
|
|
|
|
|
| |||
Loss from continuing operations |
| $ | (16,754 | ) | $ | (21,589 | ) | $ | (38,787 | ) |
Total discontinued operations |
| 15,817 |
| 24,381 |
| 25,710 |
| |||
Net income (loss) |
| $ | (937 | ) | $ | 2,792 |
| $ | (13,077 | ) |
See accompanying notes to the consolidated and combined financial statements.
U-STORE-IT TRUST AND SUBSIDIARIES (THE “COMPANY”) AND
ACQUIPORT/AMSDELL (THE “PREDECESSOR”)
CONSOLIDATED AND COMBINED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in thousands)
|
|
|
|
|
| Additional |
|
|
| Owners’ |
|
|
| |||||
|
| Common Shares |
| Paid in |
| Accumulated |
| Equity |
|
|
| |||||||
|
| Number |
| Amount |
| Capital |
| Deficit |
| (Deficit) |
| Total |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
The Predecessor |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Balance at December 31, 2003 (as restated, see Note 2) |
| — |
| $ | — |
| $ | — |
| $ | — |
| $ | 129,893 |
| $ | 129,893 |
|
Net loss (as restated, see Note 2) |
|
|
|
|
|
|
|
|
| (2,728 | ) | (2,728 | ) | |||||
Contributions |
|
|
|
|
|
|
|
|
| 128,724 |
| 128,724 |
| |||||
Cash distributions |
|
|
|
|
|
|
|
|
| (18,297 | ) | (18,297 | ) | |||||
Issuance of note receivable from owner |
|
|
|
|
|
|
|
|
| (277,152 | ) | (277,152 | ) | |||||
Balance at October 20, 2004 (as restated, see Note 2) |
| — |
| $ | — |
| $ | — |
| $ | — |
| $ | (39,560 | ) | $ | (39,560 | ) |
The Company |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Reclassify Predecessor owners’ deficit (as restated, see Note 2) |
|
|
|
|
| (40,096 | ) |
|
| 40,096 |
| — |
| |||||
Reclassify Predecessor owners’ deficit relative to contribution of facilities at historic cost for partnership units |
|
|
|
|
| 536 |
|
|
| (536 | ) | — |
| |||||
Net proceeds from sale of common shares |
| 28,750 |
| 287 |
| 424,702 |
|
|
|
|
| 424,989 |
| |||||
Amortization of restricted shares (as restated, see Note 2) |
|
|
|
|
| 2,450 |
|
|
|
|
| 2,450 |
| |||||
Issuance of restricted shares |
| 20 |
|
|
|
|
|
|
|
|
| — |
| |||||
Issuance of shares to former owners, property contributions |
| 7,409 |
| 74 |
| (74 | ) |
|
|
|
| — |
| |||||
Issuance of shares to former owners, management company acquisition |
| 1,166 |
| 12 |
| 18,648 |
|
|
|
|
| 18,660 |
| |||||
Share compensation expense |
|
|
|
|
| 96 |
|
|
|
|
| 96 |
| |||||
Record minority interests for former owners’ continuing interests |
|
|
|
|
| (11,960 | ) |
|
|
|
| (11,960 | ) | |||||
Adjustment for minority interest in operating partnership (as restated, see Note 2) |
|
|
|
|
| (9 | ) |
|
|
|
| (9 | ) | |||||
Net loss (as restated, see Note 2) |
|
|
|
|
|
|
| (29,909 | ) |
|
| (29,909 | ) | |||||
Distributions |
|
|
|
|
|
|
| (7,532 | ) |
|
| (7,532 | ) | |||||
Balance at December 31, 2004 (as restated, see Note 2) |
| 37,345 |
| $ | 373 |
| $ | 394,293 |
| $ | (37,441 | ) | $ | — |
| $ | 357,225 |
|
Net proceeds from sale of common shares |
| 19,665 |
| 197 |
| 378,550 |
|
|
|
|
| 378,747 |
| |||||
Issuance of trustee deferred shares |
|
|
|
|
| 82 |
|
|
|
|
| 82 |
| |||||
Amortization of restricted shares (as restated, see Note 2) |
|
|
|
|
| 1,734 |
|
|
|
|
| 1,734 |
| |||||
Share compensation expense |
|
|
|
|
| 510 |
|
|
|
|
| 510 |
| |||||
Adjustment for minority interest in operating partnership (as restated, see Note 2) |
|
|
|
|
| 15,203 |
|
|
|
|
| 15,203 |
| |||||
Net income (as restated, see Note 2) |
|
|
|
|
|
|
| 1,568 |
|
|
| 1,568 |
| |||||
Accretion of operating partnership units |
|
|
|
|
|
|
| (2,976 | ) |
|
| (2,976 | ) | |||||
Distributions |
|
|
|
|
|
|
| (53,624 | ) |
|
| (53,624 | ) | |||||
Balance at December 31, 2005 (as restated, see Note 2) |
| 57,010 |
| $ | 570 |
| $ | 790,372 |
| $ | (92,473 | ) | $ | — |
| $ | 698,469 |
|
Issuance of restricted shares |
| 139 |
| 1 |
|
|
|
|
|
|
| 1 |
| |||||
Proceeds from option exercise |
| 186 |
| 2 |
| 2,985 |
|
|
|
|
| 2,987 |
| |||||
Amortization of restricted shares |
|
|
|
|
| 649 |
|
|
|
|
| 649 |
| |||||
Share compensation expense |
|
|
|
|
| 444 |
|
|
|
|
| 444 |
| |||||
Issuance of trustee deferred shares |
|
|
|
|
| 176 |
|
|
|
|
| 176 |
| |||||
Adjustment for minority interest in operating partnership |
|
|
|
|
| 6 |
|
|
|
|
| 6 |
| |||||
Net loss |
|
|
|
|
|
|
| (8,551 | ) |
|
| (8,551 | ) | |||||
Distributions |
|
|
|
|
|
|
| (66,688 | ) |
|
| (66,688 | ) | |||||
Balance at December 31, 2006 |
| 57,335 |
| $ | 573 |
| $ | 794,632 |
| $ | (167,712 | ) | $ | — |
| $ | 627,493 |
|
|
| Common Shares |
| Additional |
| Accumulated |
| Accumulated |
| Total |
| Non controlling |
|
|
| Non controlling |
| ||||||||||
|
| Number |
| Amount |
| Capital |
| Loss |
| Deficit |
| Equity |
| Subsidiaries |
| Total Equity |
| Partnership |
| ||||||||
Balance at December 31, 2006 |
| 57,335 |
| $ | 573 |
| $ | 743,924 |
| $ | — |
| $ | (167,712 | ) | $ | 576,785 |
| $ | — |
| $ | 576,785 |
| $ | 107,606 |
|
Issuance of restricted shares |
| 123 |
| 2 |
|
|
|
|
|
|
| 2 |
|
|
| 2 |
|
|
| ||||||||
Conversion from units to shares |
| 119 |
| 1 |
|
|
|
|
|
|
| 1 |
|
|
| 1 |
|
|
| ||||||||
Amortization of restricted shares |
|
|
|
|
| 972 |
|
|
|
|
| 972 |
|
|
| 972 |
|
|
| ||||||||
Share compensation expense |
|
|
|
|
| 867 |
|
|
|
|
| 867 |
|
|
| 867 |
|
|
| ||||||||
Adjustment for noncontrolling interest in operating partnership |
|
|
|
|
| 52,177 |
|
|
| 1,170 |
| 53,347 |
|
|
| 53,347 |
| (52,073 | ) | ||||||||
Net loss |
|
|
|
|
|
|
|
|
| (14,247 | ) | (14,247 | ) |
|
| (14,247 | ) | (1,170 | ) | ||||||||
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Unrealized loss on interest rate swap |
|
|
|
|
|
|
| (1,545 | ) |
|
| (1,545 | ) |
|
| (1,545 | ) |
|
| ||||||||
Unrealized loss on foreign currency translation |
|
|
|
|
|
|
| (119 | ) |
|
| (119 | ) |
|
| (119 | ) |
|
| ||||||||
Distributions |
|
|
|
|
|
|
|
|
| (60,444 | ) | (60,444 | ) |
|
| (60,444 | ) | (5,381 | ) | ||||||||
Balance at December 31, 2007 |
| 57,577 |
| $ | 576 |
| $ | 797,940 |
| $ | (1,664 | ) | $ | (241,233 | ) | $ | 555,619 |
| $ | — |
| $ | 555,619 |
| $ | 48,982 |
|
Issuance of restricted shares |
| 46 |
|
|
|
|
|
|
|
|
| — |
|
|
| — |
|
|
| ||||||||
Conversion from units to shares |
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| — |
|
|
| ||||||||
Amortization of restricted shares |
|
|
|
|
| 1,297 |
|
|
|
|
| 1,297 |
|
|
| 1,297 |
|
|
| ||||||||
Share compensation expense |
|
|
|
|
| 1,425 |
|
|
|
|
| 1,425 |
|
|
| 1,425 |
|
|
| ||||||||
Adjustment for noncontrolling interest in operating partnership |
|
|
|
|
| 367 |
|
|
| (310 | ) | 57 |
|
|
| 57 |
| (435 | ) | ||||||||
Net income |
|
|
|
|
|
|
|
|
| 3,102 |
| 3,102 |
|
|
| 3,102 |
| 310 |
| ||||||||
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Unrealized loss on interest rate swap |
|
|
|
|
|
|
| (4,608 | ) |
|
| (4,608 | ) |
|
| (4,608 | ) |
|
| ||||||||
Unrealized loss on foreign currency translation |
|
|
|
|
|
|
| (1,281 | ) |
|
| (1,281 | ) |
|
| (1,281 | ) |
|
| ||||||||
Distributions |
|
|
|
|
|
|
|
|
| (32,683 | ) | (32,683 | ) |
|
| (32,683 | ) | (2,831 | ) | ||||||||
Balance at December 31, 2008 |
| 57,623 |
| $ | 576 |
| $ | 801,029 |
| $ | (7,553 | ) | $ | (271,124 | ) | $ | 522,928 |
| $ | — |
| $ | 522,928 |
| $ | 46,026 |
|
Contributions from noncontrolling interests in subsidiaries |
|
|
|
|
|
|
|
|
|
|
| — |
| 44,739 |
| 44,739 |
| (131 | ) | ||||||||
Issuance of common shares, net |
| 34,677 |
| 347 |
| 170,501 |
|
|
|
|
| 170,848 |
|
|
| 170,848 |
|
|
| ||||||||
Issuance of restricted shares |
| 85 |
| 1 |
|
|
|
|
|
|
| 1 |
|
|
| 1 |
|
|
| ||||||||
Conversion from units to shares |
| 270 |
| 3 |
|
|
|
|
|
|
| 3 |
|
|
| 3 |
|
|
| ||||||||
Amortization of restricted shares |
|
|
|
|
| 1,631 |
|
|
|
|
| 1,631 |
|
|
| 1,631 |
|
|
| ||||||||
Share compensation expense |
|
|
|
|
| 1,765 |
|
|
|
|
| 1,765 |
|
|
| 1,765 |
|
|
| ||||||||
Adjustment for noncontrolling interest in operating partnership |
|
|
|
|
|
|
| (27 | ) |
|
| (27 | ) |
|
| (27 | ) |
|
| ||||||||
Net income (loss) |
|
|
|
|
|
|
|
|
| (937 | ) | (937 | ) | 665 |
| (272 | ) |
|
| ||||||||
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| ||||||||
Unrealized gain on interest rate swap |
|
|
|
|
|
|
| 6,153 |
|
|
| 6,153 |
|
|
| 6,153 |
|
|
| ||||||||
Unrealized gain on foreign currency translation |
|
|
|
|
|
|
| 553 |
|
|
| 553 |
|
|
| 553 |
|
|
| ||||||||
Distributions |
|
|
|
|
|
|
|
|
| (7,609 | ) | (7,609 | ) | (1,383 | ) | (8,992 | ) | (501 | ) | ||||||||
Balance at December 31, 2009 |
| 92,655 |
| $ | 927 |
| $ | 974,926 |
| $ | (874 | ) | $ | (279,670 | ) | $ | 695,309 |
| $ | 44,021 |
| $ | 739,330 |
| $ | 45,394 |
|
See accompanying notes to the consolidated and combined financial statements.
U-STORE-IT TRUST AND SUBSIDIARIES (THE “COMPANY”) AND
ACQUIPORT/AMSDELL (THE “PREDECESSOR”)
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(in thousands)
|
| THE COMPANY |
| THE PREDECESSOR |
| ||||||||
|
|
|
|
|
| For the Period |
| For the Period |
| ||||
|
|
|
| Year Ended |
| October 21, 2004 to |
| January 1, 2004 to |
| ||||
|
| Year Ended |
| December 31, |
| December 31, |
| October 20, |
| ||||
|
| December 31, |
| 2005 |
| 2004 |
| 2004 |
| ||||
|
| 2006 |
| (as restated, see Note 2) |
| (as restated, see Note 2) |
| (as restated, see Note 2) |
| ||||
Operating Activities |
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
| $ | (8,551 | ) | $ | 1,568 |
| $ | (29,909 | ) | $ | (2,728 | ) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization |
| 66,727 |
| 42,174 |
| 6,086 |
| 22,486 |
| ||||
Asset write-offs |
| 305 |
| — |
| — |
| — |
| ||||
Equity compensation expense |
| 1,272 |
| 2,244 |
| 2,546 |
| — |
| ||||
Accretion of fair market value of debt |
| (692 | ) | (378 | ) | — |
| — |
| ||||
Early extinguishment of debt |
| 1,907 |
| 93 |
| 7,012 |
| — |
| ||||
Minority interests |
| (773 | ) | 113 |
| (898 | ) | — |
| ||||
Costs incurred to acquire management company |
| — |
| — |
| 22,152 |
| — |
| ||||
Gain on sale of assets |
| — |
| (179 | ) | — |
| — |
| ||||
Changes in other operating accounts: |
|
|
|
|
|
|
|
|
| ||||
Other assets |
| (350 | ) | (2,674 | ) | 2,854 |
| 27 |
| ||||
Accounts payable and accrued expenses |
| 5,733 |
| 3,187 |
| (1,846 | ) | 5,803 |
| ||||
Other liabilities |
| (1,011 | ) | (42 | ) | 1,418 |
| (65 | ) | ||||
Net cash provided by operating activities |
| $ | 64,567 |
| $ | 46,106 |
| $ | 9,415 |
| $ | 25,523 |
|
|
|
|
|
|
|
|
|
|
| ||||
Investing Activities |
|
|
|
|
|
|
|
|
| ||||
Acquisitions, additions and improvements to storage facilities |
| (312,352 | ) | (381,083 | ) | (224,525 | ) | (2,865 | ) | ||||
Acquisitions, additions and improvements to storage facilities - related party |
| (37,414 | ) | (10,889 | ) | (451 | ) | — |
| ||||
Acquisition of management company - related party |
| — |
| — |
| (3,492 | ) | — |
| ||||
Proceeds from sales of assets |
| 42 |
| 6,203 |
| — |
| — |
| ||||
Proceeds from sales of marketable securities |
| 114,170 |
| 29,825 |
| — |
| — |
| ||||
Investment in marketable securities |
| (19,000 | ) | (124,995 | ) | — |
| — |
| ||||
Insurance proceeds for replacement of assets |
| 1,712 |
| 500 |
| — |
| 583 |
| ||||
Increase (decrease) in restricted cash |
| 4,795 |
| (8,624 | ) | (3,693 | ) | (2,832 | ) | ||||
Net cash used in investing activities |
| $ | (248,047 | ) | $ | (489,063 | ) | $ | (232,161 | ) | $ | (5,114 | ) |
Financing Activities |
|
|
|
|
|
|
|
|
| ||||
Net proceeds from sale of common shares |
| — |
| 378,747 |
| 424,989 |
| — |
| ||||
Proceeds from: |
|
|
|
|
|
|
|
|
| ||||
Revolving credit facility |
| 331,000 |
| — |
| — |
| — |
| ||||
Unsecured term loan |
| 200,000 |
| — |
| — |
| — |
| ||||
Mortgage loans and notes payable |
| — |
| 409,257 |
| 270,000 |
| 424,500 |
| ||||
Notes payable - related parties |
| — |
| — |
| — |
| 3,961 |
| ||||
Short-term financing |
| 80,000 |
| — |
| — |
| — |
| ||||
Principal payments on: |
|
|
|
|
|
|
|
|
| ||||
Revolving credit facility |
| (240,500 | ) | — |
| — |
| — |
| ||||
Mortgage loans and notes payable |
| (114,111 | ) | (219,875 | ) | (437,849 | ) | (147,725 | ) | ||||
Notes payable - related parties |
| — |
| — |
| (1,600 | ) | (2,361 | ) | ||||
Short term financing |
| (80,000 | ) | — |
| — |
| — |
| ||||
Capital lease obligations |
| (39 | ) | (100 | ) | (21 | ) | (197 | ) | ||||
Cash contributions from owners |
| — |
| — |
| — |
| 108 |
| ||||
Loan made to owners |
| — |
| — |
| — |
| (277,152 | ) | ||||
Cash distributions to owners |
| — |
| — |
| — |
| (18,297 | ) | ||||
Distributions paid to shareholders |
| (66,623 | ) | (44,532 | ) | — |
| — |
| ||||
Distributions paid to minority partners |
| (6,017 | ) | (2,349 | ) | — |
| — |
| ||||
Pre-payment penalty on debt extinguishment |
| — |
| — |
| (887 | ) | — |
| ||||
Loan procurement costs |
| (2,398 | ) | (4,691 | ) | (8,554 | ) | (8,682 | ) | ||||
Proceeds from exercise of stock options |
| 2,985 |
| — |
| — |
| — |
| ||||
Net cash from (used in) financing activities |
| $ | 104,297 |
| $ | 516,457 |
| $ | 246,078 |
| $ | (25,845 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Increase (decrease) in cash and cash equivalents |
| (79,183 | ) | 73,500 |
| 23,332 |
| (5,436 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents at beginning of period |
| 98,899 |
| 25,399 |
| 2,067 |
| 7,503 |
| ||||
Cash and cash equivalents at end of period |
| $ | 19,716 |
| $ | 98,899 |
| $ | 25,399 |
| $ | 2,067 |
|
|
| Twelve Months Ended December 31, |
| |||||||
|
| 2009 |
| 2008 |
| 2007 |
| |||
Operating Activities |
|
|
|
|
|
|
| |||
Net income (loss) |
| $ | (332 | ) | $ | 3,102 |
| $ | (14,247 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
| |||
Depreciation and amortization |
| 75,908 |
| 80,132 |
| 72,218 |
| |||
Lease abandonment charge |
| — |
| — |
| 1,316 |
| |||
Gain on disposition of discontinued operations |
| (14,139 | ) | (19,720 | ) | (2,311 | ) | |||
Equity compensation expense |
| 3,396 |
| 2,722 |
| 1,840 |
| |||
Accretion of fair market value adjustment of debt |
| (463 | ) | (446 | ) | (367 | ) | |||
Changes in other operating accounts: |
|
|
|
|
|
|
| |||
Other assets |
| 388 |
| 1,425 |
| (2,756 | ) | |||
Accounts payable and accrued expenses |
| (1,797 | ) | (7 | ) | 6,660 |
| |||
Other liabilities |
| (747 | ) | (196 | ) | 346 |
| |||
Net cash provided by operating activities |
| $ | 62,214 |
| $ | 67,012 |
| $ | 62,699 |
|
|
|
|
|
|
|
|
| |||
Investing Activities |
|
|
|
|
|
|
| |||
Acquisitions, additions and improvements to storage facilities |
| (17,882 | ) | (30,738 | ) | (48,014 | ) | |||
Acquisitions, additions and improvements to storage facilities- related party |
| — |
| — |
| (121,630 | ) | |||
Insurance settlements |
| — |
| 1,447 |
| — |
| |||
Proceeds from sales of properties, net |
| 68,257 |
| 56,867 |
| 17,935 |
| |||
Proceeds from sales to noncontrolling interests |
| 48,641 |
| — |
| — |
| |||
Increase in restricted cash |
| (164 | ) | (399 | ) | (1,692 | ) | |||
Net cash provided by (used in) investing activities |
| $ | 98,852 |
| $ | 27,177 |
| $ | (153,401 | ) |
|
|
|
|
|
|
|
| |||
Financing Activities |
|
|
|
|
|
|
| |||
Proceeds from: |
|
|
|
|
|
|
| |||
Revolving credit facility |
| 9,500 |
| 57,300 |
| 156,500 |
| |||
Secured term loans |
| 200,000 |
| 9,975 |
| 47,444 |
| |||
Mortgage loans and notes payable |
| 116,615 |
| — |
| 4,651 |
| |||
Principal payments on: |
|
|
|
|
|
|
| |||
Revolving credit facility |
| (181,500 | ) | (104,300 | ) | (28,000 | ) | |||
Unsecured term loans |
| (200,000 | ) | — |
| — |
| |||
Secured term loans |
| (57,419 | ) | — |
| — |
| |||
Mortgage loans and notes payable |
| (95,211 | ) | (12,526 | ) | (32,157 | ) | |||
Proceeds from issuance of equity, net |
| 170,852 |
| — |
| — |
| |||
Distributions paid to shareholders |
| (6,736 | ) | (41,621 | ) | (66,816 | ) | |||
Distributions paid to noncontrolling interests in Operating Partnership |
| (508 | ) | (3,656 | ) | (5,975 | ) | |||
Distributions paid to noncontrolling interest in subsidiaries |
| (1,383 | ) | — |
| — |
| |||
Loan procurement costs |
| (16,252 | ) | (134 | ) | (144 | ) | |||
Net cash (used in) provided by financing activities |
| $ | (62,042 | ) | $ | (94,962 | ) | $ | 75,503 |
|
|
|
|
|
|
|
|
| |||
Increase (decrease) in cash and cash equivalents |
| 99,024 |
| (773 | ) | (15,199 | ) | |||
|
|
|
|
|
|
|
| |||
Cash and cash equivalents at beginning of year |
| 3,744 |
| 4,517 |
| 19,716 |
| |||
Cash and cash equivalents at end of year |
| $ | 102,768 |
| $ | 3,744 |
| $ | 4,517 |
|
|
|
|
|
|
|
|
| |||
Supplemental Cash Flow and Noncash Information |
|
|
|
|
|
|
| |||
Cash paid for interest, net of interest capitalized |
| $ | 43,764 |
| $ | 52,291 |
| $ | 53,952 |
|
Supplemental disclosure of noncash activities: |
|
|
|
|
|
|
| |||
Additions to storage facilities |
| $ | — |
| $ | 1,023 |
| $ | — |
|
Disposition of facilities: |
|
|
|
|
|
|
| |||
Notes receivable originated upon disposition of property |
| $ | 17,600 |
| $ | 2,612 |
| $ | — |
|
Derivative valuation adjustment |
| $ | 6,153 |
| $ | (4,608 | ) | $ | (1,545 | ) |
Foreign currency translation adjustment |
| $ | 553 |
| $ | (1,281 | ) | $ | (119 | ) |
Gain deferral on sales to noncontrolling interests |
| $ | 3,992 |
| $ | — |
| $ | — |
|
See accompanying notes to the consolidated and combined financial statements.
U-STORE-IT TRUST AND SUBSIDIARIES (THE “COMPANY”) AND
ACQUIPORT/AMSDELL (THE “PREDECESSOR”)
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS — (Continued)
|
| THE COMPANY |
| THE PREDECESSOR |
| ||||||||
|
|
|
|
|
| For the Period |
| For the Period |
| ||||
|
|
|
| Year Ended |
| October 21, 2004 to |
| January 1, 2004 to |
| ||||
|
| Year Ended |
| December 31, |
| December 31, |
| October 20, |
| ||||
|
| December 31, |
| 2005 |
| 2004 |
| 2004 |
| ||||
|
| 2006 |
| (as restated, see Note 2) |
| (as restated, see Note 2) |
| (as restated, see Note 2) |
| ||||
Supplemental Cash Flow Information |
|
|
|
|
|
|
|
|
| ||||
Cash paid for interest, net of interest capitalized |
| $ | 45,461 |
| $ | 33,893 |
| $ | 9,032 |
| $ | 15,080 |
|
Cash paid for taxes |
| — |
| 315 |
| 25 |
| — |
| ||||
Supplemental disclosure of noncash activities: |
|
|
|
|
|
|
|
|
| ||||
Contribution of facilities from prior owners for operating partnership units: |
|
|
|
|
|
|
|
|
| ||||
Investment in real estate |
| — |
| — |
| 10,762 |
| — |
| ||||
Mortgage loans |
| — |
| — |
| (10,365 | ) | — |
| ||||
Other, net |
| — |
| — |
| 139 |
| — |
| ||||
Net assets acquired |
| $ | — |
| $ | — |
| $ | 536 |
| $ | — |
|
Acquisition of management company from prior owners: |
|
|
|
|
|
|
|
|
| ||||
Assets acquired |
| — |
| — |
| 659 |
| — |
| ||||
Liabilities assumed |
| — |
| — |
| (536 | ) | — |
| ||||
Net assets acquired |
| $ | — |
| $ | — |
| $ | 123 |
| $ | — |
|
Acquisitions of facilities: |
|
|
|
|
|
|
|
|
| ||||
Issuance of OP units |
| — |
| (68,594 | ) | — |
| — |
| ||||
Mortgage loans |
| (34,451 | ) | (99,782 | ) | — |
| — |
| ||||
Other, net |
| (2,032 | ) | (1,660 | ) | (4,526 | ) | — |
| ||||
Acquisition of partnership interests: |
|
|
|
|
|
|
|
|
| ||||
Investment in real estate |
| — |
| — |
| — |
| 128,672 |
| ||||
Contribution related to step-up in basis |
| — |
| — |
| — |
| (128,672 | ) | ||||
Reclassification of owners’ deficit to additional paid in capital |
| — |
| — |
| 37,961 |
| — |
| ||||
Accrual for transfer of deferred financing fee assumed at merger date |
| — |
| — |
| (2,547 | ) | 2,547 |
| ||||
Record minority interest for limited partnership units in the operating partnership by reclassifying from additional paid in capital |
| — |
| — |
| 11,960 |
| — |
| ||||
Items capitalized for funds yet to be disbursed |
| — |
| — |
| (427 | ) | — |
| ||||
Accrual for offering costs (reclassified to shareholders’ equity) |
| — |
| — |
| (3,668 | ) | 3,668 |
|
See accompanying notes to the consolidated and combined financial statements.
F-11
U-STORE-IT TRUST AND SUBSIDIARIES (THE “COMPANY”) AND
ACQUIPORT/AMSDELL (THE “PREDECESSOR”)
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
1. ORGANIZATION AND NATURE OF OPERATIONS
U-Store-It Trust, a Maryland real estate investment trust (collectively with its subsidiaries, “we”, “us” or the “Company”), is a self-administered and self-managed real estate investment trust, or REIT, active in acquiring, developing and operating self-storage properties for business and personal use under month-to-month leases. As of December 31, 2006, the Company owned 399The Company’s self-storage facilities (collectively, the “Properties”) containing an aggregate of approximately 25.4 million rentable square feet. The Properties are located in 2726 states throughout the United States. All references to building square footage, occupancy percentage,States, and in the numberDistrict of buildingsColumbia and are unaudited.
managed under one reportable operating segment: we own, operate, develop, and acquire self-storage facilities. The Company owns substantially all of its assets through U-Store-It, L.P., a Delaware limited partnership (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership and, as of December 31, 2006,2009, owned a 91.7%95.1% interest in the Operating Partnership. The Company manages its assets through YSI Management, LLC (the “Management Company”), a wholly owned subsidiary of the operating partnership. In addition to managing the Properties, the Management Company managed approximately 1.1 million rentable square feet related to facilities owned by related parties as of December 31, 2006.Operating Partnership. The Company owns 100% of U-Store-It Mini Warehouse Co. (the “TRS”), in addition to three other subsidiaries, each of which it has elected to treatbe treated as a taxable REIT subsidiary. In general, a taxable REIT subsidiary may perform non-customary services for tenants, hold assets that the Company cannot hold directly and generally may engage in any real estate or non-real estate related business.
The Company was formed in July 2004 to succeed the self-storage operations owned directly and indirectly by Robert J. Amsdell, Barry L. Amsdell, Todd C. Amsdell and their affiliated entities and related family trusts (the “Amsdell Entities”). The Company commenced operations on October 21, 2004, after completing the mergers of Amsdell Partners, Inc. and High Tide LLC with and into the Company. The Company subsequently completed an initial public offering (“IPO”) of its common shares on October 27, 2004 concurrently with the consummation of various formation transactions. The IPO consisted of the sale of an aggregate of 28,750,000 common shares (including 3,750,000 shares pursuant to the exercise of the underwriters’ over-allotment option) at an offering price of $16.00 per share, generating gross proceeds of $460.0 million. The IPO resulted in net proceeds to the Company, after deducting underwriting discount and commissions, financial advisory fees and expenses of the IPO, of approximately $425.0 million.
The financial statements covered in this report represent the results of operations and financial condition of Acquiport/Amsdell (the “Predecessor”) prior to the IPO and the formation transactions (“Formation Transactions”) and of the Company after October 21, 2004. The Predecessor was not a legal entity but rather a combination of certain real estate entities and operations as described below. Concurrent with the consummation of the IPO, the Company and the Operating Partnership, together with the partners and members of affiliated partnerships and limited liability companies of the Predecessor and other parties which held direct or indirect ownership interests in the properties (the “Participants”), completed the Formation Transactions. The Formation Transactions were designed to (i) continue the operations of the Operating Partnership; (ii) acquire the management rights with respect to the Predecessor’s existing facilities and three facilities contributed to the Operating Partnership by entities owned by Robert J. Amsdell and Barry L. Amsdell; (iii) enable the Company to raise necessary capital for the operating partnership to repay a portion of the existing term loan provided by an affiliate of Lehman Brothers and other indebtedness related to the three facilities acquired by the Operating Partnership from entities owned by Robert J. Amsdell and Barry L. Amsdell and on four of the other existing facilities; (iv) enable the Company to qualify as a REIT for federal income tax purposes commencing the day prior to the closing of the IPO; and (v) permit such entities owned by Robert J. Amsdell and Barry L. Amsdell to defer the recognition of gain related to the three facilities that were contributed to the Operating Partnership. These Formation Transactions are described in detail in the Company’s Registration Statement on Form S-11 filed with the Securities and Exchange Commission (the “SEC”) in connection with the IPO.
In October 2005, the Company completed a follow-on public offering, pursuant to which it sold an aggregate of 19,665,000 common shares (including 2,565,000 shares pursuant to the exercise of the underwriters’ option) at an offering price of $20.35 per share, for gross proceeds of $400.2 million. The offering resulted in net proceeds to the Company, after deducting underwriting discount and commissions and expenses of the offering, of approximately $378.7 million.
2. RESTATEMENTS OF PREVIOUSLY ISSUED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
Subsequent to the issuance of the Company’s 2005 financial statements, the Audit Committee of the Board of Trustees of the Company, upon recommendation from management, concluded that the previously issued financial statements contained errors related to the Company’s classification of auction rate securities held at December 31, 2005 as cash and cash equivalents. As a result, the Company is restating its previously issued financial statements.
In the quarter ended September 30, 2006 the Company early adopted Staff Accounting Bulletin No. 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”). As a result of the discovery of the error descr ibed above, the Company is restating its previously issued financial statements to reflect, in the appropriate periods, the correction of the errors originally corrected via an adjustment of the Company’s January 1, 2006 accumulated deficit in accordance with SAB 108.
The following is a description of the nature of the errors being corrected in the restatement:
Cash and Cash Equivalents
The Company adjusted its December 31, 2005 Consolidated Balance Sheet to change the classification of outstanding checks from “Accounts payable and accrued expenses” to “Cash and cash equivalents.” This adjustment had no effect on the Consolidated and Combined Statements of Operations or Shareholders Equity.
Auction Rate and Other Marketable Securities
The Company adjusted its December 31, 2005 Consolidated Balance Sheet to change the classification of approximately $89.8 million of auction rate and approximately $5.4 million of other variable rate demand note securities from “Cash and cash equivalents” to “Marketable Securities.” Auction rate and variable rate demand note securities are securities that have stated maturities beyond three months, but are priced and traded as short-term investments due to the liquidity provided through an auction mechanism. The definition of a cash equivalent does not include these securities. This adjustment had no effect on the Consolidated and Combined Statements of Operations or Shareholders Equity.
Restricted Cash
The Company adjusted its December 31, 2005 Consolidated Balance Sheet to change the classification of certain deposits related to facilities encumbered with mortgage loans from “Cash and cash equivalents” to “Restricted Cash.” This adjustment had no effect on the Consolidated and Combined Statements of Operations or Shareholders Equity.
Loan Procurement Costs
The Company adjusted its December 31, 2005 Consolidated Balance Sheet, its Consolidated Statement of Operations for the period October 21, 2004 to December 31, 2004 and for the year ended December 31, 2005, and the Predecessor’s Consolidated Statement of Operations for the period January 1, 2004 to October 20, 2004 to reflect a change in amortization period of certain loan procurement costs, associated with debt instruments with increasing interest rates. The loan procurement costs were being amortized over a period inconsistent with the determination of the debt instruments’ interest cost.
Other Assets / Rental Income
The Company adjusted its December 31, 2005 Consolidated Balance Sheet, its Consolidated Statement of Operations for the period October 21, 2004 to December 31, 2004 and for the year ended December 31, 2005, and the Predecessor’s Consolidated Statement of Operations for the period January 1, 2004 to October 20, 2004 for adjustments to certain leasing transactions. The misstatement related to the period in which the revenue related to certain tenants had been recognized.
Accounts Payable and Accrued Expense
The Company adjusted its December 31, 2005 Consolidated Balance Sheet, its Consolidated Statement of Operations for the period October 21, 2004 to December 31, 2004 and for the year ended December 31, 2005, and the Predecessor’s Consolidated Statement of Operations for the period January 1, 2004 to October 20, 2004 to accrue for utility costs at period end and workers compensation expense that had been understated as a result of erroneous information used to previously calculate the expense.
Distributions Payable and Additional Paid-In Capital
The Company adjusted its December 31, 2005 Consolidated Balance Sheet and Consolidated and Combined Statement of Shareholders’ Equity to reflect the accrual of distributions payable to its limited partners at period end. This adjustment had no effect on the Consolidated and Combined Statements of Operations.
Unearned share grant compensation
The Company adjusted its December 31, 2005 Consolidated Balance Sheet and its 2005 Consolidated and Combined Statement of Shareholders’ Equity to change the classification of Unearned Share Grant Compensation to Additional Paid-in Capital. This adjustment had no effect on the Consolidated and Combined Statements of Operations.
Related Party Revenue
The Company adjusted its 2004 and 2005 Consolidated Statements of Operations to change the classification of management fee revenue earned through the Company’s management of certain facilities owned by related parties from “Rental income” to “Other-Related party”.
In addition to the effects of the adjustments described above, the Company adjusted its 2005 and 2004 Consolidated and Combined Statements of Cash Flows to correct the presentation of the change in accounts payable related to real estate investment as an Investing Activity where it had previously been reported as an Operating Activity; and the gross presentation of certain 2005 borrowings and repayments on debt facilities.
This table recaps the adjustments described above:
|
| Previously |
| Adjustment |
| As |
| |||
The Predecessor |
| (in thousands) |
| |||||||
For the period January 1, 2004 to October 20, 2004 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Statement of Operations |
|
|
|
|
|
|
| |||
Rental income |
| $ | 65,631 |
| $ | 91 |
| $ | 65,722 |
|
Total revenues |
| $ | 68,842 |
| $ | 91 |
| $ | 68,933 |
|
Property operating expenses |
| $ | 26,031 |
| $ | 139 |
| $ | 26,170 |
|
Total operating expenses |
| $ | 46,248 |
| $ | 139 |
| $ | 46,387 |
|
Operating income |
| $ | 22,594 |
| $ | (48 | ) | $ | 22,546 |
|
Loan procurement amortization expense |
| $ | (5,727 | ) | $ | (231 | ) | $ | (5,958 | ) |
Total other expense |
| $ | (25,043 | ) | $ | (231 | ) | $ | (25,274 | ) |
Net loss |
| $ | (2,449 | ) | $ | (279 | ) | $ | (2,728 | ) |
|
|
|
|
|
|
|
| |||
Statement of Cash Flows |
|
|
|
|
|
|
| |||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
| |||
Net loss |
| $ | (2,449 | ) | $ | (279 | ) | $ | (2,728 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
| |||
Depreciation and amortization |
| $ | 22,255 |
| $ | 231 |
| $ | 22,486 |
|
Changes in other operating accounts |
|
|
|
|
|
|
| |||
Other assets |
| $ | 118 |
| $ | (91 | ) | $ | 27 |
|
Accounts payable and accrued expenses |
| $ | 5,664 |
| $ | 139 |
| $ | 5,803 |
|
|
| Previously |
| Adjustment |
| As |
| |||
The Company |
| (in thousands) |
| |||||||
For the period October 21, 2004 to December 31, 2004 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Statement of Operations |
|
|
|
|
|
|
| |||
Rental income |
| $ | 21,314 |
| $ | 96 |
| $ | 21,410 |
|
Other - related party |
| $ | — |
| $ | 71 |
| $ | 71 |
|
Total revenues |
| $ | 22,766 |
| $ | 167 |
| $ | 22,933 |
|
Property operating expenses |
| $ | 9,635 |
| $ | 132 |
| $ | 9,767 |
|
Total operating expenses |
| $ | 19,689 |
| $ | 132 |
| $ | 19,821 |
|
Operating income |
| $ | 3,077 |
| $ | 35 |
| $ | 3,112 |
|
Loan procurement amortization expense |
| $ | (240 | ) | $ | (46 | ) | $ | (286 | ) |
Total other expense |
| $ | (33,873 | ) | $ | (46 | ) | $ | (33,919 | ) |
Loss before minority interest |
| $ | (30,796 | ) | $ | (11 | ) | $ | (30,807 | ) |
Net loss |
| $ | (29,898 | ) | $ | (11 | ) | $ | (29,909 | ) |
|
|
|
|
|
|
|
| |||
Statement of Cash Flows |
|
|
|
|
|
|
| |||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
| |||
Net loss |
| $ | (29,898 | ) | $ | (11 | ) | $ | (29,909 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
| |||
Depreciation and amortization |
| $ | 6,040 |
| $ | 46 |
| $ | 6,086 |
|
Changes in other operating accounts |
|
|
|
|
|
|
| |||
Other assets |
| $ | 3,021 |
| $ | (167 | ) | $ | 2,854 |
|
Accounts payable and accrued expenses |
| $ | (1,978 | ) | $ | 132 |
| $ | (1,846 | ) |
Decrease (increase) in restricted cash |
| $ | (607 | ) | $ | (3,086 | ) | $ | (3,693 | ) |
Net cash used in investing activities |
| $ | (229,075 | ) | $ | (3,086 | ) | $ | (232,161 | ) |
Increase (decrease) in cash and cash equivalents |
| $ | 26,418 |
| $ | (3,086 | ) | $ | 23,332 |
|
Cash and cash equivalents at end of period |
| $ | 28,485 |
| $ | (3,086 | ) | $ | 25,399 |
|
|
| Previously |
| Adjustment |
| As |
| |||
The Company |
| (in thousands, except per share amounts) |
| |||||||
As of and for the year ended December 31, 2005 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Balance Sheet |
|
|
|
|
|
|
| |||
Cash and cash equivalents |
| $ | 201,098 |
| $ | (102,199 | ) | $ | 98,899 |
|
Restricted cash |
| $ | 14,672 |
| $ | 4,249 |
| $ | 18,921 |
|
Loan procurement costs — net of amortization |
| $ | 10,437 |
| $ | (1,355 | ) | $ | 9,082 |
|
Marketable securities |
| $ | — |
| $ | 95,170 |
| $ | 95,170 |
|
Other assets |
| $ | 8,631 |
| $ | (1,032 | ) | $ | 7,599 |
|
Total Assets |
| $ | 1,481,488 |
| $ | (5,167 | ) | $ | 1,476,321 |
|
Accounts payable and accrued expenses |
| $ | 18,854 |
| $ | (1,726 | ) | $ | 17,128 |
|
Distributions payable |
| $ | 16,624 |
| $ | 1,507 |
| $ | 18,131 |
|
Total Liabilities |
| $ | 714,376 |
| $ | (219 | ) | $ | 714,157 |
|
Minority interests |
| $ | 64,108 |
| $ | (413 | ) | $ | 63,695 |
|
Additional paid-in capital |
| $ | 795,244 |
| $ | (4,872 | ) | $ | 790,372 |
|
Accumulated deficit |
| $ | (91,253 | ) | $ | (1,220 | ) | $ | (92,473 | ) |
Unearned share grant compensation |
| $ | (1,557 | ) | $ | 1,557 |
| $ | — |
|
Total shareholders’ equity |
| $ | 703,004 |
| $ | (4,535 | ) | $ | 698,469 |
|
Total Liabilities and Shareholders’ Equity |
| $ | 1,481,488 |
| $ | (5,167 | ) | $ | 1,476,321 |
|
|
|
|
|
|
|
|
| |||
Statement of Operations |
|
|
|
|
|
|
| |||
Rental income |
| $ | 138,120 |
| $ | (918 | ) | $ | 137,202 |
|
Other - related party |
| $ | — |
| $ | 405 |
| $ | 405 |
|
Total revenues |
| $ | 148,121 |
| $ | (513 | ) | $ | 147,608 |
|
Property operating expenses |
| $ | 54,952 |
| $ | 510 |
| $ | 55,462 |
|
Total operating expenses |
| $ | 113,466 |
| $ | 510 |
| $ | 113,976 |
|
Operating income |
| $ | 34,655 |
| $ | (1,023 | ) | $ | 33,632 |
|
Loan procurement amortization expense |
| $ | (1,785 | ) | $ | (272 | ) | $ | (2,057 | ) |
Total other expense |
| $ | (31,890 | ) | $ | (272 | ) | $ | (32,162 | ) |
Income before minority interests |
| $ | 2,765 |
| $ | (1,295 | ) | $ | 1,470 |
|
Minority interests |
| $ | (199 | ) | $ | 86 |
| $ | (113 | ) |
Net income before discontinued operations |
| $ | 2,566 |
| $ | (1,209 | ) | $ | 1,357 |
|
Net income |
| $ | 2,777 |
| $ | (1,209 | ) | $ | 1,568 |
|
Basic and diluted earnings per share from continuing operations |
| $ | 0.07 |
| $ | (0.03 | ) | $ | 0.04 |
|
Basic and diluted earnings per share |
| $ | 0.07 |
| $ | (0.03 | ) | $ | 0.04 |
|
|
|
|
|
|
|
|
| |||
Statement of Cash Flows |
|
|
|
|
|
|
| |||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
| |||
Net income |
| $ | 2,777 |
| $ | (1,209 | ) | $ | 1,568 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
| |||
Depreciation and amortization |
| $ | 41,902 |
| $ | 272 |
| $ | 42,174 |
|
Minority interests |
| $ | 199 |
| $ | (86 | ) | $ | 113 |
|
Changes in other operating accounts |
|
|
|
|
|
|
| |||
Other assets |
| $ | (3,187 | ) | $ | 513 |
| $ | (2,674 | ) |
Accounts payable and accrued expenses |
| $ | 5,421 |
| $ | (2,234 | ) | $ | 3,187 |
|
Net cash provided by operating activities |
| $ | 48,850 |
| $ | (2,744 | ) | $ | 46,106 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
| |||
Acquisitions, additions and improvements to storage facilities |
| $ | (383,760 | ) | $ | 2,677 |
| $ | (381,083 | ) |
Proceeds from sale of marketable securities |
| $ | — |
| $ | 29,825 |
| $ | 29,825 |
|
Investment in marketable securities |
| $ | — |
| $ | (124,995 | ) | $ | (124,995 | ) |
Increase in restricted cash |
| $ | (4,748 | ) | $ | (3,876 | ) | $ | (8,624 | ) |
Net cash used in investing activites |
| $ | (392,694 | ) | $ | (96,369 | ) | $ | (489,063 | ) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
| |||
Proceeds from mortgage loans and notes payable |
| $ | 232,457 |
| $ | 176,800 |
| $ | 409,257 |
|
Principal payments on mortgage loans and notes payable |
| $ | (43,075 | ) | $ | (176,800 | ) | $ | (219,875 | ) |
Increase in cash and cash equivalents |
| $ | 172,613 |
| $ | (99,113 | ) | $ | 73,500 |
|
Cash and cash equivalents at beginning of period |
| $ | 28,485 |
| $ | (3,086 | ) | $ | 25,399 |
|
Cash and cash equivalents at end of period |
| $ | 201,098 |
| $ | (102,199 | ) | $ | 98,899 |
|
|
| Previously |
| Adjustment |
| As |
| |||
|
| (in thousands) |
| |||||||
Restatements related to the Company |
|
|
|
|
|
|
| |||
Consolidated and Combined Statements of Shareholders’ Equity and Owners’ Equity (Deficit) |
|
|
|
|
|
|
| |||
Additional paid in capital |
|
|
|
|
|
|
| |||
The Company |
|
|
|
|
|
|
| |||
Reclassify Predecessor owners’ deficit |
| $ | (37,961 | ) | $ | (2,135 | ) | $ | (40,096 | ) |
Grant of restricted share units |
| $ | 2,675 |
| $ | (2,675 | ) | $ | — |
|
Amortization of restricted shares |
| $ | — |
| $ | 2,450 |
| $ | 2,450 |
|
Adjustment for minority interest in operating partnership |
| $ | — |
| $ | (9 | ) | $ | (9 | ) |
Balance at December 31, 2004 |
| $ | 396,662 |
| $ | (2,369 | ) | $ | 394,293 |
|
Grant of restricted share units |
| $ | 3,066 |
| $ | (3,066 | ) | $ | — |
|
Amortization of restricted shares |
| $ | — |
| $ | 1,734 |
| $ | 1,734 |
|
Adjustment for minority interest in operating partnership |
| $ | 16,374 |
| $ | (1,171 | ) | $ | 15,203 |
|
Balance at December 31, 2005 |
| $ | 795,244 |
| $ | (4,872 | ) | $ | 790,372 |
|
|
|
|
|
|
|
|
| |||
Unearned grant shares compensation |
|
|
|
|
|
|
| |||
The Company |
|
|
|
|
|
|
| |||
Grant of restricted share units |
| $ | (2,675 | ) | $ | 2,675 |
| $ | — |
|
Amortization of restricted share units |
| $ | 2,450 |
| $ | (2,450 | ) | $ | — |
|
Balance at December 31, 2004 |
| $ | (225 | ) | $ | 225 |
| $ | — |
|
Grant of restricted share units |
| $ | (3,066 | ) | $ | 3,066 |
| $ | — |
|
Amortization of restricted share units |
| $ | 1,734 |
| $ | (1,734 | ) | $ | — |
|
Balance at December 31, 2005 |
| $ | (1,557 | ) | $ | 1,557 |
| $ | — |
|
|
|
|
|
|
|
|
| |||
Accumulated Deficit |
|
|
|
|
|
|
| |||
The Company |
|
|
|
|
|
|
| |||
Net loss |
| $ | (29,898 | ) | $ | (11 | ) | $ | (29,909 | ) |
Balance at December 31, 2004 |
| $ | (37,430 | ) | $ | (11 | ) | $ | (37,441 | ) |
Net income |
| $ | 2,777 |
| $ | (1,209 | ) | $ | 1,568 |
|
Balance at December 31, 2005 |
| $ | (91,253 | ) | $ | (1,220 | ) | $ | (92,473 | ) |
|
|
|
|
|
|
|
| |||
Owner’s equity (deficit) |
|
|
|
|
|
|
| |||
The Predecessor |
|
|
|
|
|
|
| |||
Balance at January 1, 2004 |
| $ | 131,749 |
| $ | (1,856 | ) | $ | 129,893 |
|
Net loss |
| $ | (2,449 | ) | $ | (279 | ) | $ | (2,728 | ) |
Balance at October 20, 2004 |
| $ | (37,425 | ) | $ | (2,135 | ) | $ | (39,560 | ) |
The Company |
|
|
|
|
|
|
| |||
Reclassify Predecessor owners’ deficit |
| $ | 37,961 |
| $ | 2,135 |
| $ | 40,096 |
|
|
|
|
|
|
|
|
| |||
Total |
|
|
|
|
|
|
| |||
The Predecessor |
|
|
|
|
|
|
| |||
Balance at January 1, 2004 |
| $ | 131,749 |
| $ | (1,856 | ) | $ | 129,893 |
|
Net loss |
| $ | (2,449 | ) | $ | (279 | ) | $ | (2,728 | ) |
Balance at October 20, 2004 |
| $ | (37,425 | ) | $ | (2,135 | ) | $ | (39,560 | ) |
The Company |
|
|
|
|
|
|
| |||
Adjustment for minority interest in operating partnership |
| $ | — |
| $ | (9 | ) | $ | (9 | ) |
Net loss |
| $ | (29,898 | ) | $ | (11 | ) | $ | (29,909 | ) |
Balance at December 31, 2004 |
| $ | 359,380 |
| $ | (2,155 | ) | $ | 357,225 |
|
Adjustment for minority interest in operating partnership |
| $ | 16,374 |
| $ | (1,171 | ) | $ | 15,203 |
|
Net income |
| $ | 2,777 |
| $ | (1,209 | ) | $ | 1,568 |
|
Balance at December 31, 2005 |
| $ | 703,004 |
| $ | (4,535 | ) | $ | 698,469 |
|
F-17
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Combination
The accompanying consolidated and combined financial statements include all of the accounts of the Company, and its majority-owned and/or controlled subsidiaries. The portion of these entities not owned by the Company is presented as minority interestnoncontrolling interests as of and during the periods consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation.
Prior
When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”), and if the Company is deemed to be the primary beneficiary, in accordance with authoritative guidance issued by the FASB on the consolidation of variable interest entities. When an entity is not deemed to be a VIE, the Company considers the provisions of additional FASB guidance which determines whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates (i) entities that are VIEs and of which the Company is deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Company controls and the limited partners do not have the ability to dissolve the entity or remove the Company without cause nor substantive participating rights.
Adoption of Subsequent Accounting Pronouncements
The FASB issued authoritative guidance regarding noncontrolling interests in consolidated financial statements which was effective on January 1, 2009. The guidance states that noncontrolling interests are the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Under the guidance, such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from less-than-wholly-owned subsidiaries are reported at the consolidated amounts, including both the amounts attributable to the Formation Transactions, the Company had no significant operations; therefore, the combined operationsand noncontrolling interests. Presentation of consolidated equity activity is included for both quarterly and annual financial statements, including beginning balances, activity for the period prior to October 21, 2004 representand ending balances for shareholders’ equity, noncontrolling interests and total equity.
However, per the operationsFASB issued authoritative guidance on theclassification and measurement of redeemable securities, securities that are redeemable for cash or other assets at the option of the Predecessor. The combination didholder, not require any material adjustments to conformsolely within the accounting policiescontrol of the separate entities. The real estate entitiesissuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity in the accompanying consolidated balance sheets. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considered the FASB issued guidance onaccounting for derivative financial instruments indexed to, and combined financialpotentially settled in, a Company’s own stock to evaluate whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. The guidance also requires that noncontrolling interests are adjusted each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption fair value.
The consolidated results of the Company include results attributable to units of the Operating Partnership that are not owned by the Company, which amounted to approximately 8.1%, and 8.1%, respectively as of December 31, 2008, and 2007 of all outstanding units. These interests were issued in the form of Operating Partnership units and were a component of the consideration the Company paid to acquire certain self-storage facilities. Limited partners who acquired Operating Partnership units have the right to require the Operating Partnership to redeem part or all of their Operating Partnership units for, at the Company’s option, an equivalent number of common shares of the Company or cash based upon the fair market value of an equivalent number of common shares of the Company. However, the operating agreement contains certain circumstances that could result in a net cash settlement outside the control of the Company. Accordingly, consistent with the guidance discussed above, the Company will continue to record these non controlling interests outside of permanent equity in the consolidated balance sheets. Net income or loss related to these noncontrolling interests is excluded from net income or loss in the consolidated statements of the Predecessor have been consolidated and combinedoperations. Based on the basis that,Company’s evaluation of the redemption value of the redeemable noncontrolling interest, the Company has reflected these interests at their carrying value as of December 31, 2008.
Retrospective Impact of New Accounting Pronouncement Adopted January 1, 2009 (in thousands):
Statement of Operations:
|
| For the year ended December 31, 2008: |
| |||||||
|
| As Previously Reported |
| Adjustments (a) |
| As Adjusted |
| |||
Loss from continuing operations |
| $ | (17,540 | ) | $ | (5,888 | ) | $ | (23,428 | ) |
Total discontinued operations |
| 20,332 |
| 6,198 |
| 26,530 |
| |||
Net income (loss) |
| 2,792 |
| 310 |
| 3,102 |
| |||
Net income (loss) attributable to noncontrolling interests |
| — |
| (310 | ) | (310 | ) | |||
Net income (loss) attributable to the company |
| — |
| 2,792 |
| 2,792 |
| |||
|
|
|
|
|
|
|
| |||
|
| For the year ended December 31, 2007: |
| |||||||
|
| As Previously Reported |
| Adjustments (a) |
| As Adjusted |
| |||
Loss from continuing operations |
| $ | (19,048 | ) | $ | (5,322 | ) | $ | (24,370 | ) |
Total discontinued operations |
| 5,971 |
| 4,152 |
| 10,123 |
| |||
Net income (loss) |
| (13,077 | ) | (1,170 | ) | (14,247 | ) | |||
Net income (loss) attributable to noncontrolling interests |
| — |
| 1,170 |
| 1,170 |
| |||
Net income (loss) attributable to the company |
| — |
| (13,077 | ) | (13,077 | ) |
(a) Includes adjustments for the periods presented, such entities were under common management.discontinued operations discussed in Note 10.
Statement of Equity: |
|
|
|
|
|
|
| |||
|
| For the year ended December 31, 2008: |
| |||||||
|
| As Previously Reported |
| Adjustments |
| As Adjusted |
| |||
Adjustments for noncontrolling interests in operating partnership |
| $ | 367 |
| $ | (310 | ) | $ | 57 |
|
Net income |
| 2,792 |
| 310 |
| 3,102 |
| |||
|
|
|
|
|
|
|
| |||
|
| For the year ended December 31, 2007: |
| |||||||
|
| As Previously Reported |
| Adjustments |
| As Adjusted |
| |||
Adjustments for noncontrolling interests in operating partnership |
| $ | 1,469 |
| $ | 51,878 |
| $ | 53,347 |
|
Net loss |
| (13,077 | ) | (1,170 | ) | (14,247 | ) | |||
|
|
|
|
|
|
|
| |||
Statement of Cash Flows: |
|
|
|
|
|
|
| |||
|
| For the year ended December 31, 2008: |
| |||||||
|
| As Previously Reported |
| Adjustments |
| As Adjusted |
| |||
Net income |
| $ | 2,792 |
| $ | 310 |
| $ | 3,102 |
|
Minority interests |
| 310 |
| (310 | ) | — |
| |||
|
|
|
|
|
|
|
| |||
|
| For the year ended December 31, 2007: |
| |||||||
|
| As Previously Reported |
| Adjustments |
| As Adjusted |
| |||
Net loss |
| $ | (13,077 | ) | $ | (1,170 | ) | $ | (14,247 | ) |
Minority interests |
| (995 | ) | 995 |
| — |
| |||
Net cash provided by operating activities |
| 62,874 |
| (175 | ) | 62,699 |
| |||
Acquisitions, additions and improvements to storage facilities - related party |
| (121,805 | ) | 175 |
| (121,630 | ) | |||
Net cash used in investing activities |
| (153,576 | ) | 175 |
| (153,401 | ) |
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Although we believe the assumptions and estimates we made are reasonable and appropriate, as discussed in the applicable sections throughout these
consolidated financial statements, different assumptions and estimates could materially impact our reported results. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions and changes in market conditions could impact our future operating results.
Storage Facilities
Storage facilities are carried at historical cost less accumulated depreciation and impairment losses. The cost of storage facilities reflects their purchase price or development cost. Costs incurred for the acquisition and renovation of a storage facility are capitalized to the Company’s investment in that property. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. During 2009, 2008 and 2007, approximately $0.1 million, $0.5 million and $0.4 million of expense was incurred in conjunction with property related damage as a result of insured events such as fires, floods and hurricanes.
Purchase Price Allocation
Upon acquisition of a facility, we allocateWhen facilities are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Acquisitions of portfoliosWhen a portfolio of facilities areis acquired, the purchase price is allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates, which take into account the relative size, age and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land, buildingbuildings and improvements and estimates of depreciated replacement cost of equipment.
In allocating the purchase price, the Company determines whether the acquisitions includeacquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired facilities are at market rates, as substantially allthe majority of the leases are month-to-month contracts. Accordingly, to date no portion of the purchase price has been allocated to aboveabove- or below marketbelow-market lease intangibles. The Company also considers whether in-place, at market leases represent an intangible asset. Based on the Company’s experience, leases of this nature generally re-let in less than 30 days and lease-up costs are minimal. Accordingly, the Company had no intangible assets recorded for in-place, at market leases as of December 31, 2006. Additionally, toTo date, no intangible asset has been recorded for the value of tenant relationships, because the Company does not have any concentrations of significant tenants and the average tenant turnover is fairly frequent.
The Company recorded a $6.8 million intangible asset to recognize the value of in-place leases related to its acquisitions in 2007. Subsequently, during 2008, the Company acquired a finite-lived intangible asset valued at approximately $1.0 million as part of its acquisition of one self-storage facility. This asset represents the value of in-place leases at the time of acquisition and was fully amortized at December 31, 2009.
Depreciation and Amortization
The costs of self-storage facilities and improvements are depreciated using the straight-line method based on useful lives ranging from five to 40 years.
Impairment of Long-Lived Assets
We evaluate long-lived assets for impairment when events and circumstances such as declines in occupancy and operating results indicate that there may be impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets. Anassets to determine if the property’s basis is recoverable. If a property’s basis is not considered recoverable, an impairment loss is recorded ifto the extent the net carrying value of the asset exceeds the fair value based on its undiscounted future net operating cash flows attributable to the asset and circumstances indicate that the carrying value of the real estate asset may not be recoverable.value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. The Company recorded $2.3 million of assetThere were no impairment chargeslosses recognized in accordance with these procedures during 2005 (See Note 17). No asset impairment charges were recorded during 2006.2009, 2008 and 2007.
Long-Lived Assets Held for Sale
We consider long-lived assets to be “held for sale” upon satisfaction of the following criteria: (a) management commits to a plan to sell a facility (or group of facilities), (b) the facility is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such facilities, (c) an active program to locate a buyer and other actions required to complete the plan to sell the facility have been initiated, (d) the sale of the facility is probable and transfer of the asset is expected to be completed within one year, (e) the facility is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
Typically these criteria are all met when the relevant asset is under contract, significant non-refundable deposits have been made by the potential buyer, the assets are immediately available for transfer and there are no contingencies related to the sale that may prevent the transaction from closing. In most transactions, these conditions or criteria are not satisfied until the
actual closing of the transaction; and, accordingly, the facility is not identified as held for sale until the closing actually occurs. However, each potential transaction is evaluated based on its separate facts and circumstances. Properties classified as held for sale are reported at the lesser of carrying value or fair value less estimated costs to sell.
During 2005,2009, the Company sold four of its20 storage facilities locatedthroughout the United States (including one property that was held for sale as of December 31, 2008). During 2008, the Company sold 23 storage facilities throughout the United States. During 2007, the Company sold three storage facilities in Ohio that were acquired as part of the Liberty Self-Stor Portfolio acquisition (see Note 4).South Carolina and two additional facilities in Arizona. These sales have been accounted for as discontinued operations and, accordingly, the accompanying financial statements and notes reflect the results of operations of the storage facilities sold as discontinued operations (see Note 10). No facilities were sold during 2006.
Cash and Cash Equivalents
Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company maintainsmay maintain cash equivalents in financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions.
Restricted Cash
Restricted cash consists of purchase deposits and cash deposits required for debt service requirements, capital replacement, and expense reserves in connection with the requirements of our loan agreements.
Loan Procurement Costs
Loan procurement costs related to borrowings consist of $10.1$26.4 million and $13.0$10.6 million at December 31, 20062009 and 2005, respectively. These amounts2008, respectively and are reported net of accumulated amortization of $2.5$8.0 million and $3.9$6.2 million as of December 31, 20062009 and 2005,2008, respectively. The costs are amortized over the life of the related debt using the effective interest rate method and reported as loan procurement amortization expense.
Marketable Securities
The Company accounts for its investments in debt and equity securities according to the provisions of SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, which requires securities classified as “available-for-sale” to be stated at fair value. Adjustments to fair value of available-for-sale securities are recorded as a component of other comprehensive income (loss). A decline in the market value of equity securities below cost, that is deemed to be other than temporary, results in a reduction in the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. At December 31, 2005, we had $95.2 million in highly-liquid auction rate securities (“ARS”) and variable rate demand notes classified as available-for-sale securities. We invest in ARS to generate higher returns than traditional money market investments. Although these securities have long-term stated contractual maturities, they can be presented for redemption at auction when rates are reset which is typically every 7, 28 or 35 days. We had no realized or unrealized gains or losses related to these securities during the years ended December 31, 2006 and 2005. All income related to these investments was recorded as interest income. In accordance with our investment policy, we only invest in ARS with high credit quality issuers and limit the amount of investment exposure to any one issuer.
Other Assets
Other assets consist primarily of accounts receivable, insurance recovery receivablesprepaid expenses and prepaid expenses.intangible assets. Accounts receivable were $3.7$2.3 million and $3.2$2.8 million as of December 31, 20062009 and 2005,2008, respectively. The Company has recorded an allowance of approximately $1.0$0.4 million and $0.8$0.6 million, respectively, related to accounts receivable as of December 31, 20062009 and 2005.2008. The net carrying value of intangible assets as of December 31, 2008 was $0.1 million and were fully amortized as of December 31, 2009.
Notes Receivable
As of December 31, 2009, notes receivable of $20.1 million included three promissory notes originated in conjunction withmultiple asset dispositions. The original principal amounts of the promissory notes ranged from $0.3 million to $17.6 million, bearing interest at rates ranging from 6 to 10 percent with maturity dates ranging from two to three years. The Company periodically assesses the collectability of the notes receivable in accordance with the FASB guidance on accounting by creditors for impairment of a loan. No collectability issues were noted as of December 31, 2009.
Environmental Costs
Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional facilities. Whenever the environmental assessment for one of our facilities indicates that a facility is impacted by soil or groundwater contamination from prior owners/operators or other sources, we will work with our environmental consultants and where appropriate, state governmental agencies, to ensure that the facility is either cleaned up, that no cleanup is necessary because the low level of contamination poses no significant risk to public health or the environment, or that the responsibility for cleanup rests with a third party.
Revenue Recognition
Management has determined that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from long-term operating leases are recognized on a straight-line basis over the term of the respective lease. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in rents received in advancedeferred revenue in the accompanying consolidated and combined balance sheets and contractually due but unpaid rents are included in other assets.
The Company recognizes gains on disposition of properties only upon closing in accordance with the guidance on sales of real estate. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized using the full accrual method upon closing when the collectability of the sales price is reasonably assured and the
Company is not obligated to perform significant activities after the sale. Profit may be deferred in whole or part until the sale meets the requirements of profit recognition on sales under this guidance
Costs Associated with Exit or Disposal Activities
In October 2006, the Company committed to a plan to relocate its accounting, finance and information technology functions to the Philadelphia, Pennsylvania area. As part of the relocation of these functions, the Company provided severance arrangements for certain existing employees related to those functions. At the time the severance arrangements were entered into, the Company estimated a total expense of $470,000, of which $45,000 was paid in 2006.2006 and the remainder was paid in 2007.
In August 2007, the Company abandoned certain office space in Cleveland, Ohio that was previously used for its corporate offices. The related leases have expiration dates ranging from December 31, 2009 through December 31, 2014. Upon vacating the space, the Company entered into a sub-lease agreement with a sub-tenant to lease the majority of the space for the duration of the term.
As a result of this exit activity, the Company recognized a “Lease abandonment charge” of $1.3 million during the three months ended September 30, 2007. The charge was comprised of approximately $0.8 million of costs that represent the present value of the net cash flows associated with leases and the sub-lease agreement (“Contract Termination Costs”) and approximately $0.5 million of costs associated with the write-off of certain assets related to the abandoned space (“Other Associated Costs”). The Contract Termination Costs of $0.8 million are presented as “Accounts payable and accrued rent” and the Other Associated Costs of $0.5 million were accounted for as a reduction of “Storage facilities.” The Company expects to payamortizes the remainder duringContract Termination Costs against rental expense over the first quarterremaining life of 2007.the respective leases.
Advertising Costs
The Company incurs advertising costs primarily attributable to print advertisements in telephone books. The Company recognizes the costs when the related telephone book is first published. The Company recognized $4.4incurred $4.5 million, $3.6$3.8 million and $2.4$4.3 million in telephone book advertising expenses for the years ended 2006, 20052009, 2008 and 2004,2007, respectively.
Equity Offering Costs
Underwriting discount and commissions, financial advisory fees and offering costs are reflected as a reduction to additional paid-in capital.
Other Property Related Income
Other property related income consists of late fees, administrative charges, sales of storage supplies and other ancillary revenues. Revenues from sales of storage supplies and other ancillary revenues and related costs were earned by the TRS prior to October 27, 2004 and are not included in the operations of the Predecessor.
Capitalized Interest
The Company capitalizes interest incurred that is directly associated with construction activities until the asset is placed into service. Interest is capitalized to the related assets using a weighted-average rate of the Company’s outstanding debt. The Company capitalized $0.1 million during 20062009, 2008 and did not capitalize any interest during 2005 and 2004.2007.
Derivative Financial Instruments
We carryThe Company carries all derivatives on the balance sheet at fair value. We determineThe Company determines the fair value of derivatives by reference toobservable prices that are based on inputs not quoted on active markets, but corroborated by market prices.data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. OurThe Company’s use of derivative instruments has been limited to cash flow hedges of certain interest rate risks. AtThe Company had interest rate swap agreements for notional principal amounts aggregating $300 million at December 31, 2006 and 2005,2008. All of the CompanyCompany’s derivative financial instruments had no outstanding derivative contracts.matured by November 20, 2009.
Income Taxes
The Company elected to be taxed as a real estate investment trust under Sections 856-860 of the Internal Revenue Code beginning with the period from October 21, 2004 (commencement of operations) through December 31, 2004. In management’s opinion, the requirements to maintain these elections are being met. Accordingly, no provision for federal income taxes has been reflected in the consolidated financial statements other than for operations conducted through our taxable REIT subsidiary.subsidiaries.
Earnings and profits, which determine the taxability of distributions to shareholders, differ from net income reported for financial reporting purposes due to differences in cost basis, the estimated useful lives used to compute depreciation, and the allocation of net income and loss for financial versus tax reporting purposes. The tax basis in the Company’s assets was $1.4$1.3 billion as of December 31, 20062009 and $1.0$1.5 billion as of December 31, 2005.2008.
Distributions to shareholders are usually taxable as ordinary income, although a portion of the distribution may be designated as capital gain or may constitute a tax-free return of capital. Annually, the Company provides each of its shareholders a statement detailing distributions paid during the preceding year and their characterization as ordinary income, capital gain or return of capital. The characterization of the Company’s dividends for 2009 was 100% capital gain distribution.
The Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Company’s ordinary income and (b) 95% of the Company’s net capital gain exceeds cash distributions and certain taxes paid by the Company. No excise tax was incurred in 2006, 2005,2009, 2008, or during2007.
Taxable REIT subsidiaries, such as the period from October 21, 2004 through December 31, 2004.
The TRS, isare subject to federal and state income taxes. The TRS recorded a net deferred tax asset of $0.3 million and $0.1$0.5 million as of December 31, 20062009 and 2005, respectively,2008 related to expenses which are deductible for tax purposes in future periods.
Each member of the Predecessor is treated as a partnership for federal and state income tax purposes, so the tax effects of the Predecessor’s operations are the responsibility of the partners and members of these entities. Accordingly, the Predecessor does not record any provision for income taxes in the consolidated and combined financial statements.
Noncontrolling Minority Interests
Minority Interests includeNoncontrolling interests are the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income allocated to holders ofor loss from less-than-wholly-owned subsidiaries are reported at the Operating Partnership Units (the “OP Minority Interests”). Income is allocatedconsolidated amounts, including both the amounts attributable to the OP Minority Interests based on their ownership percentageCompany and noncontrolling interests. Presentation of the Operating Partnership. This ownership percentage, as well as the total net assets of the Operating Partnership, changes when additional shares of our common stock or Operating Partnership Units are issued. Such changes result in an allocation between shareholders’consolidated equity activity is included for both quarterly and Minority Interests in the Consolidated Balance Sheets. Due to the number of such capital transactions that occur each period, we have presented a single net effect of all such allocationsannual financial statements, including beginning balances, activity for the period asand ending balances for shareholders’ equity, noncontrolling interests and total equity. The Company has adjusted the “Adjustment for Minority Interestcarrying value of its noncontrolling interests subject to redemption value to the extent applicable. Disclosure of such redemption provisions is provided in Operating Partnership” in our Consolidated Statements of Shareholders’ Equity and Owners’ Equity (Deficit) (rather than separately allocating the minority interest for each individual capital transaction).Note 7.
Earnings per Share
Basic earnings per share is calculated based on the weighted average number of common shares and restricted shares outstanding and/or vested during the period. Diluted earnings per share is calculated by further adjusting for the dilutive impact of share options, unvested restricted shares and contingently issuable shares outstanding during the period using the treasury stock method. The total dilutive impactCommon shares of these items totaled approximately 121,000547,000, 94,000 and 83,00022,000 in 20062009, 2008 and 2005, and was2007, respectively, were not included in the calculation of diluted earnings per share, unless the inclusion would beas they were identified as anti-dilutive. There were no dilutive shares for the period from October 27, 2004 through December 31, 2004.
Share Based Payments
We apply the fair value method of accounting for contingently issued shares and share options issued under our incentive award plan. Accordingly, share compensation expense wasis recorded ratably over the vesting period relating to such contingently issued shares and options. The Company has elected to recognizerecognized compensation expense on a straight-line method over the requisite service period. Additionally, certain restricted shares awarded
Foreign Currency
The financial statements of foreign subsidiaries are translated to Robert J. Amsdell,U.S. Dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for each period for revenues, expenses, and capital expenditures. The local currency is the functional currency for the Company’s foreign subsidiaries. Translation adjustments for foreign subsidiaries are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. The Company recognizes transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred. The Pound, which represents the functional currency used by USIFB, LLP, our former Chairmanjoint venture in England, was translated at an end-of-period exchange rate of approximately 1.62212 and Chief Executive Officer, vested immediately upon his retirement from1.4619 U.S. Dollars per Pound at December 31, 2009 and December 31, 2008, respectively, and an average exchange rate of 1.56476 and 1.8669 U.S. Dollars per Pound for the Company by their terms. Since he reached the retirement age set forth in his award during 2005, share compensation expense related to this issuance was expensed fully in 2005.years ended December 31, 2009 and December 31, 2008, respectively.
Recent Accounting Pronouncements
In September 2006,The Financial Accounting Standards Board (“FASB”) established the FASB Accounting Standards Codification™ (“Codification”) as the source of authoritative GAAP recognized by the FASB issued SFAS No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157 provides guidance for using fair value to measure assets and liabilities. This statement clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability. SFAS No. 157 establishes a fair value hierarchy, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable data. SFAS No. 157 applies whenever other standards require assets or liabilities to be measured at fair value. This statementapplied by nongovernmental entities in the preparation of financial statements issued for interim and annual periods ending after September 15, 2009. The Codification has changed the manner in which GAAP guidance is effective in fiscal years beginning after November 15, 2007. The Company believes that the adoption of this standard on January 1, 2008 willreferenced, but did not have a material effectan impact on our consolidated financial statements.position, results of operations or cash flows.
In September 2006, the Securities and Exchange CommissionThe FASB issued Staff Accounting Bulletin No. 108, Considering the Effectsauthoritative guidance on accounting for transfers of Prior Year Misstatements when Quantifying Misstatements financial assetsin Current Year Financial Statements (“SAB 108”),June 2009, which became
effective for the Companywe adopted on a prospective basis beginning on January 1, 2007. SAB 108 provides2010. The guidance onrequires entities to provide more information regarding sales of securitized financial assets and similar transactions, particularly if the consideration of the effects of prior period misstatements in quantifying current year misstatements for the purpose of a materiality assessment. SAB 108 provides for the quantification of the impact of correcting all misstatements, including both the carryover and reversing effects of prior year misstatements, on the current year financial statements. If a misstatement is materialentity has continuing exposure to the current yearrisks related to transferred financial statements, the prior year financial statements should also be corrected, even though such revision was, and continues to be, immaterial to the prior year financial statements. Correcting prior year financial statements for immaterial errors would not require previously filed reports to be amended. Such correction should be made in the current period filings. Effective September 30, 2006 the Company early adopted SAB 108. As described in Note 2, the Company has restated its financial statements for the period October 21, 2004 to December 31, 2004, as of and for the year ended December 31, 2005 and has also restated the Predecessor’s financial statements for the period January 1, 2004 to October 20, 2004. Accordingly, the adjustments previously reflected in the 2006 opening accumulated deficit as the result of the adoption of SAB 108 have been restated into the appropriate prior periods.
In June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (“FIN 48”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on description, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 became effective for the Company on January 1, 2007. The Company has evaluated the impact of adopting FIN 48 and has concluded the adoption of this standard will not have a material impact on the consolidated financial statements.
In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of Financial Assets, an Amendment of SFAS No. 140 (“SFAS No. 156”). SFAS No. 156 requires separate recognition of a servicing asset and a servicing liability each time an entity undertakes an obligation to service a financial asset by entering into a service contract. This statement also requires that servicing assets and liabilities be initially recorded at fair value and subsequently adjusted to the fair value at the end of each reporting period. This statement is effective in fiscal years beginning after September 15, 2006. The Company does not expect the adoption of this standard on January 1, 2007 to have a material effect on the consolidated financial statements.
In February 2006, the FASB issued SFAS No.155, Accounting for Certain Hybrid Financial Instruments — An Amendment of FASB No. 133 and 140. The purpose of SFAS No.155 is to simplify the accounting for certain hybrid financial instruments by permitting fair value re-measurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation. SFAS No. 155assets. It also eliminates the restriction on passive derivative instruments thatconcept of a qualifying“qualifying special-purpose entity, may hold. SFAS No. 155 is effective” changes the requirements for allderecognizing financial instruments acquired or issued after the beginning of an entity’s first fiscal year beginning after September 15, 2006.assets and requires additional disclosures. The Company does not expect the adoption of this standard on January 1, 2007 to have a material effect on the consolidated financial statements.
In October 2005, the FASB issued Staff Position No. 13-1 Accounting for Rental Costs Incurred during a Construction Period (“FSP FAS 13-1”). FSP FAS 13-1 addresses the accounting for rental costs associated with operating leases that are incurred during the construction period. FSP FAS 13-1 makes no distinction between the right to use a leased asset during the construction period and the right to use that asset after the construction period. Therefore, rental costs associated with ground or building operating leases that are incurred during a construction period shall be recognized as rental expense, allocated over the lease term in accordance with SFAS No. 13 and Technical Bulletin 85-3. The terms of FSP FAS 13-1 are not applicable to lessees that account for the sale or rental of real estate projects in accordance with SFAS No. 67, “Accounting for Costs and Initial Rental Operations of Real Estate Projects.” FSP FAS 13-1 was effective for the first reporting period beginning after December 15, 2005. Retrospective application in accordance with SFAS No. 154 is permitted but not required. The adoption of FSP FAS 13-1 did not have a material effect on the consolidated financial statements of the Company.
In September 2005, the Emerging Issues Task Force issued EITF 04-05, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights (“EITF 04-05”). The scope of EITF 04-05 is limited to limited partnerships or similar entities that are not variable interest entities under FIN 46R. The Task Force reached a consensus that the general partners in a limited partnership (or similar entity) are presumed to control the entity regardless of the level of their ownership and, accordingly, may be required to consolidate the entity. This presumption may be overcome if the agreements provide the limited partners with either (a) the substantive ability to dissolve (liquidate) the limited partnership or otherwise remove the general partners without cause or (b) substantive participating rights. If it is deemed that the limited partners’ rights overcome the presumption of control by a general partner of the limited partnership, the general partner shall
account for its investment in the limited partnership using the equity method of accounting. EITF 04-05 was effective immediately for all arrangements created or modified after September 29, 2005. For all other arrangements, application of EITF 04-05 is required effective for the first reporting period in fiscal years beginning after December 15, 2005 (i.e., effective January 1, 2006 for the Company) using either a cumulative-effect-type adjustment or using a retrospective application. The adoption of EITF 04-05 did not have an effectimpact on the Company’sour consolidated financial statements.position, results of operations or cash flows.
In May 2005, the
The FASB issued SFAS No. 154, Accounting Changesauthoritative guidance on how a company determines when an entity should be consolidated in June 2009, which we adopted on a prospective basis beginning January 1, 2010. The guidance clarifies that the determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and Error Corrections (“SFAS No. 154”). SFAS No. 154 replaces APB No. 20, “Accounting Changes”design and SFAS No. 3, “Reporting Accounting Changesa company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance. The guidance requires an ongoing reassessment of whether a company is the primary beneficiary of a variable interest entity. It also requires additional disclosures about a company’s involvement in Interim Financial Statements”variable interest entities and establishes retrospectiveany significant changes in risk exposure due to that involvement. The application as the required method for reporting a change in accounting principle. SFAS No. 154 providesdid not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance foron determining whether instruments granted in share-based payment transactions are participating securities in June 2008, which we adopted on a retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable. SFAS No. 154 is effective for accounting changes and corrections of errors made in fiscal yearsprospective basis beginning after December 15, 2005. The Company adopted SFAS No. 154 on January 1, 20062009. The guidance states that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and has applied this standardshould be included in conjunction with its restatement (see Note 2).the computation of earnings per share pursuant to the two-class method. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
In March 2005, theThe FASB issued Interpretation No. 47, Accountingauthoritative guidance on accounting for Conditional Asset Retirement Obligationsconvertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) (“FIN 47”), an interpretation of SFAS No. 143, Asset Retirement Obligations. FIN 47 provides clarification of the term “conditional asset retirement obligation” as used in SFAS No. 143, defined as a legal obligation to perform an asset retirement activity inMay 2008, which the timing and/or method of settlement are conditionalwe adopted on a future eventprospective basis beginning January 1, 2009. The guidance requires that may or may notinstruments within its scope be withinseparated into their liability and equity components atinitial recognition by recording the control of the company. Under this standard, a company must record a liability for a conditional asset retirement obligation ifcomponent at the fair value of a similar liability that does not have an associated equity component and attributing the obligation canremaining proceeds from issuance to the equity component. The excess of the principal amount of the liability component over its initial fair value will be reasonably estimated. FIN 47 became effective inamortized to interest expense using the Company’s quarter ended December 31, 2005.interest method. The Company adopted FIN 47 as required effective December 31, 2005 and the initial application of FIN 47 did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding the hierarchy of generally accepted accounting principles in May 2008, which we adopted on a materialprospective basis beginning January 1, 2009. The guidance states that the GAAP hierarchy will now reside in the accounting literature established by the FASB. The guidance identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements in conformity with GAAP. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding disclosures about derivative instruments and hedging activities in March 2008, which we adopted on a prospective basis beginning January 1, 2009. The guidance enhances required disclosures regarding derivatives and hedging activities, including enhanced disclosures regarding how an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under previous guidance and the impact of derivative instruments and related hedged items on an entity’s financial position, financial performance and cash flows. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding business combinationsin December 2007, which we adopted on a prospective basis beginning January 1, 2009. The guidance establishes principles and requirements for recognizing identifiable assets acquired, liabilities assumed, noncontrolling interest in the acquiree, goodwill acquired in the combination or the gain from a bargain purchase, and disclosure requirements. Under this guidance, all costs incurred to effect an acquisition will be recognized separately from the acquisition. Also, restructuring costs that are expected but the acquirer is
not obligated to incur will be recognized separately from the acquisition. The application did not have an impact on our consolidated financial position, results of operations or cash flows.
The FASB issued authoritative guidance regarding noncontrolling interests in consolidated Financial Statements in December 2007, which we adopted on a prospective basis beginning January 1, 2009. The guidance requires that ownership interests in subsidiaries held by parties other than the parent be clearly identified. In addition, it requires that the amount of consolidated net income attributable to the parent and to the noncontrolling interest be clearly identified and presented on the face of the income statement. The retrospective application to the financial statements impacted certain financial statement footnote disclosures but did not impact our consolidated financial statementsposition, results of the Company.operations or cash flows.
Operating SegmentConcentration
The Company has one reportable operating segment; it owns, operates, develops, and manages storage facilities.
Concentration of Credit Risk
The storage facilities are located in major metropolitan and rural areas and have numerous tenants per facility. No single tenant represents 1% or morea significant concentration of the Company’sour revenues. The facilities in Florida, California, IllinoisTexas and New JerseyIllinois provided total revenues of approximately 19%18%, 16%15%, 7%10% and 6%7%, respectively, for the year ended December 31, 20062009. The facilities in Florida, California, Texas and 24%Illinois provided total revenues of approximately 19%, 11%15%, 10%9% and 8%7%, respectively, for the year ended December 31, 2005.2008.
4.3. STORAGE FACILITIES
The following summarizes the real estate assets of the Company as of:of December 31, 2009 and December 31, 2008:
|
| December 31, |
| December 31, |
| |||||||||
|
| December 31, |
| December 31, |
|
| 2009 |
| 2008 |
| ||||
|
| (in thousands) |
|
| (in thousands) |
| ||||||||
Land |
| $ | 370,196 |
| $ | 301,188 |
|
| $ | 369,842 |
| $ | 387,831 |
|
Buildings and improvements |
| 1,226,690 |
| 958,759 |
|
| 1,243,047 |
| 1,300,711 |
| ||||
Equipment |
| 173,496 |
| 125,456 |
|
| 157,452 |
| 198,981 |
| ||||
Construction in progress |
| 1,482 |
| 1,383 |
|
| 4,201 |
| 600 |
| ||||
Total |
| 1,771,864 |
| 1,386,786 |
|
| 1,774,542 |
| 1,888,123 |
| ||||
Less accumulated depreciation |
| (205,049 | ) | (140,491 | ) |
| (344,009 | ) | (328,165 | ) | ||||
Storage facilities — net |
| $ | 1,566,815 |
| $ | 1,246,295 |
|
| $ | 1,430,533 |
| $ | 1,559,958 |
|
The Company completed the following acquisitions, dispositions and consolidations for the years ended December 31, 20052008 and 2006:2009:
|
|
|
| Total |
|
|
| |
|
|
|
| Number of |
| Purchase |
| |
Facility/Portfolio |
| Acquisition Date |
| Facilities |
| Price (000s) |
| |
Rising Tide Property |
| January 2005 |
| 1 |
| $ | 7,300 |
|
Gaithersburg, MD Facility |
| January 2005 |
| 1 |
| 11,800 |
| |
Rising Tide Properties |
| March 2005 |
| 2 |
| 11,800 |
| |
Ford Storage Portfolio |
| March 2005 |
| 5 |
| 15,500 |
| |
A-1 Storage Portfolio |
| March 2005 |
| 5 |
| 21,700 |
| |
Liberty Self-Stor Portfolio |
| April 2005 |
| 14 |
| 27,200 |
| |
Frisco I & II, TX and Ocoee, FL Facilities |
| April 2005 |
| 3 |
| 14,850 |
| |
Ace Self Storage |
| May 2005 |
| 1 |
| 6,400 |
| |
Extra Closet Facilities |
| May 2005 |
| 2 |
| 6,800 |
| |
Tempe, AZ Facility |
| July 2005 |
| 1 |
| 2,900 |
| |
Clifton, NJ Facility |
| July 2005 |
| 1 |
| 16,800 |
| |
National Self Storage Portfolio |
| July 2005 |
| 71 |
| 214,500 |
| |
Elizabeth, NJ and Hoboken, NJ Facilities |
| August 2005 |
| 2 |
| 8,200 |
| |
Colorado Portfolio |
| September 2005 |
| 7 |
| 19,600 |
| |
Miami, FL Facilities |
| September 2005 |
| 2 |
| 17,700 |
| |
Pensacola, FL Facility |
| September 2005 |
| 1 |
| 7,900 |
| |
Texas Storage Portfolio |
| September 2005 |
| 4 |
| 15,500 |
| |
Dallas, TX Portfolio |
| October 2005 |
| 6 |
| 17,900 |
| |
Jacksonville, FL Facility |
| November 2005 |
| 1 |
| 7,200 |
| |
Texas Facility |
| November 2005 |
| 1 |
| 5,500 |
| |
California Portfolio |
| December 2005 |
| 6 |
| 57,000 |
| |
Fredericksburg, VA Facilities |
| December 2005 |
| 2 |
| 13,300 |
| |
Nashville, TN Portfolio |
| December 2005 |
| 3 |
| 14,750 |
| |
|
| 2005 Total (1) |
| 142 |
| $ | 542,100 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Nashville, TN Portfolio |
| January 2006 |
| 2 |
| $ | 13,100 |
|
Dallas, TX Portfolio |
| January 2006 |
| 2 |
| 11,500 |
| |
U-Stor Self Storage Portfolio |
| February 2006 |
| 3 |
| 10,800 |
| |
Sure Save Portfolio |
| February 2006 |
| 24 |
| 164,500 |
| |
Texas Storage Portfolio |
| March 2006 |
| 4 |
| 22,500 |
| |
Nickey Portfolio |
| April 2006 |
| 4 |
| 13,600 |
| |
SecurCare Portfolio |
| May 2006 |
| 4 |
| 35,700 |
| |
Texas Storage Portfolio |
| June 2006 |
| 1 |
| 6,500 |
| |
Jernigan Portfolio |
| July 2006 |
| 9 |
| 45,300 |
| |
U-Stor Self Storage Portfolio |
| August 2006 |
| 1 |
| 3,500 |
| |
Bailes Portfolio |
| August 2006 |
| 3 |
| 15,600 |
| |
In & Out Self Storage Portfolio |
| August 2006 |
| 1 |
| 7,600 |
| |
Texas Storage Portfolio |
| September 2006 |
| 2 |
| 12,200 |
| |
|
| 2006 Total |
| 60 |
| $ | 362,400 |
|
|
|
|
|
|
|
|
| |
|
| 2005 and 2006 Total (1) |
| 202 |
| $ | 904,500 |
|
Facility/Portfolio |
| Location |
| Transaction Date |
| Number of Facilities |
| Purchase / Sales |
| |
|
|
|
|
|
|
|
|
|
| |
2009 Dispositions: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
68th Street Asset |
| Miami, FL |
| January 2009 |
| 1 |
| $ | 2,973 |
|
Albuquerque, NM Asset |
| Albuquerque, NM |
| April 2009 |
| 1 |
| 2,825 |
| |
S. Palmetto Asset |
| Ontario, CA |
| June 2009 |
| 1 |
| 5,925 |
| |
Hotel Circle Asset |
| Albuquerque, NM |
| July 2009 |
| 1 |
| 3,600 |
| |
Jersey City Asset |
| Jersey City, NJ |
| August 2009 |
| 1 |
| 11,625 |
| |
Dale Mabry Asset |
| Tampa, FL |
| August 2009 |
| 1 |
| 2,800 |
| |
Winner Assets |
| Multiple locations in CO |
| September 2009 |
| 6 |
| 17,300 |
| |
Baton Rouge Asset (Eminent Domain) |
| Baton Rouge, LA |
| September 2009 |
| (b) |
| 1,918 |
| |
North H Street Asset (Eminent Domain) |
| San Bernardino, CA |
| September 2009 |
| 1 |
| (c | ) | |
Boulder Assets (a) |
| Boulder, CO |
| September 2009 |
| 4 |
| 32,000 |
| |
Winner Assets |
| Multiple locations in CO |
| October 2009 |
| 2 |
| 6,600 |
| |
Brecksville Asset |
| Brecksville, OH |
| November 2009 |
| 1 |
| 3,300 |
| |
|
|
|
|
|
| 20 |
| $ | 90,866 |
|
|
|
|
|
|
|
|
|
|
| |
2008 Acquisitions: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Uptown Asset |
| Washington, DC |
| January 2008 |
| 1 |
| $ | 13,300 |
|
|
|
|
|
|
|
|
|
|
| |
2008 Dispositions: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
77th Street Asset |
| Miami, FL |
| March 2008 |
| 1 |
| $ | 2,175 |
|
Leesburg Asset |
| Leesburg, FL |
| March 2008 |
| 1 |
| 2,400 |
| |
Lakeland Asset |
| Lakeland, FL |
| April 2008 |
| 1 |
| 2,050 |
| |
Endicott Asset |
| Union, NY |
| May 2008 |
| 1 |
| 2,250 |
| |
Linden Asset |
| Linden, NJ |
| June 2008 |
| 1 |
| 2,825 |
| |
Baton Rouge/Prairieville Assets |
| Multiple Locations in LA |
| June 2008 |
| 2 |
| 5,400 |
| |
Churchill Assets |
| Multiple locations in MS |
| August 2008 |
| 4 |
| 8,333 |
| |
Biloxi/Gulf Breeze Assets |
| Multiple locations in MS/FL |
| September 2008 |
| 2 |
| 10,760 |
| |
Deland Asset |
| Deland, FL |
| September 2008 |
| 1 |
| 2,780 |
| |
Mobile Assets |
| Mobile, AL |
| September 2008 |
| 2 |
| 6,140 |
| |
Hudson Assets |
| Hudson, OH |
| October 2008 |
| 2 |
| 2,640 |
| |
Stuart/Vero Beach Assets |
| Multiple locations in FL |
| October 2008 |
| 2 |
| 4,550 |
| |
Skipper Road Assets |
| Multiple locations in FL |
| November 2008 |
| 2 |
| 5,020 |
| |
Waterway Asset |
| Miami, FL |
| December 2008 |
| 1 |
| 4,635 |
| |
|
|
|
|
|
| 23 |
| $ | 61,958 |
|
(1) (a)The Company provided $17.6 million in seller financing to the buyer as part of the Boulder Assets disposition.
(b)Approximately one third of the Baton Rouge Asset was taken in conjunction with eminent domain proceedings. The Company continues to own and operate the remaining two thirds of the asset and include the asset in the Company’s total numberportfolio property count.
(c)The entirety of facilities excludes four facilities that were purchasedthe North H Street Asset was taken in conjunction with eminent domain proceedings and subsequently sold during 2005. Additionally, we consolidated 4 facilities into existing facilities during 2005.
the Company removed this asset from its total portfolio asset count. The following table summarizesCompany expects to finalize compensatory terms with discussions with the change in numberState of self-storage facilities from January 1, 2005 through December 31, 2006:
The purchase price allocations were finalized duringCalifornia by the fourth quarter of 2005 for all acquisitions completed through September 30, 2005. As a result,2010.
4. INTANGIBLE ASSETS
During the year ended December 31, 2007, the Company acquired finite-lived intangible assets valued at approximately $6.8 million as part of its 2007 acquisitions. These assets represent the value of in-place leases at the time of acquisition. The intangible assets became fully amortized, with $4.6 million and $2.2 million recognized as amortization expense during the fourthyear ended December 31, 2008 and 2007, respectively.
During the quarter of 2005,ended March 31, 2008, the Company adjustedacquired a finite-lived intangible asset valued at approximately $1.0 million as part of its acquisition of one self-storage facility. This asset represents the allocationvalue of certain assigned valuesin-place leases at the time of fixed assetsacquisition. The estimated life of approximately $2.5 million,this asset at the time of acquisition was 12 months. The Company recognized amortization expense related to acquisitions completed inthis asset of $0.1 million and $0.9 million during the third quarter of 2005, primarily between land2009 and buildings. Similarly, in 2006, adjustments were made between land and building of approximately $31.6 million. These adjustments did not have a material impact on depreciation expense for the periods.2008 periods, respectively.
| 2006 |
| 2005 |
| |
Balance - Beginning of year |
| 339 |
| 201 |
|
Facilities acquired |
| 60 |
| 146 |
|
Facilities consolidated |
| — |
| (4 | ) |
Facilities sold |
| — |
| (4 | ) |
Balance - End of year |
| 399 |
| 339 |
|
5. REVOLVINGSECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND UNSECUREDSECURED TERM LOANLOANS
As of
On December 31, 2006, 8, 2009, the Company and its operating partnershipOperating Partnership entered into a three-year, $450 million senior secured credit facility (the “secured credit facility”), consisting of a $200 million secured term loan and a $250 million secured revolving credit facility. The secured credit facility is secured by mortgages on borrowing base properties. The outstanding balance on the Company’s secured credit facility as of December 31, 2009 was comprised of $200 million of secured term loan borrowings. As of December 2009, approximately $250 million was available under the Company’s secured credit facility. Borrowings under the secured credit facility bear interest ranging from 3.25% to 4.00% over LIBOR, with a LIBOR floor of 1.5%, depending on our leverage ratio. At December 31, 2009, borrowings under the secured credit facility had a weighted average interest rate of 5.0% and the Company was in place acompliance with all financial covenants of the agreement.
The secured credit facility replaced the prior, three-year $450 million unsecured credit facility, includingwhich was entered into in November 2006, consisting of $200 million in an unsecured term loan and $250 million in unsecured revolving loans, for whichloans. The balance of the outstanding balanceunsecured credit facility was $290.5 million and was comprised of $200 million of term loan borrowings and $90.5 million of unsecured revolving loans. As ofpaid off in December 31, 2006, the Company had approximately $159.5 million available under the Company’s credit facility. 2009. Borrowings under thethis former credit facility bearincurred interest, at our option, at either an alternative base rate or a Eurodollar rate, in each case, plus an applicable margin based on our leverage ratio or our credit rating. The alternative base interest rate is a fluctuating rate equal to the higher of the prime rate or the sum of the federal funds effective rate plus 50 basis points. The applicable margin for the alternative base rate will vary from 0.00% to 0.50% depending on our leverage ratio prior to achieving an investment grade rating, and will vary from 0.00% to 0.25% depending on our credit rating after achieving an investment grade rating. The
On September 14, 2007, the Company and its Operating Partnership entered into a credit agreement that allowed for total secured term loan borrowings of $50.0 million and subsequently amended the agreement on April 3, 2008 to allow for total secured term loan borrowings of $57.4 million. Each term loan bore interest at either an alternative base rate or a Eurodollar rate, isat our option, in each case plus an applicable margin. The outstanding term loans were secured by a ratepledge by the Company’s Operating Partnership of interest that is fixed for interest periods of one, two, three or six months based onall equity interests in YSI RT LLC, the LIBOR rate determined two business days prior to the commencementwholly-owned subsidiary of the applicable interest period.Operating Partnership that acquired eight self-storage facilities in September 2007 and one self-storage facility in May 2008. The applicable margin for the Eurodollar rate will vary from 1.00% to 1.50% depending on our leverage ratio prior to achieving an investment grate rating, and will vary from 0.425% to 1.00% depending on our credit rating after achieving an investment grade rating. This credit facility is scheduled to terminate on November 20, 2009, with an option for the Company to extend the termination date to November 20, 2010. At December 31, 2006, borrowings under the unsecured credit facility had a weighted average interest rate of 6.63%.
The November 2006 credit facility effectively replaced the former $250 million unsecured revolving credit facility that was established in February 2006 and a $50 million term loan that was entered into and terminated during November 2006. The former credit facility had a balance of $240.5 million andthe term loans was scheduled to terminate in February 2009 prior to being replaced.paid off on August 11, 2009.
The February 2006 unsecured revolving credit facility replaced the Company’s existing $150.0 million facility, which had no outstanding balance as
Table of December 31, 2005 and was scheduled to terminate in October 2007.Contents
6. MORTGAGE LOANS AND NOTES PAYABLE
The Company’s mortgage loans and notes payable are summarized as follows:
|
|
|
|
|
| Effective Interest |
|
|
| ||
|
| Carrying Value as of: |
| Rate on |
|
|
| ||||
|
| December 31, |
| December 31, |
| December 31, |
| Maturity |
| ||
Mortgage Loan |
| 2006 |
| 2005 |
| 2006 |
| Date |
| ||
Acquiport III |
| $ | — |
| $ | 65,090 |
|
|
| 10/31/2006 |
|
USI II |
| — |
| 39,132 |
|
|
| 12/10/2006 |
| ||
YSI XXIII |
| 1,322 |
| 1,349 |
| 5.00 | % | 6/1/2007 |
| ||
YSI XXIV |
| — |
| 2,590 |
|
|
| 6/1/2007 |
| ||
YSI XVI |
| 14,261 |
| — |
| 6.49 | % | 11/1/2007 |
| ||
YSI XXII |
| 993 |
| 1,012 |
| 5.00 | % | 11/1/2007 |
| ||
YSI XXIX |
| 4,374 |
| 4,505 |
| 5.00 | % | 1/1/2008 |
| ||
YSI XXI |
| 1,217 |
| 1,251 |
| 5.00 | % | 4/1/2008 |
| ||
Acquiport IV |
| 2,425 |
| 2,486 |
| 7.71 | % | 12/1/2008 |
| ||
Acquiport VI |
| 1,787 |
| 1,824 |
| 8.43 | % | 8/1/2009 |
| ||
YSI III |
| 88,332 |
| 89,870 |
| 5.09 | % | 11/11/2009 |
| ||
YSI I |
| 88,362 |
| 89,872 |
| 5.19 | % | 5/11/2010 |
| ||
YSI IV |
| 6,299 |
| 6,364 |
| 5.25 | % | 7/1/2010 |
| ||
YSI XXV |
| 8,304 |
| 8,400 |
| 5.00 | % | 10/1/2010 |
| ||
YSI XXVI |
| 10,176 |
| 10,383 |
| 5.00 | % | 10/1/2010 |
| ||
Promissory Notes |
| 132 |
| 163 |
| 5.97 | % | 11/1/2010 |
| ||
YSI II |
| 88,400 |
| 89,875 |
| 5.33 | % | 1/11/2011 |
| ||
YSI XII |
| 1,634 |
| 1,666 |
| 5.97 | % | 9/1/2011 |
| ||
YSI XIII |
| 1,404 |
| 1,432 |
| 5.97 | % | 9/1/2011 |
| ||
YSI VI |
| 80,000 |
| 80,000 |
| 5.13 | % | 8/1/2012 |
| ||
YASKY |
| 80,000 |
| 80,000 |
| 4.96 | % | 9/1/2012 |
| ||
YSI XIV |
| 1,952 |
| 1,994 |
| 5.97 | % | 1/1/2013 |
| ||
YSI VII |
| 3,334 |
| — |
| 6.50 | % | 6/1/2013 |
| ||
YSI VIII |
| 1,905 |
| — |
| 6.50 | % | 6/1/2013 |
| ||
YSI IX |
| 2,096 |
| — |
| 6.50 | % | 6/1/2013 |
| ||
YSI XVII |
| 4,583 |
| — |
| 6.32 | % | 7/1/2013 |
| ||
YSI XXVII |
| 561 |
| 575 |
| 5.59 | % | 11/1/2013 |
| ||
YSI XXX |
| 8,233 |
| 8,429 |
| 5.59 | % | 11/1/2013 |
| ||
YSI XI |
| 2,660 |
| — |
| 5.87 | % | 12/1/2013 |
| ||
YSI V |
| 3,513 |
| 3,581 |
| 5.25 | % | 1/1/2014 |
| ||
YSI XXVIII |
| 1,712 |
| 1,746 |
| 5.59 | % | 2/1/2014 |
| ||
YSI X |
| 4,367 |
| — |
| 5.87 | % | 1/1/2015 |
| ||
YSI XV |
| 2,036 |
| — |
| 6.41 | % | 1/1/2015 |
| ||
YSI XX |
| 71,050 |
| 72,352 |
| 5.97 | % | 11/1/2015 |
| ||
Unamortized premiums |
| 1,507 |
| 3,341 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total mortgage loans and notes payable |
| $ | 588,930 |
| $ | 669,282 |
|
|
|
|
|
|
| Carrying Value as of: |
|
|
|
|
| ||||
|
| December 31, |
| December 31, |
| Effective |
| Maturity |
| ||
Mortgage Loan |
| 2009 |
| 2008 |
| Interest Rate |
| Date |
| ||
|
| (in thousands) |
|
|
|
|
| ||||
Acq 6 |
| — |
| 1,701 |
| 8.43 | % | Aug-09 |
| ||
YSI 3 |
| — |
| 85,020 |
| 5.09 | % | Nov-09 |
| ||
YSI 1 |
| 83,342 |
| 85,105 |
| 5.19 | % | May-10 |
| ||
YSI 4 |
| 6,065 |
| 6,150 |
| 5.25 | % | Jul-10 |
| ||
YSI 26 |
| 9,475 |
| 9,724 |
| 5.00 | % | Aug-10 |
| ||
YSI 25 |
| 7,975 |
| 8,093 |
| 5.00 | % | Oct-10 |
| ||
Promissory Notes |
| — |
| 75 |
| 5.97 | % | Nov-10 |
| ||
YSI 2 |
| 83,480 |
| 85,213 |
| 5.33 | % | Jan-11 |
| ||
YSI 12 |
| 1,520 |
| 1,561 |
| 5.97 | % | Sep-11 |
| ||
YSI 13 |
| 1,307 |
| 1,342 |
| 5.97 | % | Sep-11 |
| ||
YSI 6 |
| 77,370 |
| 78,543 |
| 5.13 | % | Aug-12 |
| ||
YASKY |
| 80,000 |
| 80,000 |
| 4.96 | % | Sep-12 |
| ||
USIFB |
| 3,834 |
| 3,509 |
| 4.59 | % | Oct-12 |
| ||
YSI 14 |
| 1,812 |
| 1,862 |
| 5.97 | % | Jan-13 |
| ||
YSI 7 |
| 3,163 |
| 3,224 |
| 6.50 | % | Jun-13 |
| ||
YSI 8 |
| 1,808 |
| 1,842 |
| 6.50 | % | Jun-13 |
| ||
YSI 9 |
| 1,988 |
| 2,026 |
| 6.50 | % | Jun-13 |
| ||
YSI 17 |
| 4,246 |
| 4,365 |
| 6.32 | % | Jul-13 |
| ||
YSI 27 |
| 516 |
| 532 |
| 5.59 | % | Nov-13 |
| ||
YSI 30 |
| 7,567 |
| 7,804 |
| 5.59 | % | Nov-13 |
| ||
YSI 11 |
| 2,486 |
| 2,548 |
| 5.87 | % | Dec-13 |
| ||
YSI 5 |
| 3,281 |
| 3,363 |
| 5.25 | % | Jan-14 |
| ||
YSI 28 |
| 1,598 |
| 1,638 |
| 5.59 | % | Feb-14 |
| ||
YSI 34 |
| 14,955 |
| — |
| 8.00 | % | Jun-14 |
| ||
YSI 37 |
| 2,244 |
| — |
| 7.25 | % | Aug-14 |
| ||
YSI 40 |
| 2,581 |
| — |
| 7.25 | % | Aug-14 |
| ||
YSI 42 |
| 3,263 |
| — |
| 6.88 | % | Aug-14 |
| ||
YSI 44 |
| 1,121 |
| — |
| 7.00 | % | Sep-14 |
| ||
YSI 41 |
| 3,976 |
| — |
| 6.60 | % | Sep-14 |
| ||
YSI 38 |
| 4,078 |
| — |
| 6.35 | % | Sep-14 |
| ||
YSI 45 |
| 5,527 |
| — |
| 6.75 | % | Oct-14 |
| ||
YSI 46 |
| 3,486 |
| — |
| 6.75 | % | Oct-14 |
| ||
YSI 43 |
| 2,994 |
| — |
| 6.50 | % | Nov-14 |
| ||
YSI 48 |
| 25,652 |
| — |
| 7.25 | % | Nov-14 |
| ||
YSI 39 |
| 3,991 |
| — |
| 6.50 | % | Nov-14 |
| ||
YSI 50 |
| 2,380 |
| — |
| 6.75 | % | Dec-14 |
| ||
YSI 10 |
| 4,166 |
| 4,237 |
| 5.87 | % | Jan-15 |
| ||
YSI 15 |
| 1,920 |
| 1,961 |
| 6.41 | % | Jan-15 |
| ||
YSI 20 |
| 64,258 |
| 65,953 |
| 5.97 | % | Nov-15 |
| ||
YSI 31 |
| 13,891 |
| — |
| 6.75 | % | Jun-19 | (a) | ||
YSI 35 |
| 4,499 |
| — |
| 6.90 | % | Jul-19 | (a) | ||
YSI 32 |
| 6,160 |
| — |
| 6.75 | % | Jul-19 | (a) | ||
YSI 33 |
| 11,570 |
| — |
| 6.42 | % | Jul-19 |
| ||
YSI 47 |
| 3,250 |
| — |
| 6.63 | % | Jan-20 | (a) | ||
Unamortized fair value adjustment |
| 231 |
| 694 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total mortgage loans and notes payable |
| $ | 569,026 |
| $ | 548,085 |
|
|
|
|
|
(a)These borrowings have a fixed interest rate for the first 5 years of their term, which then resets and remains constant over the final 5 years of the loan term.
During 2009, the Company entered into secured financings with 17 regional banks. The financings are summarized as follows (dollars in thousands):
|
| Carrying |
|
|
|
|
|
|
|
|
| |
|
| Value as of: |
|
|
|
|
|
|
|
|
| |
|
| December 31, |
|
|
| Properties |
| Effective |
| Maturity |
| |
Mortgage Loan |
| 2009 |
| State(s) |
| Encumbered |
| Interest Rate |
| Date |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
YSI 34 |
| $ | 14,955 |
| TX |
| 8 |
| 8.00 | % | Jun-14 |
|
YSI 37 |
| 2,244 |
| GA |
| 1 |
| 7.25 | % | Aug-14 |
| |
YSI 40 |
| 2,581 |
| TN |
| 1 |
| 7.25 | % | Aug-14 |
| |
YSI 42 |
| 3,263 |
| FL |
| 1 |
| 6.88 | % | Aug-14 |
| |
YSI 44 |
| 1,121 |
| FL |
| 1 |
| 7.00 | % | Sep-14 |
| |
YSI 41 |
| 3,976 |
| TN |
| 2 |
| 6.60 | % | Sep-14 |
| |
YSI 38 |
| 4,078 |
| TN |
| 3 |
| 6.35 | % | Sep-14 |
| |
YSI 45 |
| 5,527 |
| TN |
| 1 |
| 6.75 | % | Oct-14 |
| |
YSI 46 |
| 3,486 |
| IL |
| 1 |
| 6.75 | % | Oct-14 |
| |
YSI 43 |
| 2,994 |
| AZ |
| 1 |
| 6.50 | % | Nov-14 |
| |
YSI 48 |
| 25,652 |
| CA |
| 9 |
| 7.25 | % | Nov-14 |
| |
YSI 39 |
| 3,991 |
| FL |
| 1 |
| 6.50 | % | Nov-14 |
| |
YSI 50 |
| 2,380 |
| IL |
| 1 |
| 6.75 | % | Dec-14 |
| |
YSI 31 |
| 13,891 |
| NJ |
| 4 |
| 6.75 | % | Jun-19 |
| |
YSI 35 |
| 4,499 |
| VA |
| 2 |
| 6.90 | % | Jul-19 |
| |
YSI 32 |
| 6,160 |
| NY |
| 2 |
| 6.75 | % | Jul-19 |
| |
YSI 33 |
| 11,570 |
| D.C., FL & TX |
| 4 |
| 6.42 | % | Jul-19 |
| |
YSI 47 |
| 3,250 |
| MA |
| 1 |
| 6.63 | % | Jan-20 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total |
| $ | 115,618 |
|
|
|
|
|
|
|
|
|
As of December 31, 20062009 and 2005,2008, the Company’s mortgage loans payable were collateralizedsecured by certain of its self-storage facilities with net book values of approximately $795$776 million and $910$689 million, respectively.
The following table presented below represents the future principal payment requirements on the outstanding mortgage loans and notes payable at December 31, 2006:2009 (in thousands):
2010 |
| $ | 114,516 |
|
2011 |
| 90,541 |
| |
2012 |
| 163,817 |
| |
2013 |
| 26,238 |
| |
2014 |
| 91,091 |
| |
2015 and thereafter |
| 82,592 |
| |
Total mortgage payments |
| 568,795 |
| |
Plus: Unamortized fair value adjustment |
| 231 |
| |
Total mortgage indebtedness |
| $ | 569,026 |
|
The Company currently intends to fund its 2010 future principal payment requirements from cash provided by operating activities as well as additional borrowings under our secured credit facility ($250 million available as of December 31, 2009).
2007 |
| $ | 24,814 |
|
2008 |
| 16,950 |
| |
2009 |
| 94,365 |
| |
2010 |
| 112,435 |
| |
2011 |
| 88,114 |
| |
2012 and thereafter |
| 250,745 |
| |
Total mortgage payments |
| 587,423 |
| |
Plus: Unamortized debt premiums |
| 1,507 |
| |
Total mortgage indebtedness |
| $ | 588,930 |
|
7. MINORITYNONCONTROLLING INTERESTS
Operating
Variable Interests in Consolidated Real Estate Joint Ventures
On August 13, 2009, the Company, through a wholly-owned affiliate, formed a joint venture (“HART”) with an affiliate of Heitman, LLC (“Heitman”) to own and operate 22 self-storage facilities, which are located throughout the United States. Upon formation, Heitman contributed approximately $51 million of cash to a newly-formed limited partnership minority interests relateand the Company contributed certain unencumbered wholly-owned properties with an agreed upon value of approximately $102 million to such limited partnership. In exchange for its contribution of those properties, the Company received a cash distribution from HART of approximately $51 million and retained a 50 percent interest in HART. The Company is the managing partner of HART and the manager of the properties owned by HART, and receives a market rate management fee for its management services.
In December 2003, the FASB issued a pronouncement regarding variable interest entities. The Company determined HART is a variable interest entity as defined by the pronouncement, and that we are the primary beneficiary. The 50% interest that is owned by Heitman is reflected in noncontrolling interest in subsidiaries within permanent equity and separate from the Company’s equity on the consolidated balance sheet. Accordingly, the assets, liabilities and results of operations of HART are consolidated in our consolidated financial statements. At December 31, 2009, HART had total assets of $91.6 million and total liabilities of $1.9 million.
USIFB, LLP (“the Venture”) was formed to own, operate, acquire and develop self-storage facilities in England. The Company has a 97% interest in the Venture, and through a wholly-owned subsidiary and together with its joint venture partner, operations began at one facility in London, England during 2008. The Company has determined that the Venture is a variable interest entity as defined by the codification discussed above, and that the Company is the primary beneficiary. Accordingly, the assets, liabilities and results of operations of the Venture are consolidated in the Company’s consolidated financial statements. At December 31, 2009, the Venture had total assets of $7.8 million and total liabilities of $4.3 million and a mortgage loan of $3.8 million secured by assets with a net book value of $7.5 million. At December 31, 2009, the Venture’s creditors had no recourse to the general credit of the Company.
Operating Partnership Ownership
The Company has followed the FASB guidance regarding the classification and measurement of redeemable securities. Per this guidance, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity in the operating partnershipconsolidated balance sheets. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considered the guidance regarding accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock, to evaluate whether the Company controls the actions or events necessary to presume share settlement. The guidance also requires that noncontrolling interests be adjusted each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption value.
The consolidated results of the Company include results attributable to units of the Operating Partnership that are not owned by the Company, which at December 31, 2006, 2005 and 2004, amounted to approximately 8.3%, 8.4%4.9% and 2.9%,8.1% of all outstanding Partnership units as of December 31, 2009 and December 31, 2008, respectively.
In conjunction with These interests were issued in the formationform of Operating Partnership units and were a component of the consideration the Company paid to acquire certain former owners contributed facilities to the operating partnership and received units in the operating partnership concurrently with the closing of the IPO.self-storage facilities. Limited partners who acquired operating partnershipOperating Partnership units in the Formation Transactions have the right effective October 27, 2005, to require the operating partnershipOperating Partnership to redeem part or all of their operating partnershipOperating Partnership units for, cash or, at the Company’s option, an equivalent number of common shares of the Company or cash based upon the fair market value of an equivalent number of common shares for whichof the operatingCompany. However, the partnership units would have been redeemed ifagreement contains certain circumstances that could result in a settlement outside the control of the Company. Accordingly, consistent with the guidance, the Company had assumed and satisfiedwill record these noncontrolling interests outside of permanent equity in the operating partnership’s obligation by paying common shares. consolidated balance sheets. Net income or loss related to these noncontrolling interests is excluded from net income or loss in the consolidated statements of operations.
The marketfair value of the Company’s common shares when calculated for this purposethe purposes of unit redemption will be equal to the average of the closing trading price of the Company’s common shares on the New York Stock Exchange for the 10 trading
days before the day on whichdate the Company receivedreceives the redemption notice. Upon consummationAt December 31, 2009 and December 31, 2008, 4,809,636 units and 5,079,928 units were outstanding, respectively, and as of December 31, 2009, the IPO, the carryingcalculated aggregate redemption value of the net assets of the operating partnership was allocated to minority interests. Pursuant to three contribution agreements and three option exercises in 2005, entities owned byoutstanding Operating Partnership units based upon the Company’s former Chief Executive Officer and one of its former Trustees received an aggregate of 1,524,358 operating partnership units for six facilities with a net historical basis of $7.3share price was approximately $35.4 million.
In conjunction with the National Self Storage acquisition, National Self Storage received 3,674,497 operating partnership units. As provided in the partnership agreement of the operating partnership, these units are redeemable by the unitholders for cash or, at Based on the Company’s option, common shares, beginning one year after the dateevaluation of issuance (i.e., effective July 2006), on a one-for-one basis. The National Self Storage acquisition purchase agreement also included a provision which granted the sellers a special redemption right permitting the sellers, under certain circumstances, beginning one year after issuance of the units, to redeem a portion of their units by requiring the Company to purchase, and simultaneously transfer to them, real estate properties to be identified by them at a price equal to the fair value of units redeemed (the “Special Redemption Right”).
The units issued to National Self Storage were considered conditionally redeemable because they were redeemable at the option of the holder with no specified or determinable redemption date. The units had no preference to the Company’s other outstanding operating partnership units. Under the provisions of the Emerging Issues Task Force (“EITF”) Classification and Measurement of Redeemable Securities, D-98R (“EITF D-98R”), the Company classified these units as a separate minority interest line item (“Conditionally Redeemable Operating Partnership Units”) and elected the accretion method under EITF D-98R to record increases or decreases in the redemption value of such units (as of September 30, 2005) as an adjustment to retained earnings over the period fromredeemable noncontrolling interest, the date of issuance to the earliest redemption date. On October 25, 2005, the sellers in the National Self Storage transaction agreed to terminate the Special Redemption Right, effectiveCompany has reflected these interests at their carrying value as of July 15, 2005 (the first date on which National Self Storage facilities were acquired byDecember 31, 2009 and December 31, 2008 as carrying cost exceeded the operating partnership under the purchase agreement). Upon termination of the Special Redemption Right, the Company classified these units in minority interest. The amount of accretion recorded through October 25, 2005 was approximately $3.0 million.estimated redemption value.
F-27
8. RELATED PARTY TRANSACTIONS
Robert J. Amsdell, former Chief Executive Officer and Chairman of the Board of Trustees, retired from the Board effective as of February 13, 2007. Barry L. Amsdell submitted his letter of resignation from the Board on February 20, 2007. Effective as of February 19, 2007, the Amended and Restated Employment Agreement of Todd C. Amsdell, President of U-Store-It Development LLC, a subsidiary of the Company, was terminated.resigned.
Amsdell Settlement/Rising Tide Acquisition of Facilities
In connection with the IPO,On September 14, 2007, the Company entered into option agreements withsettled all pending state and federal court litigation involving the Company and the interests of Robert J. Amsdell, Barry L. Amsdell, Todd C. Amsdell and Kyle Amsdell, son of Robert and brother of Todd Amsdell (collectively, the “Amsdells”), and Rising Tide Development LLC, a company owned and controlled by Robert J. Amsdell and Barry L. Amsdell to acquire 18(“Rising Tide”). The Board of Trustees of the Company, along with the Corporate Governance and Nominating Committee, approved the terms of the settlement.
In addition, on September 14, 2007, the Operating Partnership purchased 14 self-storage facilities consisting, as of December 31, 2006, of 14 facilities owned byfrom Rising Tide Development, one facility which Rising(the “Rising Tide Development has the right to acquire from an unaffiliated third party and three facilities which have since been acquired by the Company pursuant to the exercise of its options. The options become exercisable with respect to each particular self-storage facility if and when that facility achieves a month-end occupancy level of 85% for three consecutive months. None of the remaining self-storage facilities that we have the option to purchase met the occupancy requirement as of December 31, 2006. The purchase price will be equal to the lower of (i) a price determined by multiplying in-place net operating income at the time of purchase by 12.5 and (ii) the fair market value of the option facility as determined by an appraisal process involving third party appraisers. The Company’s option to acquire these facilities will expire on October 27, 2008. The determination to purchase any of the option facilities will be made by the independent members of the Company’s Board of Trustees. During 2005, the Company exercised its option to purchase three of these facilitiesProperties”) for an aggregate purchase price of approximately $17.4$121 million consisting of an aggregate of $6.8 million in operating partnership unitspursuant to a purchase and $10.6 million in cash after a price reduction of $1.7 million of consideration in May 2005. The price reduction resulted from a discovery thatsale agreement. In connection with the calculationsettlement agreement and acquisition of the March14 self storage facilities, the Company considered the provisions of codification issued by the FASB on accounting for pre-existing relationships between the parties to a business combination, and determined that all consideration paid was allocable to the purchase priceof the storage facilities.
Pursuant to a Settlement Agreement and Mutual Release, dated August 6, 2007, (the “Settlement Agreement”) which was conditioned upon the acquisition of the 14 self-storage facilities from Rising Tide for $121 million, each of the parties to the agreement executed various agreements. A summary of the various agreements follows:
·Standstill Agreement. Robert J. Amsdell, Barry L. Amsdell and Todd C. Amsdell agreed they would not madecommence or participate in accordanceany proxy solicitation or initiate any shareholder proposal; take any action to convene a meeting of shareholders; or take any actions, including making any public or private proposal or announcement, that could result in an extraordinary corporate transaction relating to the Company. The standstill agreement terminated on April 20, 2008.
·First Amendment to Lease. The Operating Partnership and Amsdell and Amsdell, an entity owned by Robert and Barry Amsdell, entered into a First Amendment to Lease which modified certain terms of all of the lease agreements the Operating Partnership has with Amsdell and Amsdell for office space in Cleveland, Ohio. The First Amendment provided the terms specified inOperating Partnership the option agreement, which resulted inability to assign or sublease the overpayment. On May 14, 2005,office space previously used for its corporate office and certain operations. Separately, Amsdell and Amsdell consented to the CompanyOperating Partnership’s proposed sublease to an unrelated party of approximately 22,000 square feet of office space covered by the aforementioned leases.
·Termination of Option Agreement. The Operating Partnership and Rising Tide entered into an agreementOption Termination Agreement that terminated an Option Agreement dated October 27, 2004, by and between the Operating Partnership and Rising Tide. The Option Agreement provided the Operating Partnership with an option to acquire Rising Tide’s right, title and interest to 18 properties, including: the 14 Rising Tide DevelopmentProperties discussed above; three properties that the Operating Partnership acquired in 2005 pursuant to which 100,202 units in the operating partnership previously issued toexercise of its option; and one undeveloped property that Rising Tide Development were cancelledhas the option to acquire and $28,057 in cash (representing the distribution paid with respect to such units in April 2005)that was returned to the Company.
The Company, in accordance with a contract signed on April 3, 2006,not acquired nine self-storage facilities from Jernigan Property Group on July 27, 2006 for consideration of approximately $45.3 million. Our President and Chief Executive Officer, Dean Jernigan, serves as President of Jernigan Property Group and has a 20% beneficial interest in one self-storage facility partially owned by Jernigan Property Group and related companies and partnerships. Mr. Jernigan has agreed that he will not expand his interest, ownership or activity in the self-storage business. Given Mr. Jernigan’s appointment as a Trustee and the President and Chief Executive Officerpart of the Company on April 24, 2006, this transaction was subject to reviewpurchase and final approval by a majoritysale agreement.
·Termination of the independent membersProperty Management Agreement, and Marketing and Ancillary Services Agreement. Certain of the Company’s Board of Trustees. Mr. Jernigan has discontinued all involvement in the day-to-day management or operation of the Jernigan Property Group.
Management Services
The Predecessor’s self-storage facilities were operated by U-Store-It Mini Warehouse Co. (the “Property Manager”), which was affiliated through common ownership with Amsdell Partners, Inc., Highsubsidiaries and Rising Tide Limited Partnership, and Amsdell Holdings I, Inc. Pursuant to the relevant property management agreements, Acquiport/Amsdell I and Acquiport/Amsdell III paid the Property Manager monthly management fees of 5.35% of monthly gross rents (as defined in the related management agreements); USI II, LLC (“USI II”) paid the Property Manager a monthly management fee of 5.35% of USI II’s monthly effective gross income (as defined in the related management agreements); and the owners of the Lake Worth, FL, Lakewood, OH, and Vero Beach I, FL facilities paid the Property Manager monthly management fees of 6% of monthly gross receipts through October 21, 2004, and 5.35% thereafter (as defined in the related management agreements). Effective October 27, 2004 upon acquisition of the Property Manager, the management contract with U-Store-It Mini Warehouse Co. was terminated and a new management agreement was entered into with YSI Management, LLC. Beginning October 27, 2004 management fees relating to our wholly-owned subsidiaries are eliminated in consolidation.
Effective October 27, 2004, YSI Management LLC, a wholly-owned subsidiary of the operating partnership, entered into a management contract with Rising Tide Development to provideProperty Management Termination Agreement and a Marketing and Ancillary Services Termination Agreement. Under the Property Management Agreement, the
Company provided property management services tofor the option facilitiesRising Tide Properties for a fee equal to the greater of 5.35% of the gross revenues of each facilityproperty or $1,500 per facilityproperty per month. Under the Marketing and Ancillary Services Agreement, the Company provided limited marketing and other miscellaneous services for the Rising Tide properties. Management fees earned by YSI Management LLC, from Rising Tide Development, were approximately $0.5$0, $0 million and $0.4 million for the years ended December 31, 20062009, 2008 and 2005 and $0.1 million for the period from October 21, 2004 through December 31, 2004,2007, respectively, and are included in
other related party revenues. Accounts receivable from Rising Tide Development at December 31, 20062009, 2008 and 20052007 were approximately $0.6$0, $0 million and $0.4 million, respectively, and are included in due from related parties. No amounts were outstanding as of December 31, 2009. These amounts represent expenses paid on behalf of Rising Tide Development by YSI Management LLC and proceeds from the sale of ancillary items that will bewere reimbursed under standard business terms. In connection with the termination of the Property Management Agreement, expenses relating to property management will be prorated.
In 2004,
·Amendment of Employment and Non-Compete Agreements. As part of the Predecessor engaged, Amsdell Construction,Settlement Agreement, the Company entered into a company owned byModification of Noncompetition Agreement and Termination of Employment Agreement (each a “Modification of Noncompetition Agreement and Termination of Employment Agreement”) with each of Robert J. Amsdell and Todd C. Amsdell, and a Modification of Noncompetition Agreement (“Modification of Noncompetition Agreement”) with Barry L. Amsdell, to maintainwhich terminates and improve its self-storage facilities. The total payments incurred bymodifies specific provisions of the noncompetition agreement the Company has with each of them, dated October 27, 2004 (the “Original Noncompetition Agreements”). The Original Noncompetition Agreements restrict the ability of Robert J., Barry L. and Todd C. Amsdell to Amsdell Construction for the years ended December 31, 2006 and 2005 were approximately $42,000 and $304,000, respectively. The total payments incurred bycompete with the Company for one year and their ability to solicit employees of the Company for two years from the date of their termination of employment or resignation from service as a Trustee. Pursuant to these modification agreements, Todd C. Amsdell Constructionwill be able to compete with the Company, and Robert J. and Barry L. Amsdell will be able to (a) develop the one Rising Tide property that the Company did not acquire under the purchase and sale agreement and (b) compete with respect to any property identified as part of a Section 1031 “like-kind exchange” referenced in the purchase and sale agreement. Further, each Original Noncompetition Agreement was modified to allow each of them to hire, for any purpose, any employee or independent contractor who was terminated, has resigned or otherwise left the period from October 21, 2004 through December 31, 2004 were approximately $0.5 million. employment or other service of the Company or any of its affiliates on or prior to June 1, 2007.
The total amountModification and Noncompetition Agreement and Termination of payments incurred byEmployment Agreement with each of Robert J. Amsdell and Todd C. Amsdell also terminates the predecessoremployment agreements the Company had with each of them, effective as of February 13, 2007 with respect to Robert J. Amsdell Construction for the period from January 1, 2004 through October 20, 2004 was $2.2 million.and February 19, 2007 with respect to Todd C. Amsdell.
Corporate Office Leases
During 2005 and 2006, our operating partnershipPursuant to lease agreements that the Operating Partnership entered into various office lease agreements with Amsdell and Amsdell an entity owned by Robert J. Amsdell and Barry L. Amsdell. Pursuant to these lease agreements, during 20062007, we rented office space from Amsdell and Amsdell at The Parkview Building, a multi-tenant office building of approximately 40,000 square feet located at 6745 Engle Road, an office building of approximately 18,000 square feet located at 6751 Engle Road, and an office building of approximately 28,000 square feet located at 6779 Engle Road. Each of these properties is part of Airport Executive Park, a 50-acre office and flex development located in Cleveland, Ohio, which is owned by Amsdell and Amsdell. Our disinterestedindependent Trustees approved the terms of, and entry into, each of the office lease agreements by our operating partnership.the Operating Partnership. The table below shows the office space subject to these lease agreements and certain key terms,provisions, including the term of each lease agreement, the period for which our operating partnershipthe Operating Partnership may extend the term of each lease agreement, and the minimum and maximum rents payable per month during the term.
Office Space |
| Approximate |
| Term |
| Period of |
| Fixed Minimum |
| Fixed |
| ||
The Parkview Building — 6745 Engle Road; and 6751 Engle Road |
| 21,889 |
| 12/31/2014 |
| Five-year |
| $ | 25,673 |
| $ | 31,205 |
|
6745 Engle Road — Suite 100 |
| 2,212 |
| 12/31/2014 |
| Five-year |
| $ | 3,051 |
| $ | 3,709 |
|
6745 Engle Road — Suite 110 |
| 1,731 |
| 12/31/2014 |
| Five-year |
| $ | 2,387 |
| $ | 2,901 |
|
6751 Engle Road — Suites C and D |
| 3,000 |
| 12/31/2014 |
| Five-year |
| $ | 3,137 |
| $ | 3,771 |
|
6779 Engle Road — Suites G and H |
| 3,500 |
| 12/31/2008 |
| Five-year |
| $ | 3,079 |
| $ | 3,347 |
|
6745 Engle Road — Suite 120 |
| 1,588 |
| 4/30/2007 |
| Three-year |
| $ | 1,800 |
| $ | 1,900 |
|
6779 Engle Road — Suites I and J |
| 3,500 |
| (2 | ) | N/A |
| $ | 3,700 |
| N/A |
|
Office Space |
| Approximate |
| Term |
| Period of |
| Fixed Minimum |
| Fixed |
| ||
The Parkview Building — 6745 Engle Road; and 6751 Engle Road |
| 21,900 |
| 12/31/2014 |
| Five-year |
| $ | 25,673 |
| $ | 31,205 |
|
6745 Engle Road — Suite 100 |
| 2,212 |
| 12/31/2014 |
| Five-year |
| $ | 3,051 |
| $ | 3,709 |
|
6745 Engle Road — Suite 110 |
| 1,731 |
| 12/31/2014 |
| Five-year |
| $ | 2,387 |
| $ | 2,901 |
|
6751 Engle Road — Suites C and D |
| 3,000 |
| 12/31/2014 |
| Five-year |
| $ | 3,137 |
| $ | 3,771 |
|
6779 Engle Road — Suites G and H |
| 3,500 |
| 12/31/2008 |
| Five-year |
| $ | 3,079 |
| $ | 3,347 |
|
6745 Engle Road — Suite 120 |
| 1,600 |
| 4/30/2007 |
| Three-year |
| $ | 1,800 |
| $ | 1,900 |
|
6779 Engle Road — Suites I and J |
| 3,500 |
| (2 | ) | N/A |
| $ | 3,700 |
| N/A |
|
(1) Our operating partnership may extend the lease agreement beyond the termination date by the period set forth in this column at prevailing market rates upon the same terms and conditions contained in each of the lease agreements.
(2) In June 2006, our operating partnership2007, the Operating Partnership terminated this lease agreement which had a month-to-month term.
In addition to monthly rent, the office lease agreements provide that our operating partnershipOperating Partnership reimburse Amsdell and Amsdell for certain maintenance and improvements to the leased office space. The aggregate amount of payments by us to Amsdell and Amsdell under these lease agreements for the year ended December 31, 2006 was approximately $0.6 million.
The total amountamounts of lease payments incurred under the six office leases effective as of December 31, 2006 was approximately $0.5 million and $0.4 million forduring the years ended December 31, 20062009 and 2005. The total amount of lease payments incurred under former
leases for the period from October 21, 2004 through December 31, 2004 was2008 were approximately $40,000$0.3 million and is included in general and administrative — related party.$0.4 million, respectively.
Total future minimum rental payments under the related party lease agreements entered into as of December 31, 20062009 are as follows:
| Related Party |
| ||
|
| (Dollars in thousands) |
| |
|
|
|
| |
2007 |
| $ | 474 |
|
2008 |
| 468 |
| |
2009 |
| 453 |
| |
2010 |
| 453 |
| |
2011 |
| 475 |
| |
2012 and thereafter |
| 1,473 |
| |
|
| $ | 3,796 |
|
|
| Due to Related Party |
| Due from Subtenant |
| ||
|
| Amount |
| Amount |
| ||
|
| (in thousands) |
| ||||
|
|
|
|
|
| ||
2010 |
| $ | 453 |
| $ | 278 |
|
2011 |
| 475 |
| 278 |
| ||
2012 |
| 475 |
| 278 |
| ||
2013 |
| 499 |
| 278 |
| ||
2014 |
| 499 |
| 278 |
| ||
|
| $ | 2,401 |
| $ | 1,390 |
|
Aircraft Lease
The Company chartered an aircraft from Aqua Sun Investments, L.L.C. (“Aqua Sun”), a company owned by Robert J. Amsdell and Barry L. Amsdell. The Company was under contract pursuant to a timesharing agreement to reimburse Aqua Sun at the rate of $1,250 for each hour of use of the aircraft and the payment of certain expenses associated with the use of the aircraft. As described in the paragraph below, effective June 30, 2005 the timesharing agreement was terminated by mutual agreement of the parties thereto and was replaced on July 1, 2005 with a non-exclusive aircraft lease agreement with Aqua Sun (the “Aircraft Lease”). The Company’s disinterested Trustees approved the terms of, and the entry into, the non-exclusive aircraft lease agreement by the operating partnership.
Under the Aircraft Lease with Aqua Sun, the operating partnership may lease for corporate use from time to time an airplane owned by Aqua Sun. Under the terms of the Aircraft Lease, the operating partnership may lease use of the airplane owned by Aqua Sun at an hourly rate of $1,450 per flight hour. Aqua Sun is responsible for various costs associated with operation of the airplane, including insurance, storage and maintenance and repair, but the operating partnership is responsible for fuel costs and the costs of pilots and other cabin personnel required for its use of the airplane. The Aircraft Lease, which was effective as of July 1, 2005, had a one-year term and was terminated on June 30, 2006. The total amounts incurred for such aircraft charters described above by the Company for the years ended December 31, 2006 and 2005 were approximately $0.1 million and $0.4 million, respectively. The total amount incurred for aircraft charters by the Company for the period from October 21, 2004 through December 31, 2004 was approximately $0.1 million.
Other
During the fourth quarter of 2006, the Company engaged a consultant to assist us in establishing certain development protocols and processes. In connection with that assignment, ourthe outside consultant utilized the services of the son-in-law of Dean Jernigan’s son-in-law.Jernigan, President and Chief Executive Officer of the Company. Our payments for hisMr. Jernigan’s son-in-law’s services totaled $4,750$168 thousand in 2006.2008 and $149 thousand in 2007. Mr. Jernigan’s son-in-law was hired as a full-time employee of the Company on September 15, 2008.
During the third quarter of 2009, the Company entered into a relocation transaction with a member of management whereby the Company purchased the former residence of the member of management for $985,000 which is recorded as a component of other assets. The Company engaged Dunlevy Building Systems Inc., a company owned by John Dunlevy, a brother-in-law of Robert J. Amsdell and Barry L. Amsdell, for construction, zoning consultant and general contractor services at certain of its self-storage facilities. The total payments incurred byanticipates selling the Company to Dunlevy Building Systems Inc. for the years ended December 31, 2006 and 2005 were approximately $19,000 and $40,000, respectively.asset during 2010.
The Company engaged Deborah Dunlevy Designs, a company owned by Deborah Dunlevy, a sister of Robert J. Amsdell and Barry L. Amsdell, for interior design services at certain of its self-storage facilities and offices. The Company did not utilize Deborah Dunlevy Designs during the year ended 2006; however total payments incurred by the Company to Deborah Dunlevy Designs for the year ended December 31, 2005 was approximately $56,000.
Registration Rights
Robert J. Amsdell, Barry L. Amsdell, Todd C. Amsdell and the “Amsdell Entities” that acquired common shares or operating partnershipOperating Partnership units in the formation transactions which took place at the time of the IPO received certain registration rights. An aggregate of approximately 9.7 million common shares acquired in the formation transactions arewere subject to a registration rights agreement (including approximately 1.1 million shares issuable upon redemption of approximately 1.1 million operating partnershipOperating Partnership units issued in the formation transactions). Beginning in October 2005, Robert J. Amsdell, Barry L. Amsdell, Todd C. Amsdell and the Amsdell Entities became entitled to require the Company to register their shares for public sale subject to certain exceptions, limitations and conditions precedent.
In addition, Rising Tide Development received registration rights with respect to the operating partnershipOperating Partnership units it received in connection with the Company’s acquisition of three option facilities. An aggregate of approximately 0.4 million common shares (which shares are issuable upon redemption of approximately 0.4 million operating partnershipOperating Partnership units issued in connection with the Company’s option exercises) arewere subject to a registration rights agreement. Effective January 2006, Rising Tide Development became entitled to require
In March 2007, the Company filed a Registration Statement on Form S-3 to register approximately 0.2 millionsatisfy all of such common shares for public sale subject to certain exceptions, limitations and conditions precedent. Rising Tide Development became entitled to require the Company to register the remaining approximately 0.2 million common shares for public sale, subject to certain exceptions, limitations and conditions precedent, effective March 2006.abovementioned registration rights.
9. FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments, including cash and cash equivalents, marketable securities, accounts receivable and accounts payable approximates their respective book values at December 31, 20062009 and 2005.2008. The Company has fixed interest rate loans with a carrying value of $588.9$569.0 million and $669.3$548.1 million at December 31, 20062009 and 2005,2008, respectively. The estimated fair values
of these fixed rate loans were $530.7 million and $527.8 million at December 31, 2009 and 2008, respectively. The Company has variable interest rate loans with a carrying value of $200.0 million and $429.4 million at December 31, 2009 and 2008, respectively. The estimated fair values of these fixedthe variable interest rate loans were $569.6$200.0 million and $649.3$423.2 million at December 31, 20062009 and 2005,2008, respectively. These estimates are based on discounted cash flow analyses assuming market interest rates for comparable obligations at December 31, 20062009 and 2005.2008.
10. DISCONTINUED OPERATIONS
During 2005,
For the years ended December 31, 2009, 2008 and 2007, discontinued operations relates to 20 properties that the Company sold fourduring 2009 (one of its storage facilities located in Ohiowhich was held-for-sale at December 31, 2008), 23 properties that were acquired as partthe Company sold during 2008, and five properties that the Company sold during 2007 (see Note 3). Each of the Liberty Self-Stor Portfolio (See Note 4) acquisition for net proceedssales during 2009, 2008, and 2007 resulted in the recognition of $6.2 million. No facilities were solda gain, which in 2006 or 2004.the aggregate totaled $14.1 million, $19.7 million, and $2.5 million, respectively.
The results offollowing table summarizes the revenue and expense information for the properties classified as discontinued operations offor the storage facilities through the sale date have been presented in the following table. Interest expenseyears ended December 31, 2009, 2008 and related amortization of loan procurement costs have been attributed to the sold storage facilities as applicable based upon the transaction and included in discontinued operations.
The results of operations of the four storage facilities sold in 2005 were as follows:2007 (in thousands):
|
| Year Ended |
| |
|
| (in thousands) |
| |
|
|
|
| |
Revenues |
| $ | 546 |
|
Property operating expenses |
| (246 | ) | |
Depreciation |
| (168 | ) | |
Management fees to related party |
| (28 | ) | |
Interest expense |
| (72 | ) | |
Income from operations |
| 32 |
| |
Gain on sale of storage facilities |
| 179 |
| |
Income from discontinued operations |
| $ | 211 |
|
|
| For the year ended December 31, |
| |||||||
|
| 2009 |
| 2008 |
| 2007 |
| |||
|
|
|
|
|
|
|
| |||
REVENUES |
|
|
|
|
|
|
| |||
Rental income |
| $ | 7,512 |
| $ | 17,536 |
| $ | 21,206 |
|
Other property related income |
| 558 |
| 1,259 |
| 1,557 |
| |||
Total revenues |
| 8,070 |
| 18,795 |
| 22,763 |
| |||
OPERATING EXPENSES |
|
|
|
|
|
|
| |||
Property operating expenses |
| 2,787 |
| 6,876 |
| 9,009 |
| |||
Depreciation and amortization |
| 2,737 |
| 5,109 |
| 5,961 |
| |||
Total operating expenses |
| 5,524 |
| 11,985 |
| 14,970 |
| |||
OPERATING INCOME |
| 2,546 |
| 6,810 |
| 7,793 |
| |||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
| |||
Interest: |
|
|
|
|
|
|
| |||
Interest expense on loans |
| — |
| — |
| (189 | ) | |||
Loan procurement amortization expense |
| — |
| — |
| (3 | ) | |||
Interest income |
| — |
| — |
| 5 |
| |||
Total other expense |
| — |
| — |
| (187 | ) | |||
Income from discontinued operations |
| 2,546 |
| 6,810 |
| 7,606 |
| |||
Net gain on disposition of discontinued operations |
| 14,139 |
| 19,720 |
| 2,517 |
| |||
Income from discontinued operations |
| $ | 16,685 |
| $ | 26,530 |
| $ | 10,123 |
|
11. COMMITMENTS AND CONTINGENCIES
The Company has capital lease obligations for security camera systems with a cost of $2.6 million. These systems are included in equipment in the accompanying balance sheet and are being depreciated over five years. As of December 31, 2006, future minimum lease payments total $17,000.
The Company currently owns one self-storage facility subject to a ground lease and five self-storage facilities having small parcels of land that are subject to ground leases. The Company recorded rent expense of approximately $0.2 million for each of the years ended 2006 and 2005, and approximately $24,000 for the period from October 21, 2004 through December 31, 2004. The Predecessor recorded rent expense2009, 2008 and 2007, respectively.
Table of approximately $76,000 for the period from January 1, 2004 through October 20, 2004.Contents
Total future minimum rental payments under non-cancelable ground leases and related party office leases in effect as of December 31, 20062009 are as follows:
| Third Party |
| Related Party |
| |||
|
| (Dollars in thousands) |
| ||||
|
|
|
|
|
| ||
2007 |
| $ | 146 |
| $ | 474 |
|
2008 |
| 76 |
| 468 |
| ||
2009 |
| 50 |
| 453 |
| ||
2010 |
| 44 |
| 453 |
| ||
2011 |
| 44 |
| 475 |
| ||
2012 and thereafter |
| 155 |
| 1,473 |
| ||
|
| $ | 515 |
| $ | 3,796 |
|
|
| Third Party |
| Related Party |
| ||||
|
| (dollars in thousands) |
| ||||||
2010 |
| $ | 149 |
| $ | 453 |
| ||
2011 |
| 149 |
| 475 |
| ||||
2012 |
| 149 |
| 475 |
| ||||
2013 |
| 149 |
| 499 |
| ||||
2014 |
| 101 |
| 499 |
| ||||
|
| $ | 697 |
| $ | 2,401 |
| ||
Each of theThe Company and the Predecessor has been named as a defendant in a number of lawsuits in the ordinary course of business. In most instances, these claims are covered by the Company’s liability insurance coverage. Management believes that the ultimate settlement of the suits will not have a material adverse effect on the Company’s financial statements.
On March 15, 2007, the Company was notified by the Amsdell Companies that they believe YSI Management LLC, a wholly-owned subsidiary of the Company, is in breach of the Management Agreement dated October 27, 2004, between Rising Tide Development, LLC, an Amsdell Company, and YSI Management LLC, for failure to provide proper notice before incurring expenditures during 2006 in excess of certain thresholds above the budgeted mounts and for a delay in providing 2007 budgets. Management is currently evaluating these claims and the Amsdell Companies claim that the Company is not entitled to management fees during the period of breach.
12. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS
Interest
The Company’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its subsidiaries may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate that any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks.
The Company has entered into interest rate swap agreements that qualify and are designated as cash flow hedges designed to reduce the impact of interest rate changes on its variable rate debt. Therefore, the interest rate swaps are used to reducerecorded in the portion of total debt that is subject to variable interest rates. An interest rate swap requires the Company to pay an amount equal to a specific fixed rate of interest times a notional principal amount and entitles the Company to receive in return an amount equal to a variable rate of interest times the same notional amount. No other cash payments are made unless the contract is terminated prior to its maturity, in which case the contract would likely be settled for an amount equal to its fair value. The Company enters into contracts of this nature with major financial institutions to minimize counterparty credit risk. As of December 31, 2006, the Company had not entered into any contracts of this nature.
The Predecessor had an interest rate swap that was undesignated during 2004 and did not qualify for hedge accounting treatment; therefore, the swap was recordedconsolidated balance sheet at fair value and the related gains or losses were recordedare deferred in shareholders’ equity as Accumulated Other Comprehensive Loss. These deferred gains and losses are amortized into interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was immaterial for all periods presented.
The Company formally assesses, both at inception of the hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that a derivative is highly-effective as a hedge, it accounts for the derivative using hedge accounting, pursuant to which gains or losses inherent in the derivative do not impact the Company’s results of operations. If management determines that a derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company will discontinue hedge accounting prospectively and will reflect in its statement of operations. operations realized and unrealized gains and losses in respect of the derivative.
The amount recognizedCompany had an interest rate cap agreement that effectively limited the interest rate on $40 million of credit facility borrowings at 5.50% per annum through January 2008. All of the Company’s derivative financial instruments were expired by November 20, 2009. The following table is a three year comparison of the Company’s derivative financial instruments at December 31, 2009 and 2008, respectively (dollars in thousands):
Hedge |
|
|
| Notional |
|
|
|
|
|
|
| December 31, |
| |||||
Product |
| Hedge Type |
| Amount |
| Strike |
| Effective Date |
| Maturity |
| 2009 |
| 2008 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Swap |
| Cash flow |
| $ | 50,000 |
| 4.7725 | % | 8/24/2007 |
| 11/20/2009 |
| $ | — |
| $ | (1,683 | ) |
Swap |
| Cash flow |
| 25,000 |
| 4.7160 | % | 9/4/2007 |
| 11/20/2009 |
| — |
| (830 | ) | |||
Swap |
| Cash flow |
| 25,000 |
| 2.3400 | % | 3/28/2008 |
| 11/20/2009 |
| — |
| (326 | ) | |||
Swap |
| Cash flow |
| 200,000 |
| 2.7625 | % | 5/28/2008 |
| 11/20/2009 |
| — |
| (3,314 | ) | |||
|
|
|
|
|
|
|
|
|
|
|
| $ | — |
| $ | (6,153 | ) | |
13. FAIR VALUE MEASUREMENTS
As stated in Note 2 “Summary of Significant Accounting Policies” on January 1, 2008, the Company adopted the methods of fair value as described in authoritative guidance issued by the FASB, to value its financial assets and liabilities. As defined in the guidance, fair value is based on the price that would be received from the sale of an asset or paid to transfer a reductionliability in an orderly transaction between market participants at the measurement date. In order to interest expense due to changesincrease consistency and comparability in fair value was approximately $0.1 million duringmeasurements, the year endedguidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in its assessment of fair value.
There were no financial assets and liabilities carried at fair value as of December 31, 2004. The swap matured on August 16, 2004.2009. Financial assets and liabilities carried at fair value as of December 31, 2008 are classified in the table below in one of the three categories described above (dollars in thousands):
|
| Level 1 |
| Level 2 |
| Level 3 |
| |||
|
|
|
|
|
|
|
| |||
Interest Rate Swap Derivative Liabilities |
| $ | — |
| $ | 6,153 |
| $ | — |
|
Total liabilities at fair value |
| $ | — |
| $ | 6,153 |
| $ | — |
|
Financial assets and liabilities carried at fair value were classified as Level 2 inputs. For financial liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including LIBOR yield curves, bank price quotes for forward starting swaps, NYMEX futures pricing and common stock price quotes. Below is a summary of valuation techniques for Level 2 financial liabilities:
F-32·Interest rate swap derivative assets and liabilities — valued using LIBOR yield curves at the reporting date. Counterparties to these contracts are most often highly rated financial institutions none of which experienced any significant downgrades in 2009 that would reduce the amount owed by the Company.
13.14. SHARE-BASED COMPENSATION PLANS
On May 9, 2007, the Company’s shareholders approved an equity-based employee compensation plan, the 2007 Equity Incentive Plan (the “2007 Plan”). On October 19, 2004, the Company’s sole shareholder approved a share-based employee compensation plan, the 2004 Equity Incentive Plan (the “Plan”“2004 Plan” and collectively with the 2007 Plan, the “Plans”). The purpose of the Plan isPlans are to attract and retain highly qualified executive officers, Trustees and key employees and other
persons and to motivate such officers, trustees, key employees and other persons to serve the Company and its affiliates to expend maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan providesPlans provide for the grant of share options, share appreciation rights, restricted shares, share units, unrestricted shares, dividend equivalent rights and cash awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of annual or long-term performance goals. Share options granted under the PlanPlans may be non-qualified share options or incentive share options.
The Plan isPlans are administered by the Compensation Committee of the Company’s Board of Trustees (the “Compensation Committee”), which is appointed by the Board of Trustees. The Compensation Committee interprets the PlanPlans and determines the terms and provisions of option grants and share awards. A total of 3,900,000 and 3,000,000 common shares are reserved for issuance under the Plan.2007 Plan and 2004 Plan, respectively. The maximum number of common shares subjectunderlying equity awards that may be granted to an individual participant under the 2004 Plan during any calendar year is 400,000 for options or share appreciation rights or time-vestedand 100,000 for restricted shares that can be awardedor restricted share units, and 500,000 for options or share appreciation rights and 100,000 for restricted shares or restricted share units under the Plan to any person is 500,000 per calendar year.2007 Plan. The maximum number of common shares that can be awarded under the Plan to any person, other than pursuant to an option, share appreciation rights or time-vested restricted shares, is 250,000 per calendar year.year under the 2004 Plan. In addition, under the 2007 Plan, the maximum number of performance awards that may be granted to an executive officer is 100,000 and the maximum value of performance shares that can be settled in cash and that can be granted in any year is $1.5 million. To the extent that options expire unexercised or are terminated, surrendered or canceled, the options and share awards become available for future grants under the Plan,Plans, unless the Plan hasPlans have been terminated.
Under the Plan,Plans, the Compensation Committee determines the vesting schedule of each share award and option. At the closing of the IPO, the newly appointed non-employee members of the Board of Trustees were granted restricted share awards pursuant to the Plan as a one-time payment for joining the Board and as an advance for service to be provided for the remainder of 2004 and 2005. Concurrently with the closing of the IPO, the Company also granted options under the Plan to certain of its employees and executive officers to purchase an aggregate of 950,000 common shares. The options granted to executive officers vest ratably over a three-year period, one-third per year on each of the first three anniversaries of the grant date. The options granted to other employees of the Company vest evenly over a three year period, one-third per year on each of the third, fourth and fifth anniversaries of the grant date. The exercise price for options is equivalent to the fair market value of the underlying common shares at the grant date. The Compensation Committee also determines the term of each option, which shall not exceed 10 years from the grant date.
Share Options
The fair values for options granted in 20042009, 2008, and 20062007 were estimated at the time the options were granted using the Black-Scholes option-pricing model applying the following weighted average assumptions:
Assumptions: |
| 2009 |
| 2008 |
| 2007 |
| |||
Risk-free interest rate |
| 2.6 | % | 3.4 | % | 4.7 | % | |||
Expected dividend yield |
| 5.5 | % | 6.9 | % | 5.9 | % | |||
Volatility (a) |
| 46.49 | % | 27.3 | % | 21.2 | % | |||
Weighted average expected life of the options (b) |
| 9.8 years |
| 9.0 years |
| 9.4 years |
| |||
Weighted average fair value of options granted per share |
| $ | 1.02 |
| $ | 1.09 |
| $ | 2.40 |
|
Assumptions: |
| 2004 |
| 2006 |
| ||
Risk-free interest rate |
| 4.4 | % | 5.0 | % | ||
Expected dividend yield |
| 7.0 | % | 6.3 | % | ||
Volatility |
| 26.3 | % | 20.3 | % | ||
Weighted average expected life of the options |
| 6.5 years |
| 7.5 years |
| ||
Weighted average fair value of options granted |
| $ | 1.90 |
| $ | 2.10 |
|
(a) Expected volatility is based upon the level of volatility historically experienced.
(b) Expected life is based upon our expectations of stock option recipients’ expected exercise and termination patterns.
The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable.options. In addition, option-pricing models require the input of highly subjective assumptions, including the expected stock price volatility. The Company determined the volatility for the 2004 grants by comparing a 100-day period of volatility of industry competitors in June 2004. Volatility for the 20062007, 2008, and 2009 grants was based on the trading history of the Company’s shares.
In 2006, 20052009, 2008, and 2004,2007, the Company recognized compensation expense related to options issued to employees and executives of approximately $0.4$1.8 million, $0.5��$1.4 million and $0.1$0.9 million, respectively, which was recorded primarily in generalGeneral and administrative
expense. As of December 31, 2006,2009, the Company had approximately $1.8$2.4 million of unrecognized compensation cost related to unvested stock options that will be recorded over the next fourfive years.
The table below summarizes the option activity under the Plan for the years ended December 31, 20062009, 2008 and 2005, respectively, and the period from October 21, 2004 through December 31, 2004:2007:
|
|
|
|
|
| Weighted Average |
| |
|
| Number of Shares |
| Weighted Average |
| Remaining |
| |
|
| Under Option |
| Exercise Price |
| Contractual Term |
| |
Balance at January 1, 2004 |
| — |
| $ | — |
|
|
|
Options granted |
| 950,000 |
| 16.00 |
| 10.00 |
| |
Options canceled |
| 11,500 |
| 16.00 |
| — |
| |
Options exercised |
| — |
| — |
| — |
| |
Balance at December 31, 2004 |
| 938,500 |
| 16.00 |
| 9.83 |
| |
Options granted |
| — |
| — |
| — |
| |
Options canceled |
| 39,500 |
| 16.00 |
| — |
| |
Options exercised |
| — |
| — |
| — |
| |
Balance at December 31, 2005 |
| 899,000 |
| 16.00 |
| 8.83 |
| |
Options granted |
| 867,500 |
| 18.38 |
| 10.00 |
| |
Options canceled |
| (301,333 | ) | 16.00 |
| — |
| |
Options exercised |
| (186,667 | ) | 16.00 |
| 8.36 |
| |
Balance at December 31, 2006 |
| 1,278,500 |
| $ | 17.62 |
| 8.92 |
|
|
|
|
|
|
|
|
| |
Vested or expected to Vest at December 31, 2006 |
| 1,193,500 |
| $ | 17.62 |
| 8.92 |
|
Exercisable at December 31, 2006 |
| 133,333 |
| $ | 16.00 |
| 7.83 |
|
|
|
|
|
|
| Weighted Average |
| |
|
| Number of Shares |
| Weighted Average |
| Remaining |
| |
|
| Under Option |
| Exercise Price |
| Contractual Term |
| |
Balance at December 31, 2006 |
| 1,278,500 |
| $ | 17.62 |
| 8.92 |
|
Options granted |
| 960,271 |
| 19.82 |
| 9.24 |
| |
Options canceled |
| (322,000 | ) | 16.21 |
| — |
| |
Options exercised |
| — |
| — |
| — |
| |
Balance at December 31, 2007 |
| 1,916,771 |
| $ | 18.95 |
| 8.74 |
|
Options granted |
| 2,400,990 |
| 9.43 |
| 9.09 |
| |
Options canceled |
| (1,006,662 | ) | 13.08 |
| — |
| |
Options exercised |
| — |
| — |
| — |
| |
Balance at December 31, 2008 |
| 3,311,099 |
| $ | 13.84 |
| 8.42 |
|
Options granted |
| 1,456,881 |
| 3.75 |
| 9.09 |
| |
Options canceled |
| (221,676 | ) | 11.73 |
| — |
| |
Options exercised |
| — |
| — |
| — |
| |
Balance at December 31, 2009 |
| 4,546,304 |
| $ | 10.71 |
| 7.95 |
|
|
|
|
|
|
|
|
| |
Vested or expected to vest at December 31, 2009 |
| 4,546,304 |
| 10.71 |
| 7.95 |
| |
Exercisable at December 31, 2009 |
| 1,422,263 |
| 15.55 |
| 7.16 |
|
At December 31, 2006,2009, the aggregate intrinsic value of options outstanding, of options that vested or expected to vest and of options that were exercisable was $3.8 million, $3.5 million and $0.6 million, respectively.$8,100.
Restricted Shares
Throughout 2006, restricted shares were granted to certain employees.
The Company applies the fair value method of accounting for contingently issued shares. As such, each grant is recognized ratably over the related vesting period. Approximately 74,000402,000 restricted shares were issued during 20062009 for which the fair value of the restricted shares at their respective grant dates was approximately $1.3$1.5 million, which vest over three years. During 2008, approximately 259,000 restricted shares were issued for which the fair value of the restricted shares at their respective grant dates was approximately $1.8 million. As of December 31, 20062009 the Company had approximately $1.2$1.4 million of remaining unrecognized compensation costs related to 2006 restricted share issuances that will be recognized over the next fivetwo years.
On December 22, 2005, 163,677 restricted share units were granted to certain executives. The restricted share units were granted in the form of deferred share units, entitling the holders thereof to receive common shares at a future date. Holders of the deferred share units are not entitled to any of the rights of a shareholder with respect to the deferred share units unless and until the common shares relating to the deferred share unit award have been delivered to such holder. However, the holders of the deferred share units are entitled to receive dividend equivalent payments, upon the Company’s payment of a cash dividend on outstanding common shares.
The shares were equally divided between time-vesting shares and market-based shares with values of $20.62 and $13.82 per share, respectively. The fair value of the restricted share units at grant date was approximately $3.0 million. The Company used a Monte Carlo simulation analysis to estimate the fair value of the market-based shares. The time-vesting shares vest ratably over a five-year period, one-fifth per year on each of the first five anniversaries of the grant date. The market-based shares vest ratably over a five-year period, one-fifth per year on each of the first five anniversaries of the grant date if the average annual total shareholder return for the Company equals or exceeds ten percent. Additionally, any market-based shares that do not vest on a previous anniversary will vest on a subsequent anniversary date if the average annual total shareholder return from grant date equals or exceeds ten percent. Certain restricted share units awarded to the former Chief Executive Officer vest upon his retirement from the Company and since he reached the retirement age set forth in his award agreement prior to December 31, 2005, Robert J. Amsdell’s 72,745 restricted shares, valued at approximately $1.5 million, were recognized as share compensation expense in 2005. During 2006, certain unvested shares vested
early related to the termination of several executives under the terms of their respective employment agreements. Accordingly, the Company recognized the related compensation expense in 2006. As of December 31, 2006 the Company had no remaining unrecognized compensation cost related to the December 22, 2005 restricted share units.
The fair value for restricted share unitsshares granted in 20052008 was estimated at the time the units were granted. Awards that contain a market feature were valued using a Monte Carlo-pricing model applying the following weighted average assumptions:
Assumptions: |
| 2005 |
| |
Risk-free interest rate |
| 4.69 | % | |
Volatility of total annual return |
| 19.0 | % | |
Weighted average expected life of the |
| 5 years |
| |
Weighted average fair value of units |
| $ | 18.73 |
|
Asssumptions: |
| 2008 |
| |
Risk-free interest rate |
| 2.1 | % | |
Volatility of total annual return |
| 28.5 | % | |
Weighted average expected life of the units |
| 3 years |
| |
Weighted average fair value of units granted |
| $ | 4.14 |
|
The Monte Carlo pricing model was not used to value the 2009 restricted shares granted as no market conditions were present in these awards, as the fair value of the restricted share grants were equal to the stock price on the date of grant.
In May 2005, the Company implemented the Deferred Trustees Plan, a component of the Plan, upon the approval of the Company’s Board of Trustees. Pursuant to the terms of the Deferred Trustees Plan, each non-employee member of the Board of Trustees may elect to receive all of his annual cash retainers and meeting fees payable for service on the Board of Trustees or any committee of the Board of Trustees in the form of either all common shares or all deferred share units.
Pursuant to the terms of the Deferred Trustees Plan, under the equity incentive plan, certain Trustees elected to receive their Board of Trustee fees in 2005 and 2006 in the form of deferred share units. On December 31, 2006 an aggregate of
8,564 deferred share units were granted to those Trustees and were valued at $20.55 per share and on December 31, 2005 and aggregate of 3,876 deferred share units were granted and were valued at $21.05 per share. There was no similar activity in 2007, 2008 or 2009.
During 2004, there were an aggregate of 20,315 restricted shares granted to our Trustees. The restricted shares were granted on October 27, 2004 and were valued at a price of $16.00 per share. The value of the restricted shares was recognized as compensation expense over the vesting or service period during 2004 and 2005.
In 2006, 20052009, 2008 and 2004,2007, the Company recognized compensation expense related to restricted shares and restricted share units issued to employees and Trustees of approximately $0.7$1.6 million, $1.7$1.4 million and $2.4$1.1 million, respectively, andrespectively; these amounts were recorded in generalGeneral and administrative expense. Included in compensation expense for 2005 is approximately $1.5 million which represents the vested portion of the fair value of the restricted share units granted of 163,677 at a range of $13.82 to $20.62 per restricted share units to certain members of the Company’s management team. The restricted share compensation expense in 2004 represents the fair value of the restricted share units granted of 146,875 at $16.00 per restricted share unit to certain members of the Company’s management team at consummation of the IPO. The 2004 units did not have any vesting or forfeiture requirements.
The following table presents non-vested restricted share activity during 2006:2009:
| Number of Non- |
| |
|
| Vested |
|
|
| Shares |
|
Non-Vested at January 1, |
|
|
|
Granted |
|
|
|
Vested |
| ( | ) |
Forfeited |
| ( | ) |
Non-Vested at December 31, |
|
|
|
14.15. EARNINGS PER SHARE AND SHAREHOLDERS’ EQUITY
The following is a summary of the elements used in calculating basic and diluted earnings per share:
|
| Year Ended |
| Year Ended |
| For the Period |
|
| For the year ended December 31, |
| ||||||||||
|
| December 31, |
| December 31, |
| October 21, 2004 |
|
| 2009 |
| 2008 |
| 2007 |
| ||||||
|
| 2006 |
| 2005 |
| to December 31, 2004 |
|
| (Dollars and shares in thousands, except per share amounts) |
| ||||||||||
Loss from continuing operations |
| $ | (17,017 | ) | $ | (23,428 | ) | $ | (24,370 | ) | ||||||||||
Noncontrolling interests in the Operating Partnership |
| 928 |
| 1,839 |
| (14,417 | ) | |||||||||||||
Noncontrolling interest in subsidiaries |
| (665 | ) | — |
| — |
| |||||||||||||
Loss from continuing operations attributable to the Company’s common shareholders |
| $ | (16,754 | ) | $ | (21,589 | ) | $ | (38,787 | ) | ||||||||||
|
| (Dollars and shares in thousands, except per share amounts) |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
| |||||||||||||||||
Income (loss) from continuing operations |
| (8,551 | ) | 1,357 |
| (29,909 | ) | |||||||||||||
Income from discontinued operations |
| — |
| 211 |
| — |
| |||||||||||||
Net income (loss) attributable to common shares |
| $ | (8,551 | ) | $ | 1,568 |
| $ | (29,909 | ) | ||||||||||
Total discontinued operations |
| 16,685 |
| 26,530 |
| 10,123 |
| |||||||||||||
Noncontrolling interests in the Operating Partnership |
| (868 | ) | (2,149 | ) | 15,587 |
| |||||||||||||
Total discontinued operations attributable to the Company’s common shareholders |
| $ | 15,817 |
| $ | 24,381 |
| $ | 25,710 |
| ||||||||||
Net income (loss) attributable to the Company |
| $ | (937 | ) | $ | 2,792 |
| $ | (13,077 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Weighted-average shares outstanding |
| 57,287 |
| 42,120 |
| 37,478 |
|
| 70,988 |
| 57,621 |
| 57,497 |
| ||||||
Share options and restricted share units (1) |
| — |
| 83 |
| — |
|
| — |
| — |
| — |
| ||||||
|
| 57,287 |
| 42,203 |
| 37,478 |
| |||||||||||||
Weighted-average diluted shares outstanding (2) |
| 70,988 |
| 57,621 |
| 57,497 |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Income (loss) per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Continuing operations |
| $ | (0.15 | ) | $ | 0.04 |
| $ | (0.80 | ) |
| $ | (0.24 | ) | $ | (0.37 | ) | $ | (0.67 | ) |
Discontinued operations |
| — |
| — |
| — |
|
| 0.23 |
| 0.42 |
| 0.45 |
| ||||||
|
| $ | (0.15 | ) | $ | 0.04 |
| $ | (0.80 | ) | ||||||||||
Basic and diluted earnings (loss) per share |
| $ | (0.01 | ) | $ | 0.05 |
| $ | (0.22 | ) |
(1) For the yearyears ended December 31, 20062009, 2008 and the period October 21, 2004 through December 31, 2004,2007, the potentially dilutive shares of approximately 121,000547,000, 94,000, and 66,000,22,000 respectively, were not included in the earnings per share calculation as their effect is antidilutive.
(2) For the yearyears ended 2005,December 31, 2009, 2008 and 2007, the potentially dilutive shares of 45,467 were not included in the earningsCompany declared cash dividends per share calculation as the shares were based on meeting market conditions that had not occurred as of December 31, 2005.$0.10, $0.565 and $1.05, respectively
The operating partnership units and common shares have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the operating partnership. An operating partnership unit may be redeemed for cash, or at the Company’s option, common shares on a one-for-one basis beginning on October 27, 2005.basis. Outstanding minoritynoncontrolling interest units in the operating partnership were 5,198,8554,809,636, 5,079,928 and 5,079,928 as of December 31, 2006.2009, 2008 and 2007, respectively. There were 57,335,49092,654,979 common shares outstanding as of December 31, 2006. The outstanding2009.
Issuance of Common Shares
On August 19, 2009, the Company completed a public offering of 32.2 million common shares as of beneficial interest. The net proceeds from the offering of $161.9 million through December 31, 2006, exclude 85,185 of deferred share units granted2009 were used to certain members ofrepay existing indebtedness, including under the Company’s management team (see Note 13) which are treated as outstanding basicprior unsecured credit facility, and for general corporate purposes..
In addition to the August 19, 2009 public offering, the Company sold 2.5 million common shares of beneficial interest through its at-the-market equity plan during the first half of 2009, generating net proceeds of $9.7 million that were used for computational purposes of earnings per share.general corporate purposes.
15.16. INCOME TAXES
Deferred income taxes are established for temporary differences between financial reporting basis and tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if the Company believes that it is more likely than not that all or some portion of the deferred tax asset will not be realized. No valuation allowance was recorded at December 31, 20062009 or 2005.2008. The Company had a net deferred tax assetassets of $0.3$0.5 million and $0.1$0.5 million, which are included in other assets, as of December 31, 20062009 and 2005,2008, respectively. The Company believes it is more likely than not the deferred tax assetassets will be realized. The deferred tax asset primarily relates to past years’ tax net operating losses. These loss carryforwards will expire in 2026 through 2028 if not utilized by then.
|
| December 31, |
| ||||
|
| 2006 |
| 2005 |
| ||
|
| (in millions) |
| ||||
|
|
|
| ||||
Income tax provision |
|
|
|
|
| ||
Current U.S. federal |
| $ | - |
| $ | - |
|
Deferred U.S. federal |
| (0.2 | ) | - |
| ||
Income tax provision |
| $ | (0.2 | ) | $ | - |
|
|
|
|
|
|
| ||
Effective income tax rate |
|
|
|
|
| ||
Statutory federal income tax rate |
| 34 | % | 34 | % | ||
State and local income taxes |
| 3 | % | 9 | % | ||
Effective income tax rate |
| 37 | % | 43 | % |
|
| December 31, |
| ||||||||||
|
| 2006 |
| 2005 |
| ||||||||
|
| Assets |
| Liabilities |
| Assets |
| Liabilities |
| ||||
Deferred taxes share based compensation |
| $ | 0.8 |
| $ | 0.8 |
| $ | 1.6 |
| $ | 1.6 |
|
Other |
| 0.3 |
| — |
| 0.1 |
| — |
| ||||
Deferred taxes |
| $ | 1.1 |
| $ | 0.8 |
| $ | 1.7 |
| $ | 1.6 |
|
|
| For the year ended December 31, |
| |||||||
|
| 2009 |
| 2008 |
| 2007 |
| |||
|
| (dollars in thousands) |
| |||||||
Income tax provision |
|
|
|
|
|
|
| |||
Current: |
|
|
|
|
|
|
| |||
U.S. Federal |
| $ | — |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
| |||
Deferred: |
|
|
|
|
|
|
| |||
U.S. Federal |
| — |
| — |
| $ | (124 | ) | ||
Income tax provision |
| $ | — |
| $ | — |
| $ | (124 | ) |
|
|
|
|
|
|
|
| |||
Effective income tax rate |
|
|
|
|
|
|
| |||
Statutory federal income tax rate |
| 34 | % | 34 | % | 34 | % | |||
State and local income taxes |
| 4 | % | 4 | % | 4 | % | |||
Effective income tax rate |
| 38 | % | 38 | % | 38 | % |
|
| As of December 31, |
| ||||||||||||||||
|
| 2009 |
| 2008 |
| 2007 |
| ||||||||||||
|
| (dollars in thousands) |
| ||||||||||||||||
|
| Assets |
| Liabilities |
| Assets |
| Liabilities |
| Assets |
| Liabilities |
| ||||||
Deferred taxes |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Share based compensation |
| $ | 2,177 |
| $ | 1,933 |
| $ | 1,325 |
| $ | 1,185 |
| $ | 694 |
| $ | 626 |
|
Other |
| 258 |
| — |
| 324 |
| — |
| 430 |
| — |
| ||||||
Deferred taxes |
| $ | 2,435 |
| $ | 1,933 |
| $ | 1,649 |
| $ | 1,185 |
| $ | 1,124 |
| $ | 626 |
|
16.17. PRO FORMA FINANCIAL INFORMATION (UNAUDITED)
During 2005,2007, the Company acquired 14617 self-storage facilities for an aggregate purchase price of approximately $547.9$140.5 million and sold four of the facilities acquired in 2005 for approximately $6.2 million and consolidated four other facilities resulting in a net addition of 138 facilities in 2005. During 2006, the Company acquired 60 self-storage facilitiesfive properties for an aggregate purchase price of approximately $362.4$19.2 million.
In October 2005, During 2008, the Company completed a follow-on public offering, pursuant to which it soldacquired one self-storage facility for an aggregate of 19,665,000 common shares (including 2,565,000 shares pursuant to the exercise of the underwriters’ option) at an offeringpurchase price of $20.35 per share,approximately $13.3 million and sold 23 properties for gross proceeds of $400.2 million. The offering resulted in net proceeds to the Company, after deducting underwriting discount and commissions and expenses of the offering,an aggregate purchase price of approximately $378.7$62.0 million. There were no acquisitions during 2009.
The unaudited condensed consolidated pro forma financial information set forth below reflects adjustments to the Company’s historical financial data to give effect to each of the acquisitions dispositions and related financing activity (including the issuance of common shares) that occurred subsequent to January 1, 20052007 as if each had occurred on January 1, 2005.of each respective year. The unaudited pro forma information presented below does not purport to represent what the Company’s actual results of operations would have been for the periods indicated, nor does it purport to represent the Company’s future results of operations.
The following table summarizes, on a pro forma basis, our consolidated results of operations for the years ended December 31, 20062008 and 20052007 based on the assumptions described above:
| 2006 |
| 2005 |
| |||
|
| (unaudited) |
| ||||
|
| (in thousands, except per share data) |
| ||||
|
|
|
| ||||
Pro forma revenue |
| $ | 223,667 |
| $ | 217,095 |
|
Pro forma net loss |
| (11,809 | ) | (1,288 | ) | ||
Earnings (loss) per common share |
|
|
|
|
| ||
Basic — as reported |
| $ | (0.15 | ) | $ | 0.04 |
|
Basic — as pro forma |
| $ | (0.21 | ) | $ | (0.02 | ) |
Diluted — as reported |
| $ | (0.15 | ) | $ | 0.04 |
|
Diluted — as pro forma |
| $ | (0.21 | ) | $ | (0.02 | ) |
|
| 2008 |
| 2007 |
| ||
|
| (unaudited) |
| ||||
|
| (in thousands, except per share data) |
| ||||
|
|
|
|
|
| ||
Pro forma revenue |
| $ | 224,204 |
| $ | 215,722 |
|
Pro forma loss from continuing operations |
| (21,587 | ) | (33,633 | ) | ||
Loss per common share from continuing operations |
|
|
|
|
| ||
|
|
|
|
|
| ||
Basic and diluted — as reported |
| $ | (0.37 | ) | $ | (0.67 | ) |
Basic and diluted — as pro forma |
| (0.37 | ) | (0.58 | ) |
17.18. ASSET IMPAIRMENT AND INSURANCE RECOVERYRECOVERIES
As
During 2009, the Company recorded $0.1 million of impairment charges related to property damage associated with extraordinary events including fires. During 2008, the Company recorded $0.5 million of impairment charges related to property damage associated with Hurricane Ike and other extraordinary events including fires. During 2007 the Company recorded $0.4 million of impairment charges related to property damage incurred at six properties as a result of hurricanes that occurred during the third quarter of 2005, the Company incurred damage at certain of its self-storage facilities located in Alabama, Louisiana and Mississippi. Under the provisions of SFAS No. 144, “Accounting for the Impairment ofeither a fire or Disposal of Long-Lived Assets” (“SFAS No. 144”), the Company determined that there were indicators of impairment and accordingly tested the assets for recoverability. After an assessment of the damage sustained at the Waveland, Mississippi facility, the Company determined that a charge for impairment of approximately $2.3 million was required because the estimated undiscounted future cash flows did not support the carrying value of the assets. The Company expected that insurance proceeds from its comprehensive insurance for property damage would satisfy the entire loss incurred, and in 2005 appropriately recorded the impairment charge and an offsetting insurance recovery of $2.3 million, of which $0.5 million was received in October 2005. The related insurance receivable was included in other assets as of December 31, 2005, and the asset impairment charge and related insurance recovery were presented net in operating expenses for the year ended December 31, 2005. During 2006, insurance proceeds were sufficient to cover the insurance receivable and there is no balance remaining as of December 31, 2006.flood.
18.19. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
The following is a summary of quarterly financial information for the years ended December 31, 20062009 and 20052008 (in thousands, except per share data):
|
| Three months ended |
| ||||||||||
|
| March 31, |
| June 30, |
| September 30, |
| December 31, |
| ||||
|
| 2006 |
| 2006 |
| 2006 |
| 2006 |
| ||||
|
| (as restated, |
| (as restated, |
| (as restated, |
|
|
| ||||
|
| see below) |
| see below) |
| see below) |
|
|
| ||||
Total revenues |
| $ | 48,210 |
| $ | 53,390 |
| $ | 56,406 |
| $ | 55,106 |
|
Total operating expenses |
| $ | 39,175 |
| $ | 41,166 |
| $ | 46,090 |
| $ | 47,507 |
|
Net income (loss) |
| $ | (1,625 | ) | $ | 724 |
| $ | (1,962 | ) | $ | (5,688 | ) |
Basic and diluted earnings (loss) per share |
| $ | (0.03 | ) | $ | 0.01 |
| $ | (0.03 | ) | $ | (0.10 | ) |
|
| Three months ended |
| |||||||||||||||||||||||
|
| March 31, |
| June 30, |
| September 30, |
| December 31, |
| |||||||||||||||||
|
| 2005 |
| 2005 |
| 2005 |
| 2005 |
|
| Three months ended |
| ||||||||||||||
|
| (as restated) |
| (as restated) |
| (as restated) |
| (as restated) |
|
| March 31, |
| June 30, |
| September 30, |
| December 31, |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| 2009 |
| 2009 |
| 2009 |
| 2009 |
| ||||||||
Total revenues |
| $ | 29,587 |
| $ | 33,656 |
| $ | 41,175 |
| $ | 43,190 |
|
| $ | 54,933 |
| $ | 54,287 |
| $ | 54,727 |
| $ | 53,342 |
|
Total operating expenses |
| $ | 21,909 |
| $ | 24,054 |
| $ | 29,284 |
| $ | 38,729 |
|
| 46,914 |
| 48,304 |
| 46,517 |
| 45,611 |
| ||||
Net income (loss) |
| $ | 1,363 |
| $ | 1,952 |
| $ | 1,428 |
| $ | (3,175 | ) | |||||||||||||
Net income (loss) attributable to the Company |
| (2,109 | ) | (2,844 | ) | 6,818 |
| (2,802 | ) | |||||||||||||||||
Basic and diluted earnings (loss) per share |
| $ | 0.04 |
| $ | 0.05 |
| $ | 0.04 |
| $ | (0.06 | ) |
| (0.03 | ) | (0.05 | ) | 0.09 |
| (0.03 | ) |
|
| Three months ended |
| |||||||||||||||||||||||
|
| March 31, |
| June 30, |
| September 30, |
| December 31, |
|
| Three months ended |
| ||||||||||||||
|
| 2005 |
| 2005 |
| 2005 |
| 2005 |
|
| March 31, |
| June 30, |
| September 30, |
| December 31, |
| ||||||||
|
| (previously |
| (previously |
| (previously |
| (previously |
|
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| ||||||||
|
| reported) |
| reported) |
| reported) |
| reported) |
|
|
|
|
|
|
|
|
|
| ||||||||
Total revenues |
| $ | 29,715 |
| $ | 33,784 |
| $ | 41,303 |
| $ | 43,319 |
|
| $ | 54,820 |
| $ | 55,548 |
| $ | 57,166 |
| $ | 56,605 |
|
Net income (loss) |
| $ | 1,617 |
| $ | 2,204 |
| $ | 1,665 |
| $ | (2,709 | ) | |||||||||||||
Total operating expenses |
| 47,506 |
| 49,223 |
| 48,935 |
| 48,207 |
| |||||||||||||||||
Net income (loss) attributable to the Company |
| (3,984 | ) | 263 |
| 4,020 |
| 2,493 |
| |||||||||||||||||
Basic and diluted earnings (loss) per share |
| $ | 0.04 |
| $ | 0.06 |
| $ | 0.04 |
| $ | (0.05 | ) |
| (0.07 | ) | 0.01 |
| 0.07 |
| 0.04 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| Previously |
|
|
| As |
| |||
|
| Reported |
| Adjustment |
| Restated |
| |||
Restatements related to the Company |
| (in thousands) |
| |||||||
|
|
|
|
|
|
|
| |||
For the three months ended March 31, 2006 |
|
|
|
|
|
|
| |||
Statement of Operations |
|
|
|
|
|
|
| |||
Rental income |
| $ | 45,027 |
| $ | (33 | ) | $ | 44,994 |
|
Other — related party |
| $ | - |
| $ | 115 |
| $ | 115 |
|
Total revenues |
| $ | 48,128 |
| $ | 82 |
| $ | 48,210 |
|
Property operating expenses |
| $ | 18,860 |
| $ | 57 |
| $ | 18,917 |
|
Total operating expenses |
| $ | 39,118 |
| $ | 57 |
| $ | 39,175 |
|
Operating income |
| $ | 9,010 |
| $ | 25 |
| $ | 9,035 |
|
Loan procurement amortization expense |
| $ | (395 | ) | $ | (67 | ) | $ | (462 | ) |
Total other expense |
| $ | (10,742 | ) | $ | (67 | ) | $ | (10,809 | ) |
Loss before minority interest |
| $ | (1,732 | ) | $ | (42 | ) | $ | (1,774 | ) |
Minority interests |
| $ | 145 |
| $ | 4 |
| $ | 149 |
|
Net loss |
| $ | (1,587 | ) | $ | (38 | ) | $ | (1,625 | ) |
|
|
|
|
|
|
|
|
The summation of quarterly earnings per share amounts do not necessarily equal the full year amounts. The above information was updated to reclassify amounts to discontinued operations. See note 10.
|
| Previously |
|
|
| As |
| |||
|
| Reported |
| Adjustment |
| Restated |
| |||
Restatements related to the Company |
| (in thousands, except per share data) |
| |||||||
|
|
|
|
|
|
|
| |||
For the three months ended June 30, 2006 |
|
|
|
|
|
|
| |||
Statement of Operations |
|
|
|
|
|
|
| |||
Rental income |
| $ | 48,822 |
| $ | 852 |
| $ | 49,674 |
|
Other — related party |
| $ | — |
| $ | 98 |
| $ | 98 |
|
Total revenues |
| $ | 52,440 |
| $ | 950 |
| $ | 53,390 |
|
Property operating expenses |
| $ | 20,954 |
| $ | 61 |
| $ | 21,015 |
|
Total operating expenses |
| $ | 41,105 |
| $ | 61 |
| $ | 41,166 |
|
Operating income |
| $ | 11,335 |
| $ | 889 |
| $ | 12,224 |
|
Loan procurement amortization expense |
| $ | (447 | ) | $ | (67 | ) | $ | (514 | ) |
Total other expense |
| $ | (11,367 | ) | $ | (67 | ) | $ | (11,434 | ) |
Income (loss) before minority interests |
| $ | (32 | ) | $ | 822 |
| $ | 790 |
|
Minority interests |
| $ | 2 |
| $ | (68 | ) | $ | (66 | ) |
Net income (loss) |
| $ | (30 | ) | $ | 754 |
| $ | 724 |
|
Diluted earnings (loss) per share |
| $ | (0.00 | ) | $ | 0.01 |
| $ | 0.01 |
|
|
| Previously |
|
|
| As |
| |||
|
| Reported |
| Adjustment |
| Restated |
| |||
Restatements related to the Company |
| (in thousands) |
| |||||||
|
|
|
| |||||||
For the three months ended September 30, 2006 |
|
|
|
|
|
|
| |||
Statement of Operations |
|
|
|
|
|
|
| |||
Rental income |
| $ | 52,562 |
| $ | (126 | ) | $ | 52,436 |
|
Other — related party |
| $ | — |
| $ | 126 |
| $ | 126 |
|
Property operating expenses |
| $ | 21,978 |
| $ | 23 |
| $ | 22,001 |
|
Total operating expenses |
| $ | 46,067 |
| $ | 23 |
| $ | 46,090 |
|
Operating income |
| $ | 10,339 |
| $ | (23 | ) | $ | 10,316 |
|
Loss before minority interests |
| $ | (2,117 | ) | $ | (23 | ) | $ | (2,140 | ) |
Minority interests |
| $ | 176 |
| $ | 2 |
| $ | 178 |
|
Net loss |
| $ | (1,941 | ) | $ | (21 | ) | $ | (1,962 | ) |
|
|
|
|
|
|
|
|
19. SUBSEQUENT EVENTS20. LEASE ABANDONMENT CHARGE
In January 2007, through two separate transactions, the Company completed the acquisition of three self-storage facilities for an aggregate purchase price of $19.4 million and funded the purchases with borrowings under the revolving credit facility and from working capital.
F-40In August 2007, the Company abandoned certain office space in Cleveland, OH that was previously used for its corporate offices. The related leases have expiration dates ranging from December 31, 2009 through December 31, 2014. Upon vacating the space, the Company entered into a sub-lease agreement with a sub-tenant to lease the majority of the space for the duration of the term.
As a result of this exit activity, the Company recognized a “Lease abandonment charge” of $1.3 million during 2007. The charge is comprised of approximately $0.8 million of costs that represent the present value of the net cash flows associated with leases and the sub-lease agreement (“Contract Termination Costs”) and approximately $0.5 million of costs associated with the write-off of certain assets related to the abandoned space (“Other Associated Costs”). The Contract Termination Costs of $0.8 million are presented as “Accounts payable and accrued rent” and the Other Associated Costs of $0.5 million were accounted for as a reduction of “Storage facilities.” The Company will amortize the Contract Termination Costs against rental expense over the remaining life of the respective leases.
21. COMPREHENSIVE INCOME (LOSS)
|
| Year Ended December 31, |
| |||||||
|
| 2009 |
| 2008 |
| 2007 |
| |||
|
| (in thousands) |
| |||||||
NET INCOME (LOSS) |
| $ | (332 | ) | $ | 3,102 |
| $ | (14,247 | ) |
Other comprehensive income (loss): |
|
|
|
|
|
|
| |||
Unrealized gain (loss) on derivative financial instruments |
| 6,153 |
| (4,608 | ) | (1,545 | ) | |||
Unrealized gain (loss) on foreign currency translation |
| 553 |
| (1,281 | ) | (119 | ) | |||
COMPREHENSIVE INCOME (LOSS) |
| $ | 6,374 |
| $ | (2,787 | ) | $ | (15,911 | ) |
22. SUBSEQUENT EVENT
On February 11, 2010, the Company repaid the YSI 1 mortgage loan of approximately $83.3 million with available cash.
U-STORE-IT
SCHEDULE III
REAL ESTATE AND RELATED DEPRECIATION
DECEMBER 31, 20062009
(in thousands)
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
| ||||||
|
|
|
| Initial Cost |
|
|
| at December 31, 2006 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Mobile I, AL |
|
|
| 149 |
| 1,429 |
| 604 |
| 225 |
| 1,956 |
| 2,182 |
| 560 |
| 1997 |
|
Mobile II, AL |
| (A) |
| 226 |
| 2,524 |
| 815 |
| 301 |
| 3,264 |
| 3,565 |
| 1,127 |
| 1997 |
|
Mobile III, AL |
|
|
| 167 |
| 1,849 |
| 269 |
| 237 |
| 2,048 |
| 2,285 |
| 517 |
| 1998 |
|
Chandler, AZ |
|
|
| 327 |
| 1,257 |
| 202 |
| 327 |
| 1,458 |
| 1,786 |
| 114 |
| 2005 |
|
Glendale, AZ |
|
|
| 201 |
| 2,265 |
| 829 |
| 418 |
| 2,877 |
| 3,295 |
| 639 |
| 1998 |
|
Green Valley, AZ |
| (B) |
| 298 |
| 1,153 |
| 80 |
| 298 |
| 1,232 |
| 1,530 |
| 94 |
| 2005 |
|
Mesa, AZ |
|
|
| 920 |
| 2,739 |
| 64 |
| 921 |
| 2,802 |
| 3,723 |
| 152 |
| 2006 |
|
Mesa, AZ |
|
|
| 731 |
| 2,176 |
| 87 |
| 731 |
| 2,264 |
| 2,995 |
| 123 |
| 2006 |
|
Mesa, AZ |
|
|
| 706 |
| 2,101 |
| 79 |
| 706 |
| 2,180 |
| 2,886 |
| 119 |
| 2006 |
|
Phoenix, AZ |
|
|
| 1,134 |
| 3,376 |
| 104 |
| 1,135 |
| 3,480 |
| 4,615 |
| 188 |
| 2006 |
|
Phoenix, AZ |
|
|
| 756 |
| 2,251 |
| 103 |
| 756 |
| 2,354 |
| 3,111 |
| 126 |
| 2006 |
|
Scottsdale, AZ |
|
|
| 443 |
| 4,879 |
| 1,533 |
| 883 |
| 5,972 |
| 6,855 |
| 1,317 |
| 1998 |
|
Tempe, AZ |
| (A) |
| 749 |
| 2,159 |
| 61 |
| 749 |
| 2,220 |
| 2,970 |
| 170 |
| 2005 |
|
Tucson I, AZ |
|
|
| 188 |
| 2,078 |
| 743 |
| 384 |
| 2,625 |
| 3,009 |
| 582 |
| 1998 |
|
Tucson II, AZ |
|
|
| 188 |
| 2,078 |
| 824 |
| 391 |
| 2,699 |
| 3,090 |
| 579 |
| 1998 |
|
Tucson, AZ |
| (C) |
| 711 |
| 2,736 |
| 45 |
| 711 |
| 2,781 |
| 3,492 |
| 219 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 532 |
| 2,048 |
| 84 |
| 533 |
| 2,132 |
| 2,665 |
| 169 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 674 |
| 2,595 |
| 103 |
| 675 |
| 2,697 |
| 3,372 |
| 213 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 515 |
| 1,980 |
| 110 |
| 515 |
| 2,090 |
| 2,605 |
| 165 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 440 |
| 1,692 |
| 115 |
| 440 |
| 1,807 |
| 2,247 |
| 143 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 670 |
| 2,576 |
| 109 |
| 670 |
| 2,684 |
| 3,354 |
| 211 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 589 |
| 2,265 |
| 66 |
| 589 |
| 2,331 |
| 2,920 |
| 185 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 724 |
| 2,786 |
| 103 |
| 725 |
| 2,889 |
| 3,614 |
| 225 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 424 |
| 1,633 |
| 45 |
| 425 |
| 1,678 |
| 2,103 |
| 135 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 439 |
| 1,689 |
| 65 |
| 439 |
| 1,753 |
| 2,193 |
| 139 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 671 |
| 2,582 |
| 133 |
| 672 |
| 2,714 |
| 3,386 |
| 210 |
| 2005 |
|
Tucson, AZ |
| (C) |
| 587 |
| 2,258 |
| 84 |
| 587 |
| 2,341 |
| 2,929 |
| 183 |
| 2005 |
|
Tucson, AZ |
| 1,217 |
| 540 |
| 2,076 |
| 130 |
| 540 |
| 2,206 |
| 2,746 |
| 170 |
| 2005 |
|
Tucson, AZ |
| 1,322 |
| 707 |
| 2,721 |
| 55 |
| 708 |
| 2,775 |
| 3,483 |
| 220 |
| 2005 |
|
Apple Valley I, CA |
| (D) |
| 140 |
| 1,570 |
| 1,437 |
| 476 |
| 2,670 |
| 3,147 |
| 557 |
| 1997 |
|
Apple Valley II, CA |
| (E) |
| 160 |
| 1,787 |
| 1,119 |
| 431 |
| 2,635 |
| 3,066 |
| 596 |
| 1997 |
|
Benicia, CA |
|
|
| 2,392 |
| 7,028 |
| 42 |
| 2,392 |
| 7,070 |
| 9,463 |
| 437 |
| 2005 |
|
Bloomington I, CA |
|
|
| 42 |
| 463 |
| 388 |
| 100 |
| 793 |
| 893 |
| 196 |
| 1997 |
|
Bloomington II, CA |
|
|
| 54 |
| 604 |
| 412 |
| 144 |
| 926 |
| 1,070 |
| 205 |
| 1997 |
|
Cathedral City, CA |
|
|
| 2,194 |
| 10,046 |
| 42 |
| 2,195 |
| 10,087 |
| 12,282 |
| 496 |
| 2006 |
|
Citrus Heights, CA |
| (C) |
| 1,633 |
| 4,793 |
| 42 |
| 1,634 |
| 4,834 |
| 6,468 |
| 392 |
| 2005 |
|
Diamond Bar, CA |
|
|
| 2,522 |
| 7,404 |
| 133 |
| 2,524 |
| 7,535 |
| 10,059 |
| 607 |
| 2005 |
|
Fallbrook, CA |
| (F) |
| 133 |
| 1,492 |
| 1,398 |
| 432 |
| 2,590 |
| 3,023 |
| 523 |
| 1997 |
|
Hemet, CA |
| (D) |
| 125 |
| 1,396 |
| 1,248 |
| 417 |
| 2,353 |
| 2,769 |
| 491 |
| 1997 |
|
Highland, CA |
| (D) |
| 215 |
| 2,407 |
| 1,783 |
| 582 |
| 3,823 |
| 4,405 |
| 857 |
| 1997 |
|
Highland, CA |
|
|
| 1,277 |
| 5,847 |
| 51 |
| 1,277 |
| 5,898 |
| 7,175 |
| 290 |
| 2006 |
|
Lancaster, CA |
| (E) |
| 390 |
| 2,247 |
| 839 |
| 556 |
| 2,920 |
| 3,476 |
| 636 |
| 2001 |
|
Long Beach, CA |
|
|
| 3,138 |
| 14,368 |
| 145 |
| 3,138 |
| 14,513 |
| 17,652 |
| 712 |
| 2006 |
|
Murrieta, CA |
|
|
| 1,883 |
| 5,532 |
| 144 |
| 1,903 |
| 5,656 |
| 7,559 |
| 350 |
| 2005 |
|
North Highlands, CA |
| (C) |
| 868 |
| 2,546 |
| 42 |
| 868 |
| 2,588 |
| 3,456 |
| 210 |
| 2005 |
|
Ontario, CA |
|
|
| 292 |
| 3,289 |
| 1,747 |
| 688 |
| 4,640 |
| 5,328 |
| 930 |
| 1998 |
|
Orangevale, CA |
| (C) |
| 1,423 |
| 4,175 |
| 41 |
| 1,423 |
| 4,216 |
| 5,639 |
| 343 |
| 2005 |
|
Palm Springs, CA |
|
|
| 1,565 |
| 7,164 |
| 82 |
| 1,566 |
| 7,245 |
| 8,811 |
| 355 |
| 2006 |
|
Palm Springs, CA |
|
|
| 2,131 |
| 9,758 |
| 72 |
| 2,132 |
| 9,829 |
| 11,961 |
| 483 |
| 2006 |
|
|
|
|
|
|
| Initial Cost |
|
|
| Gross Carrying Amount |
|
|
|
|
| ||||||
Description |
| Square Footage |
| Encumbrances |
| Land |
| Building |
| Costs |
| Land |
| Building and |
| Total |
| Accumulated |
| Year Acquired / |
|
Mobile, AL |
| 128,951 |
| (A) |
| 226 |
| 2,524 |
| 987 |
| 301 |
| 3,436 |
| 3,737 |
| 1,155 |
| 1997 |
|
Chandler, AZ |
| 47,520 |
|
|
| 327 |
| 1,257 |
| 272 |
| 327 |
| 1,529 |
| 1,856 |
| 387 |
| 2005 |
|
Glendale, AZ |
| 56,850 |
| (T) |
| 201 |
| 2,265 |
| 926 |
| 418 |
| 2,974 |
| 3,392 |
| 915 |
| 1998 |
|
Green Valley, AZ |
| 25,050 |
| (B) |
| 298 |
| 1,153 |
| 162 |
| 298 |
| 1,314 |
| 1,612 |
| 326 |
| 2005 |
|
Mesa I, AZ |
| 52,375 |
|
|
| 920 |
| 2,739 |
| 154 |
| 921 |
| 2,892 |
| 3,813 |
| 678 |
| 2006 |
|
Mesa II, AZ |
| 45,145 |
|
|
| 731 |
| 2,176 |
| 198 |
| 731 |
| 2,374 |
| 3,105 |
| 564 |
| 2006 |
|
Mesa III, AZ |
| 58,264 |
|
|
| 706 |
| 2,101 |
| 177 |
| 706 |
| 2,278 |
| 2,984 |
| 544 |
| 2006 |
|
Phoenix I, AZ |
| 100,762 |
|
|
| 1,134 |
| 3,376 |
| 286 |
| 1,135 |
| 3,661 |
| 4,796 |
| 866 |
| 2006 |
|
Phoenix II, AZ |
| 45,270 |
| (T) |
| 756 |
| 2,251 |
| 240 |
| 756 |
| 2,492 |
| 3,248 |
| 575 |
| 2006 |
|
Scottsdale, AZ |
| 80,925 |
| (T) |
| 443 |
| 4,879 |
| 1,635 |
| 883 |
| 6,074 |
| 6,957 |
| 1,850 |
| 1998 |
|
Tempe, AZ |
| 53,890 |
| (A) |
| 749 |
| 2,159 |
| 197 |
| 749 |
| 2,356 |
| 3,106 |
| 542 |
| 2005 |
|
Tucson I, AZ |
| 59,350 |
| (T) |
| 188 |
| 2,078 |
| 901 |
| 384 |
| 2,784 |
| 3,167 |
| 836 |
| 1998 |
|
Tucson II, AZ |
| 43,950 |
| 2,994 |
| 188 |
| 2,078 |
| 880 |
| 391 |
| 2,755 |
| 3,146 |
| 822 |
| 1998 |
|
Tucson III, AZ |
| 49,822 |
| (C) |
| 532 |
| 2,048 |
| 123 |
| 533 |
| 2,171 |
| 2,703 |
| 542 |
| 2005 |
|
Tucson IV, AZ |
| 48,040 |
| (C) |
| 674 |
| 2,595 |
| 171 |
| 675 |
| 2,765 |
| 3,440 |
| 686 |
| 2005 |
|
Tucson V, AZ |
| 45,234 |
| (C) |
| 515 |
| 1,980 |
| 196 |
| 515 |
| 2,176 |
| 2,691 |
| 540 |
| 2005 |
|
Tucson VI, AZ |
| 40,841 |
| (C) |
| 440 |
| 1,692 |
| 166 |
| 440 |
| 1,857 |
| 2,297 |
| 471 |
| 2005 |
|
Tucson VII, AZ |
| 52,688 |
| (C) |
| 670 |
| 2,576 |
| 219 |
| 670 |
| 2,795 |
| 3,465 |
| 689 |
| 2005 |
|
Tucson VIII, AZ |
| 46,650 |
| (C) |
| 589 |
| 2,265 |
| 115 |
| 589 |
| 2,380 |
| 2,969 |
| 588 |
| 2005 |
|
Tucson IX, AZ |
| 67,656 |
| (C) |
| 724 |
| 2,786 |
| 247 |
| 725 |
| 3,033 |
| 3,757 |
| 744 |
| 2005 |
|
Tucson X, AZ |
| 46,350 |
| (C) |
| 424 |
| 1,633 |
| 192 |
| 425 |
| 1,824 |
| 2,249 |
| 448 |
| 2005 |
|
Tucson XI, AZ |
| 42,700 |
| (C) |
| 439 |
| 1,689 |
| 303 |
| 439 |
| 1,991 |
| 2,431 |
| 466 |
| 2005 |
|
Tucson XII, AZ |
| 42,325 |
| (C) |
| 671 |
| 2,582 |
| 185 |
| 672 |
| 2,767 |
| 3,439 |
| 675 |
| 2005 |
|
Tucson XIII, AZ |
| 45,792 |
| (C) |
| 587 |
| 2,258 |
| 158 |
| 587 |
| 2,416 |
| 3,003 |
| 594 |
| 2005 |
|
Tucson XIV, AZ |
| 49,170 |
| (T) |
| 707 |
| 2,721 |
| 209 |
| 708 |
| 2,930 |
| 3,637 |
| 716 |
| 2005 |
|
Apple Valley I, CA |
| 73,250 |
| (D) |
| 140 |
| 1,570 |
| 1,544 |
| 476 |
| 2,778 |
| 3,254 |
| 825 |
| 1997 |
|
Apple Valley II, CA |
| 61,555 |
| (E) |
| 160 |
| 1,787 |
| 1,158 |
| 431 |
| 2,675 |
| 3,105 |
| 828 |
| 1997 |
|
Benicia, CA |
| 74,770 |
| (T) |
| 2,392 |
| 7,028 |
| 164 |
| 2,392 |
| 7,192 |
| 9,585 |
| 1,684 |
| 2005 |
|
Bloomington I, CA |
| 28,425 |
|
|
| 42 |
| 463 |
| 504 |
| 100 |
| 910 |
| 1,009 |
| 267 |
| 1997 |
|
Bloomington II, CA |
| 25,860 |
|
|
| 54 |
| 604 |
| 466 |
| 144 |
| 980 |
| 1,124 |
| 293 |
| 1997 |
|
Cathedral City, CA |
| 109,745 |
| (T) |
| 2,194 |
| 10,046 |
| 203 |
| 2,195 |
| 10,248 |
| 12,443 |
| 3,105 |
| 2006 |
|
Citrus Heights, CA |
| 75,620 |
| (C) |
| 1,633 |
| 4,793 |
| 191 |
| 1,634 |
| 4,983 |
| 6,617 |
| 1,257 |
| 2005 |
|
Diamond Bar, CA |
| 103,034 |
| (T) |
| 2,522 |
| 7,404 |
| 236 |
| 2,524 |
| 7,638 |
| 10,162 |
| 1,925 |
| 2005 |
|
Escondido, CA |
| 142,970 |
| (S) |
| 3,040 |
| 11,804 |
| (755 | ) | 3,040 |
| 11,049 |
| 14,089 |
| 1,397 |
| 2007 |
|
Fallbrook, CA |
| 46,370 |
| (F) |
| 133 |
| 1,492 |
| 1,470 |
| 432 |
| 2,663 |
| 3,095 |
| 777 |
| 1997 |
|
Hemet, CA |
| 66,040 |
| (D) |
| 125 |
| 1,396 |
| 1,309 |
| 417 |
| 2,413 |
| 2,830 |
| 717 |
| 1997 |
|
Highland I, CA |
| 76,765 |
| (D) |
| 215 |
| 2,407 |
| 1,966 |
| 582 |
| 4,006 |
| 4,588 |
| 1,234 |
| 1997 |
|
Highland II, CA |
| 62,257 |
| (T) |
| 1,277 |
| 5,847 |
| 248 |
| 1,277 |
| 6,095 |
| 7,372 |
| 1,279 |
| 2006 |
|
Lancaster, CA |
| 60,665 |
| (E) |
| 390 |
| 2,247 |
| 684 |
| 556 |
| 2,765 |
| 3,321 |
| 659 |
| 2001 |
|
Long Beach, CA |
| 124,363 |
| (T) |
| 3,138 |
| 14,368 |
| 341 |
| 3,138 |
| 14,709 |
| 17,847 |
| 3,091 |
| 2006 |
|
Murrieta, CA |
| 49,790 |
| (S) |
| 1,883 |
| 5,532 |
| 188 |
| 1,903 |
| 5,700 |
| 7,603 |
| 1,344 |
| 2005 |
|
North Highlands, CA |
| 57,244 |
| (C) |
| 868 |
| 2,546 |
| 270 |
| 868 |
| 2,816 |
| 3,684 |
| 698 |
| 2005 |
|
Orangevale, CA |
| 51,142 |
| (C) |
| 1,423 |
| 4,175 |
| 237 |
| 1,423 |
| 4,412 |
| 5,835 |
| 1,093 |
| 2005 |
|
Palm Springs I, CA |
| 72,675 |
| (T) |
| 1,565 |
| 7,164 |
| 127 |
| 1,566 |
| 7,291 |
| 8,856 |
| 1,544 |
| 2006 |
|
Palm Springs II, CA |
| 122,370 |
| (T) |
| 2,131 |
| 9,758 |
| 354 |
| 2,132 |
| 10,110 |
| 12,243 |
| 2,127 |
| 2006 |
|
Pleasanton, CA |
| 85,195 |
|
|
| 2,799 |
| 8,222 |
| 61 |
| 2,799 |
| 8,283 |
| 11,082 |
| 1,940 |
| 2005 |
|
Rancho Cordova, CA |
| 53,928 |
| (C) |
| 1,094 |
| 3,212 |
| 230 |
| 1,095 |
| 3,442 |
| 4,537 |
| 866 |
| 2005 |
|
Redlands, CA |
| 62,805 |
| (F) |
| 196 |
| 2,192 |
| 1,110 |
| 449 |
| 3,049 |
| 3,498 |
| 1,023 |
| 1997 |
|
Rialto I, CA |
| 57,371 |
| (S) |
| 899 |
| 4,118 |
| 165 |
| 899 |
| 4,283 |
| 5,183 |
| 902 |
| 2006 |
|
Rialto II, CA |
| 99,783 |
|
|
| 277 |
| 3,098 |
| 1,705 |
| 672 |
| 4,408 |
| 5,080 |
| 1,407 |
| 1997 |
|
Riverside I, CA |
| 28,310 |
| (T) |
| 42 |
| 465 |
| 620 |
| 141 |
| 986 |
| 1,127 |
| 281 |
| 1997 |
|
Riverside II, CA |
| 20,420 |
| (T) |
| 42 |
| 423 |
| 355 |
| 114 |
| 706 |
| 820 |
| 222 |
| 1997 |
|
Riverside III, CA |
| 46,809 |
| (T) |
| 91 |
| 1,035 |
| 1,043 |
| 310 |
| 1,859 |
| 2,169 |
| 511 |
| 1998 |
|
Riverside IV, CA |
| 67,220 |
| (S) |
| 1,351 |
| 6,183 |
| 223 |
| 1,351 |
| 6,406 |
| 7,756 |
| 1,345 |
| 2006 |
|
Riverside V, CA |
| 85,346 |
| (T) |
| 1,170 |
| 5,359 |
| 294 |
| 1,170 |
| 5,653 |
| 6,824 |
| 1,193 |
| 2006 |
|
Riverside VI, CA |
| 74,900 |
| (T) |
| 1,040 |
| 4,119 |
| (168 | ) | 1,040 |
| 3,951 |
| 4,991 |
| 500 |
| 2007 |
|
Roseville, CA |
| 60,094 |
| (C) |
| 1,284 |
| 3,767 |
| 299 |
| 1,284 |
| 4,065 |
| 5,349 |
| 1,006 |
| 2005 |
|
Sacramento I, CA |
| 51,114 |
| (C) |
| 1,152 |
| 3,380 |
| 226 |
| 1,152 |
| 3,605 |
| 4,758 |
| 906 |
| 2005 |
|
Sacramento II, CA |
| 62,130 |
| (C) |
| 1,406 |
| 4,128 |
| 141 |
| 1,407 |
| 4,268 |
| 5,675 |
| 1,075 |
| 2005 |
|
San Bernardino I, CA |
| 83,253 |
| (F) |
| 152 |
| 1,704 |
| 1,422 |
| 450 |
| 2,827 |
| 3,278 |
| 867 |
| 1997 |
|
San Bernardino II, CA |
| 31,070 |
| (A) |
| 51 |
| 572 |
| 1,051 |
| 182 |
| 1,492 |
| 1,674 |
| 396 |
| 1997 |
|
San Bernardino III, CA |
| 57,215 |
| (F) |
| 152 |
| 1,695 |
| 1,630 |
| 444 |
| 3,033 |
| 3,477 |
| 1,049 |
| 1997 |
|
San Bernardino IV, CA |
| 41,546 |
| (A) |
| 112 |
| 1,251 |
| 992 |
| 306 |
| 2,050 |
| 2,355 |
| 619 |
| 1997 |
|
San Bernardino V, CA |
| 35,671 |
| (A) |
| 98 |
| 1,093 |
| 773 |
| 242 |
| 1,722 |
| 1,964 |
| 531 |
| 1997 |
|
San Bernardino VI, CA |
| 83,507 |
| (E) |
| 1,872 |
| 5,391 |
| 51 |
| 1,872 |
| 5,442 |
| 7,314 |
| 1,400 |
| 2005 |
|
San Bernardino VII, CA |
| 56,795 |
| (S) |
| 783 |
| 3,583 |
| 319 |
| 783 |
| 3,902 |
| 4,685 |
| 818 |
| 2006 |
|
San Bernardino VIII, CA |
| 103,860 |
| (S) |
| 1,205 |
| 5,518 |
| 243 |
| 1,205 |
| 5,761 |
| 6,966 |
| 1,663 |
| 2006 |
|
SCHEDULE III, continuedTable of Contents
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
| ||||||
|
|
|
| Initial Cost |
|
|
| at December 31, 2006 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| �� |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Pleasanton, CA |
|
|
| 2,799 |
| 8,222 |
| 28 |
| 2,799 |
| 8,250 |
| 11,049 |
| 510 |
| 2005 |
|
Rancho Cordova, CA |
| (C) |
| 1,094 |
| 3,212 |
| 65 |
| 1,095 |
| 3,277 |
| 4,372 |
| 264 |
| 2005 |
|
Redlands, CA |
| (F) |
| 196 |
| 2,192 |
| 1,049 |
| 449 |
| 2,988 |
| 3,437 |
| 751 |
| 1997 |
|
Rialto, CA |
|
|
| 277 |
| 3,098 |
| 1,559 |
| 672 |
| 4,263 |
| 4,934 |
| 1,027 |
| 1997 |
|
Rialto, CA |
|
|
| 899 |
| 4,118 |
| 74 |
| 899 |
| 4,192 |
| 5,091 |
| 205 |
| 2006 |
|
Riverside I, CA |
|
|
| 42 |
| 465 |
| 515 |
| 141 |
| 882 |
| 1,022 |
| 190 |
| 1997 |
|
Riverside II, CA |
|
|
| 42 |
| 423 |
| 334 |
| 114 |
| 685 |
| 799 |
| 155 |
| 1997 |
|
Riverside III, CA |
|
|
| 91 |
| 1,035 |
| 957 |
| 310 |
| 1,773 |
| 2,083 |
| 345 |
| 1998 |
|
Riverside, CA |
|
|
| 1,351 |
| 6,183 |
| 60 |
| 1,351 |
| 6,243 |
| 7,594 |
| 307 |
| 2006 |
|
Riverside, CA |
|
|
| 1,170 |
| 5,359 |
| 108 |
| 1,170 |
| 5,467 |
| 6,637 |
| 267 |
| 2006 |
|
Roseville, CA |
| (C) |
| 1,284 |
| 3,767 |
| 43 |
| 1,284 |
| 3,809 |
| 5,093 |
| 308 |
| 2005 |
|
Sacramento, CA |
| (C) |
| 1,152 |
| 3,380 |
| 67 |
| 1,152 |
| 3,447 |
| 4,599 |
| 279 |
| 2005 |
|
Sacramento, CA |
| (C) |
| 790 |
| 2,319 |
| 81 |
| 791 |
| 2,399 |
| 3,190 |
| 193 |
| 2005 |
|
Sacramento, CA |
| (C) |
| 1,406 |
| 4,128 |
| 43 |
| 1,407 |
| 4,171 |
| 5,578 |
| 337 |
| 2005 |
|
San Bernardino I, CA |
|
|
| 67 |
| 748 |
| 810 |
| 217 |
| 1,408 |
| 1,625 |
| 288 |
| 1997 |
|
San Bernardino II, CA |
| (F) |
| 152 |
| 1,704 |
| 1,285 |
| 450 |
| 2,691 |
| 3,141 |
| 599 |
| 1997 |
|
San Bernardino III, CA |
| (A) |
| 51 |
| 572 |
| 1,030 |
| 182 |
| 1,471 |
| 1,653 |
| 346 |
| 1997 |
|
San Bernardino IV, CA |
| (F) |
| 152 |
| 1,695 |
| 1,584 |
| 444 |
| 2,987 |
| 3,431 |
| 782 |
| 1997 |
|
San Bernardino V, CA |
| (A) |
| 112 |
| 1,251 |
| 1,045 |
| 306 |
| 2,102 |
| 2,408 |
| 581 |
| 1997 |
|
San Bernardino VI, CA |
| (A) |
| 98 |
| 1,093 |
| 840 |
| 242 |
| 1,789 |
| 2,031 |
| 522 |
| 1997 |
|
San Bernardino, CA |
| (E) |
| 1,872 |
| 5,391 |
| 14 |
| 1,872 |
| 5,406 |
| 7,277 |
| 555 |
| 2005 |
|
San Bernardino, CA |
|
|
| 783 |
| 3,583 |
| 117 |
| 783 |
| 3,699 |
| 4,482 |
| 180 |
| 2006 |
|
San Bernardino, CA |
|
|
| 1,205 |
| 5,518 |
| 85 |
| 1,205 |
| 5,603 |
| 6,808 |
| 275 |
| 2006 |
|
San Bernardino, CA |
|
|
| 1,475 |
| 6,753 |
| 129 |
| 1,476 |
| 6,881 |
| 8,357 |
| 337 |
| 2006 |
|
San Bernardino, CA |
|
|
| 1,691 |
| 7,741 |
| 143 |
| 1,692 |
| 7,882 |
| 9,574 |
| 385 |
| 2006 |
|
San Marcos, CA |
| (G) |
| 775 |
| 2,288 |
| 29 |
| 776 |
| 2,316 |
| 3,092 |
| 187 |
| 2005 |
|
Santa Ana, CA |
|
|
| 1,223 |
| 5,600 |
| 48 |
| 1,223 |
| 5,648 |
| 6,871 |
| 278 |
| 2006 |
|
Spring Valley, CA |
|
|
| 1,178 |
| 5,394 |
| 215 |
| 1,178 |
| 5,609 |
| 6,788 |
| 272 |
| 2006 |
|
Sun City, CA |
|
|
| 140 |
| 1,579 |
| 882 |
| 324 |
| 2,277 |
| 2,601 |
| 476 |
| 1998 |
|
Temecula I, CA |
|
|
| 184 |
| 2,038 |
| 1,078 |
| 435 |
| 2,865 |
| 3,300 |
| 602 |
| 1998 |
|
Temecula II, CA |
|
|
| 476 |
| 2,697 |
| 11 |
| 476 |
| 2,708 |
| 3,184 |
| 422 |
| 2003 |
|
Thousand Palms, CA |
|
|
| 1,493 |
| 6,835 |
| 144 |
| 1,493 |
| 6,979 |
| 8,472 |
| 341 |
| 2006 |
|
Vista, CA |
|
|
| 4,629 |
| 13,599 |
| 27 |
| 4,629 |
| 13,626 |
| 18,255 |
| 843 |
| 2005 |
|
Vista, CA |
| (D) |
| 711 |
| 4,076 |
| 1,985 |
| 1,118 |
| 5,654 |
| 6,772 |
| 1,133 |
| 2001 |
|
Walnut, CA |
|
|
| 1,578 |
| 4,635 |
| 84 |
| 1,595 |
| 4,702 |
| 6,297 |
| 291 |
| 2005 |
|
West Sacramento, CA |
|
|
| 1,222 |
| 3,590 |
| 32 |
| 1,222 |
| 3,622 |
| 4,844 |
| 224 |
| 2005 |
|
Westminister, CA |
| (G) |
| 1,740 |
| 5,142 |
| 94 |
| 1,743 |
| 5,233 |
| 6,976 |
| 422 |
| 2005 |
|
Yucaipa, CA |
| (F) |
| 198 |
| 2,221 |
| 1,417 |
| 525 |
| 3,311 |
| 3,836 |
| 751 |
| 1997 |
|
Aurora, CO |
|
|
| 736 |
| 1,637 |
| 199 |
| 736 |
| 1,836 |
| 2,572 |
| 129 |
| 2005 |
|
Aurora, CO |
|
|
| 352 |
| 783 |
| 137 |
| 352 |
| 920 |
| 1,272 |
| 63 |
| 2005 |
|
Aurora, CO |
|
|
| 752 |
| 3,066 |
| 95 |
| 753 |
| 3,160 |
| 3,913 |
| 168 |
| 2006 |
|
Boulder, CO |
| (H) |
| 1,005 |
| 4,095 |
| 176 |
| 1,005 |
| 4,271 |
| 5,276 |
| 164 |
| 2006 |
|
Boulder, CO |
| (H) |
| 2,556 |
| 10,416 |
| 74 |
| 2,556 |
| 10,489 |
| 13,046 |
| 408 |
| 2006 |
|
Boulder, CO |
| (H) |
| 1,370 |
| 5,581 |
| 90 |
| 1,370 |
| 5,671 |
| 7,041 |
| 220 |
| 2006 |
|
Boulder, CO |
| (H) |
| 2,102 |
| 8,563 |
| 74 |
| 2,102 |
| 8,637 |
| 10,739 |
| 336 |
| 2006 |
|
Centennial, CO |
| (C) |
| 1,268 |
| 2,820 |
| 113 |
| 1,268 |
| 2,932 |
| 4,201 |
| 238 |
| 2005 |
|
Colorado Springs, CO |
|
|
| 771 |
| 1,717 |
| 101 |
| 771 |
| 1,818 |
| 2,589 |
| 131 |
| 2005 |
|
Colorado Springs, CO |
| 2,036 |
| 657 |
| 2,674 |
| 42 |
| 656 |
| 2,717 |
| 3,373 |
| 67 |
| 2006 |
|
Denver, CO |
|
|
| 1,105 |
| 2,459 |
| 57 |
| 1,105 |
| 2,516 |
| 3,621 |
| 183 |
| 2005 |
|
Denver, CO |
| (C) |
| 878 |
| 1,953 |
| 67 |
| 879 |
| 2,019 |
| 2,898 |
| 167 |
| 2005 |
|
Denver, CO |
| (C) |
| 1,343 |
| 2,986 |
| 149 |
| 1,343 |
| 3,134 |
| 4,478 |
| 258 |
| 2005 |
|
Denver, CO |
|
|
| 673 |
| 2,741 |
| 84 |
| 674 |
| 2,825 |
| 3,499 |
| 151 |
| 2006 |
|
Denver, CO |
|
|
| 732 |
| 2,982 |
| 102 |
| 733 |
| 3,083 |
| 3,816 |
| 165 |
| 2006 |
|
Englewood, CO |
|
|
| 981 |
| 2,183 |
| 95 |
| 981 |
| 2,278 |
| 3,259 |
| 165 |
| 2005 |
|
|
|
|
|
|
| Initial Cost |
|
|
| Gross Carrying Amount at December 31, 2009 |
|
|
|
|
| ||||||
Description |
| Square |
| Encumbrances |
| Land |
| Building |
| Costs |
| Land |
| Building and |
| Total |
| Accumulated |
| Year Acquired / |
|
San Bernardino IX, CA |
| 78,839 |
| (S) |
| 1,475 |
| 6,753 |
| 291 |
| 1,476 |
| 7,043 |
| 8,518 |
| 1,482 |
| 2005 |
|
San Bernardino X, CA |
| 95,154 |
| (T) |
| 1,691 |
| 7,741 |
| 283 |
| 1,692 |
| 8,023 |
| 9,714 |
| 2,506 |
| 2005 |
|
San Marcos, CA |
| 37,430 |
| (G) |
| 775 |
| 2,288 |
| 109 |
| 776 |
| 2,395 |
| 3,171 |
| 598 |
| 2005 |
|
Santa Ana, CA |
| 64,571 |
| (T) |
| 1,223 |
| 5,600 |
| 222 |
| 1,223 |
| 5,822 |
| 7,045 |
| 1,219 |
| 2005 |
|
South Sacramento, CA |
| 51,740 |
| (C) |
| 790 |
| 2,319 |
| 234 |
| 791 |
| 2,552 |
| 3,343 |
| 634 |
| 2005 |
|
Spring Valley, CA |
| 55,045 |
| (S) |
| 1,178 |
| 5,394 |
| 344 |
| 1,178 |
| 5,738 |
| 6,917 |
| 1,194 |
| 2005 |
|
Sun City, CA |
| 38,335 |
| (T) |
| 140 |
| 1,579 |
| 892 |
| 324 |
| 2,287 |
| 2,611 |
| 692 |
| 1998 |
|
Temecula I, CA |
| 81,700 |
|
|
| 660 |
| 4,735 |
| 811 |
| 899 |
| 5,309 |
| 6,206 |
| 1,317 |
| 1998 |
|
Temecula II, CA |
| 84,345 |
| (S) |
| 3,080 |
| 5,839 |
| -3 |
| 3,080 |
| 5,835 |
| 8,915 |
| 739 |
| 2007 |
|
Thousand Palms, CA |
| 75,445 |
| (T) |
| 1,493 |
| 6,835 |
| 350 |
| 1,493 |
| 7,185 |
| 8,678 |
| 1,532 |
| 2005 |
|
Vista I, CA |
| 74,605 |
| (D) |
| 711 |
| 4,076 |
| 1,595 |
| 1,118 |
| 5,264 |
| 6,382 |
| 1,148 |
| 2001 |
|
Vista II, CA |
| 147,421 |
| (T) |
| 4,629 |
| 13,599 |
| 131 |
| 4,629 |
| 13,730 |
| 18,359 |
| 3,205 |
| 2005 |
|
Walnut, CA |
| 50,708 |
| (T) |
| 1,578 |
| 4,635 |
| 181 |
| 1,595 |
| 4,799 |
| 6,394 |
| 1,131 |
| 2005 |
|
West Sacramento, CA |
| 39,715 |
| (O) |
| 1,222 |
| 3,590 |
| 114 |
| 1,222 |
| 3,704 |
| 4,926 |
| 863 |
| 2005 |
|
Westminster, CA |
| 68,148 |
| (G) |
| 1,740 |
| 5,142 |
| 229 |
| 1,743 |
| 5,368 |
| 7,111 |
| 1,354 |
| 2005 |
|
Yucaipa, CA |
| 77,560 |
| (F) |
| 198 |
| 2,221 |
| 1,588 |
| 525 |
| 3,482 |
| 4,007 |
| 1,099 |
| 1997 |
|
Aurora, CO |
| 75,627 |
| (C) |
| 1,343 |
| 2,986 |
| 239 |
| 1,343 |
| 3,224 |
| 4,567 |
| 833 |
| 2005 |
|
Colorado Springs I, CO |
| 47,975 |
| (T) |
| 771 |
| 1,717 |
| 272 |
| 771 |
| 1,989 |
| 2,760 |
| 485 |
| 2005 |
|
Colorado Springs II, CO |
| 62,400 |
| 1,920 |
| 657 |
| 2,674 |
| 185 |
| 656 |
| 2,860 |
| 3,516 |
| 587 |
| 2005 |
|
Denver II, CO |
| 59,200 |
| (T) |
| 673 |
| 2,741 |
| 164 |
| 674 |
| 2,904 |
| 3,578 |
| 673 |
| 2005 |
|
Federal Heights, CO |
| 54,770 |
| (C) |
| 878 |
| 1,953 |
| 172 |
| 879 |
| 2,125 |
| 3,003 |
| 545 |
| 2005 |
|
Golden, CO |
| 85,830 |
| (C) |
| 1,683 |
| 3,744 |
| 239 |
| 1,684 |
| 3,983 |
| 5,666 |
| 1,025 |
| 2005 |
|
Littleton I , CO |
| 53,490 |
| (C) |
| 1,268 |
| 2,820 |
| 151 |
| 1,268 |
| 2,970 |
| 4,239 |
| 761 |
| 2005 |
|
Northglenn, CO |
| 52,102 |
| (C) |
| 862 |
| 1,917 |
| 137 |
| 862 |
| 2,053 |
| 2,916 |
| 538 |
| 2005 |
|
Bloomfield, CT |
| 48,700 |
| (T) |
| 78 |
| 880 |
| 2,176 |
| 360 |
| 2,774 |
| 3,134 |
| 822 |
| 1997 |
|
Branford, CT |
| 50,679 |
|
|
| 217 |
| 2,433 |
| 1,198 |
| 504 |
| 3,343 |
| 3,848 |
| 1,225 |
| 1995 |
|
Bristol, CT |
| 48,050 |
| (E) |
| 1,819 |
| 3,161 |
| 87 |
| 1,819 |
| 3,248 |
| 5,067 |
| 915 |
| 2005 |
|
East Windsor, CT |
| 45,900 |
| (A) |
| 744 |
| 1,294 |
| 327 |
| 744 |
| 1,621 |
| 2,366 |
| 437 |
| 2005 |
|
Enfield, CT |
| 52,875 |
| (D) |
| 424 |
| 2,424 |
| -150 |
| 473 |
| 2,225 |
| 2,698 |
| 551 |
| 2001 |
|
Gales Ferry, CT |
| 54,130 |
| (T) |
| 240 |
| 2,697 |
| 1,028 |
| 489 |
| 3,477 |
| 3,965 |
| 1,101 |
| 1995 |
|
Manchester I, CT (6) |
| 47,125 |
| (D) |
| 540 |
| 3,096 |
| -317 |
| 563 |
| 2,756 |
| 3,319 |
| 640 |
| 2002 |
|
Manchester II, CT |
| 52,725 |
| (E) |
| 996 |
| 1,730 |
| 137 |
| 996 |
| 1,867 |
| 2,863 |
| 515 |
| 2005 |
|
Milford, CT |
| 44,885 |
| (T) |
| 87 |
| 1,050 |
| 1,059 |
| 274 |
| 1,922 |
| 2,196 |
| 664 |
| 1994 |
|
Monroe, CT |
| 58,500 |
| (E) |
| 2,004 |
| 3,483 |
| 548 |
| 2,004 |
| 4,031 |
| 6,035 |
| 1,113 |
| 2005 |
|
Mystic, CT |
| 50,725 |
| (T) |
| 136 |
| 1,645 |
| 1,733 |
| 410 |
| 3,104 |
| 3,514 |
| 1,074 |
| 1994 |
|
Newington I, CT |
| 42,520 |
| (E) |
| 1,059 |
| 1,840 |
| 80 |
| 1,059 |
| 1,920 |
| 2,978 |
| 541 |
| 2005 |
|
Newington II, CT |
| 36,140 |
| (E) |
| 911 |
| 1,584 |
| 155 |
| 911 |
| 1,739 |
| 2,650 |
| 479 |
| 2005 |
|
Old Saybrook I, CT |
| 87,625 |
| (E) |
| 3,092 |
| 5,374 |
| 304 |
| 3,092 |
| 5,678 |
| 8,770 |
| 1,588 |
| 2005 |
|
Old Saybrook II, CT |
| 26,425 |
| (E) |
| 1,135 |
| 1,973 |
| 205 |
| 1,135 |
| 2,178 |
| 3,313 |
| 597 |
| 2005 |
|
South Windsor, CT |
| 72,125 |
|
|
| 90 |
| 1,127 |
| 1,121 |
| 272 |
| 2,065 |
| 2,338 |
| 678 |
| 1994 |
|
Stamford, CT |
| 28,957 |
| (E) |
| 1,941 |
| 3,374 |
| 76 |
| 1,941 |
| 3,450 |
| 5,391 |
| 980 |
| 2005 |
|
Washington, DC |
| 62,695 |
| (O) |
| 871 |
| 12,759 |
| 102 |
| 894 |
| 11,987 |
| 12,881 |
| 1,247 |
| 2008 |
|
Boca Raton, FL |
| 37,958 |
| (F) |
| 529 |
| 3,054 |
| 895 |
| 813 |
| 3,665 |
| 4,478 |
| 838 |
| 2001 |
|
Boynton Beach I, FL |
| 61,977 |
| (E) |
| 667 |
| 3,796 |
| 906 |
| 958 |
| 4,411 |
| 5,369 |
| 1,029 |
| 2001 |
|
Boynton Beach II, FL |
| 61,777 |
| (A) |
| 1,030 |
| 2,968 |
| 218 |
| 1,030 |
| 3,186 |
| 4,217 |
| 785 |
| 2005 |
|
Bradenton I, FL |
| 68,391 |
| (T) |
| 1,180 |
| 3,324 |
| 146 |
| 1,180 |
| 3,470 |
| 4,650 |
| 914 |
| 2005 |
|
Bradenton II, FL |
| 87,810 |
| (T) |
| 1,931 |
| 5,561 |
| 322 |
| 1,931 |
| 5,883 |
| 7,814 |
| 1,539 |
| 2005 |
|
Cape Coral, FL |
| 76,592 |
| (F) |
| 472 |
| 2,769 |
| 1,992 |
| 830 |
| 4,403 |
| 5,233 |
| 1,239 |
| 2005 |
|
Dania Beach, FL (6) |
| 181,513 |
| (T) |
| 3,584 |
| 10,324 |
| 838 |
| 3,584 |
| 11,163 |
| 14,746 |
| 2,870 |
| 2005 |
|
Dania, FL |
| 58,270 |
| (T) |
| 205 |
| 2,068 |
| 1,373 |
| 481 |
| 3,165 |
| 3,646 |
| 1,091 |
| 1994 |
|
Davie, FL |
| 81,135 |
| (D) |
| 1,268 |
| 7,183 |
| -1,089 |
| 1,373 |
| 5,989 |
| 7,362 |
| 1,124 |
| 2005 |
|
Deerfield Beach, FL |
| 57,280 |
| (A) |
| 946 |
| 2,999 |
| 1,875 |
| 1,311 |
| 4,509 |
| 5,820 |
| 1,120 |
| 1998 |
|
Delray Beach, FL |
| 67,821 |
| (A) |
| 798 |
| 4,539 |
| -232 |
| 883 |
| 4,222 |
| 5,105 |
| 1,044 |
| 2001 |
|
Fernandina Beach, FL |
| 110,785 |
| (T) |
| 189 |
| 2,111 |
| 4,875 |
| 523 |
| 6,652 |
| 7,175 |
| 1,729 |
| 1996 |
|
Ft. Lauderdale, FL |
| 70,093 |
| (D) |
| 937 |
| 3,646 |
| 2,177 |
| 1,384 |
| 5,376 |
| 6,760 |
| 1,340 |
| 1999 |
|
Ft. Myers, FL |
| 67,642 |
| (A) |
| 303 |
| 3,329 |
| 156 |
| 328 |
| 3,459 |
| 3,788 |
| 1,017 |
| 1998 |
|
Jacksonville I, FL |
| 80,586 |
| (T) |
| 1,862 |
| 5,362 |
| 40 |
| 1,862 |
| 5,401 |
| 7,263 |
| 1,163 |
| 2005 |
|
Jacksonville II, FL |
| 65,070 |
|
|
| 950 |
| 7,004 |
| -631 |
| 950 |
| 6,373 |
| 7,323 |
| 807 |
| 2007 |
|
Jacksonville III, FL |
| 65,595 |
| (T) |
| 860 |
| 7,409 |
| 258 |
| 1,670 |
| 6,857 |
| 8,527 |
| 867 |
| 2007 |
|
Jacksonville IV, FL |
| 78,370 |
| (T) |
| 870 |
| 8,049 |
| 0 |
| 870 |
| 8,049 |
| 8,919 |
| 1,020 |
| 2007 |
|
Jacksonville V, FL |
| 82,160 |
| (T) |
| 1,220 |
| 8,210 |
| -463 |
| 1,220 |
| 7,747 |
| 8,967 |
| 977 |
| 2007 |
|
Lake Worth, FL |
| 161,808 |
| (F) |
| 183 |
| 6,597 |
| 3,802 |
| 183 |
| 10,399 |
| 10,582 |
| 3,403 |
| 2005 |
|
Lakeland I, FL |
| 49,095 |
| (A) |
| 81 |
| 896 |
| 799 |
| 256 |
| 1,520 |
| 1,776 |
| 556 |
| 1994 |
|
Kendall, FL |
| 75,395 |
| (O) |
| 2,350 |
| 8,106 |
| -711 |
| 2,350 |
| 7,395 |
| 9,745 |
| 934 |
| 2007 |
|
Lutz I, FL |
| 66,595 |
| (T) |
| 901 |
| 2,478 |
| 104 |
| 901 |
| 2,582 |
| 3,483 |
| 688 |
| 2005 |
|
Lutz II, FL |
| 69,232 |
|
|
| 992 |
| 2,868 |
| 227 |
| 992 |
| 3,095 |
| 4,087 |
| 815 |
| 2005 |
|
Margate I, FL |
| 54,505 |
| (A) |
| 161 |
| 1,763 |
| 1,769 |
| 399 |
| 3,294 |
| 3,693 |
| 1,083 |
| 1994 |
|
Margate II, FL |
| 65,186 |
| (T) |
| 132 |
| 1,473 |
| 1,701 |
| 383 |
| 2,924 |
| 3,306 |
| 918 |
| 1996 |
|
Merrit Island, FL |
| 50,417 |
| (A) |
| 716 |
| 2,983 |
| -113 |
| 796 |
| 2,790 |
| 3,586 |
| 577 |
| 2005 |
|
Miami I, FL |
| 46,825 |
| (D) |
| 179 |
| 1,999 |
| 1,459 |
| 484 |
| 3,153 |
| 3,637 |
| 953 |
| 2005 |
|
Miami II, FL |
| 67,060 |
| (E) |
| 253 |
| 2,544 |
| 1,398 |
| 561 |
| 3,634 |
| 4,195 |
| 1,297 |
| 1994 |
|
Miami IV, FL |
| 150,510 |
| (T) |
| 4,577 |
| 13,185 |
| 459 |
| 4,577 |
| 13,643 |
| 18,220 |
| 2,962 |
| 2005 |
|
Naples I, FL |
| 48,150 |
| 1,121 |
| 90 |
| 1,010 |
| 2,205 |
| 270 |
| 3,035 |
| 3,305 |
| 901 |
| 1996 |
|
Naples II, FL |
| 65,850 |
| (E) |
| 148 |
| 1,652 |
| 4,200 |
| 558 |
| 5,443 |
| 6,000 |
| 1,599 |
| 1997 |
|
Naples III, FL |
| 80,675 |
| (A) |
| 139 |
| 1,561 |
| 3,375 |
| 598 |
| 4,477 |
| 5,075 |
| 1,440 |
| 1997 |
|
SCHEDULE III, continuedTable of Contents
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
| ||||||
|
|
|
| Initial Cost |
|
|
| at December 31, 2006 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Golden, CO |
| (C) |
| 1,683 |
| 3,744 |
| 185 |
| 1,684 |
| 3,929 |
| 5,613 |
| 317 |
| 2005 |
|
Littleton, CO |
|
|
| 1,121 |
| 2,495 |
| 95 |
| 1,121 |
| 2,590 |
| 3,711 |
| 189 |
| 2005 |
|
Northglenn, CO |
| (C) |
| 862 |
| 1,917 |
| 97 |
| 862 |
| 2,013 |
| 2,876 |
| 166 |
| 2005 |
|
Bloomfield, CT |
|
|
| 78 |
| 880 |
| 2,182 |
| 360 |
| 2,781 |
| 3,140 |
| 590 |
| 1997 |
|
Branford, CT |
|
|
| 217 |
| 2,433 |
| 1,088 |
| 504 |
| 3,233 |
| 3,738 |
| 930 |
| 1995 |
|
Bristol, CT |
| (E) |
| 1,819 |
| 3,161 |
| 34 |
| 1,819 |
| 3,195 |
| 5,014 |
| 340 |
| 2005 |
|
East Windsor, CT |
| (A) |
| 744 |
| 1,294 |
| 104 |
| 744 |
| 1,398 |
| 2,143 |
| 148 |
| 2005 |
|
Enfield, CT |
| (D) |
| 424 |
| 2,424 |
| 276 |
| 473 |
| 2,651 |
| 3,124 |
| 855 |
| 2001 |
|
Gales Ferry, CT |
|
|
| 240 |
| 2,697 |
| 1,283 |
| 489 |
| 3,731 |
| 4,220 |
| 1,148 |
| 1995 |
|
Manchester, CT |
| (D) |
| 540 |
| 3,096 |
| 247 |
| 563 |
| 3,320 |
| 3,883 |
| 1,017 |
| 2002 |
|
Manchester, CT |
| (E) |
| 996 |
| 1,730 |
| 31 |
| 996 |
| 1,761 |
| 2,756 |
| 188 |
| 2005 |
|
Milford, CT |
|
|
| 87 |
| 1,050 |
| 1,003 |
| 274 |
| 1,866 |
| 2,140 |
| 462 |
| 1994 |
|
Monroe, CT |
| (E) |
| 2,004 |
| 3,483 |
| 139 |
| 2,004 |
| 3,622 |
| 5,627 |
| 384 |
| 2005 |
|
Mystic, CT |
|
|
| 136 |
| 1,645 |
| 1,628 |
| 410 |
| 2,999 |
| 3,409 |
| 747 |
| 1994 |
|
Newington, CT |
| (E) |
| 1,059 |
| 1,840 |
| 40 |
| 1,059 |
| 1,880 |
| 2,939 |
| 199 |
| 2005 |
|
Newington, CT |
| (E) |
| 911 |
| 1,584 |
| 49 |
| 911 |
| 1,633 |
| 2,545 |
| 173 |
| 2005 |
|
Old Saybrook, CT |
| (E) |
| 3,092 |
| 5,374 |
| 191 |
| 3,092 |
| 5,564 |
| 8,657 |
| 589 |
| 2005 |
|
Old Saybrook, CT |
| (E) |
| 1,135 |
| 1,973 |
| 107 |
| 1,135 |
| 2,080 |
| 3,215 |
| 218 |
| 2005 |
|
South Windsor, CT |
|
|
| 90 |
| 1,127 |
| 953 |
| 272 |
| 1,898 |
| 2,170 |
| 471 |
| 1994 |
|
Stamford, CT |
| (E) |
| 1,941 |
| 3,374 |
| 41 |
| 1,941 |
| 3,415 |
| 5,356 |
| 363 |
| 2005 |
|
Boca Raton, FL |
| (F) |
| 529 |
| 3,054 |
| 1,436 |
| 813 |
| 4,206 |
| 5,019 |
| 1,084 |
| 2001 |
|
Boynton Beach, FL |
| (E) |
| 667 |
| 3,796 |
| 1,565 |
| 958 |
| 5,070 |
| 6,028 |
| 1,340 |
| 2001 |
|
Bradenton, FL |
|
|
| 1,931 |
| 5,561 |
| 157 |
| 1,931 |
| 5,718 |
| 7,649 |
| 636 |
| 2004 |
|
Bradenton, FL |
|
|
| 1,180 |
| 3,324 |
| 43 |
| 1,180 |
| 3,367 |
| 4,547 |
| 379 |
| 2004 |
|
Cape Coral, FL |
| (F) |
| 472 |
| 2,769 |
| 2,216 |
| 830 |
| 4,627 |
| 5,457 |
| 1,190 |
| 2000 |
|
Dania Beach, FL |
|
|
| 3,584 |
| 10,324 |
| 253 |
| 3,584 |
| 10,577 |
| 14,161 |
| 1,186 |
| 2004 |
|
Dania, FL |
|
|
| 205 |
| 2,068 |
| 1,233 |
| 481 |
| 3,025 |
| 3,506 |
| 766 |
| 1994 |
|
Davie, FL |
| (D) |
| 1,268 |
| 7,183 |
| 580 |
| 1,373 |
| 7,658 |
| 9,031 |
| 2,032 |
| 2001 |
|
Deerfield Beach, FL |
| (A) |
| 946 |
| 2,999 |
| 1,787 |
| 1,311 |
| 4,421 |
| 5,732 |
| 777 |
| 1998 |
|
DeLand, FL |
|
|
| 113 |
| 1,258 |
| 720 |
| 286 |
| 1,805 |
| 2,091 |
| 365 |
| 1998 |
|
Delray Beach, FL |
| (A) |
| 798 |
| 4,539 |
| 559 |
| 883 |
| 5,013 |
| 5,896 |
| 1,514 |
| 2001 |
|
Fernandina Beach, FL |
|
|
| 189 |
| 2,111 |
| 3,284 |
| 523 |
| 5,062 |
| 5,584 |
| 1,157 |
| 1996 |
|
Ft. Lauderdale, FL |
| (D) |
| 937 |
| 3,646 |
| 2,186 |
| 1,384 |
| 5,386 |
| 6,769 |
| 984 |
| 1999 |
|
Ft. Myers, FL |
| (A) |
| 303 |
| 3,329 |
| 307 |
| 328 |
| 3,610 |
| 3,939 |
| 1,106 |
| 1998 |
|
Gulf Breeze, FL |
|
|
| 2,035 |
| 5,863 |
| 29 |
| 2,035 |
| 5,892 |
| 7,928 |
| 378 |
| 2005 |
|
Jacksonville, FL |
|
|
| 1,862 |
| 5,362 |
| 17 |
| 1,862 |
| 5,378 |
| 7,241 |
| 324 |
| 2005 |
|
Lake Worth, FL |
| (F) |
| 183 |
| 6,597 |
| 5,081 |
| 183 |
| 11,678 |
| 11,861 |
| 3,524 |
| 1998 |
|
Lakeland I, FL |
| (A) |
| 81 |
| 896 |
| 903 |
| 256 |
| 1,624 |
| 1,880 |
| 551 |
| 1994 |
|
Lakeland II, FL |
|
|
| 49 |
| 551 |
| 436 |
| 103 |
| 933 |
| 1,036 |
| 276 |
| 1996 |
|
Leesburg, FL |
|
|
| 96 |
| 1,079 |
| 710 |
| 214 |
| 1,671 |
| 1,885 |
| 489 |
| 1997 |
|
Lutz, FL |
|
|
| 901 |
| 2,478 |
| 38 |
| 901 |
| 2,516 |
| 3,417 |
| 285 |
| 2004 |
|
Lutz, FL |
|
|
| 992 |
| 2,868 |
| 37 |
| 992 |
| 2,905 |
| 3,897 |
| 327 |
| 2004 |
|
Margate I, FL |
| (A) |
| 161 |
| 1,763 |
| 1,451 |
| 399 |
| 2,976 |
| 3,375 |
| 760 |
| 1994 |
|
Margate II, FL |
|
|
| 132 |
| 1,473 |
| 1,580 |
| 383 |
| 2,802 |
| 3,185 |
| 632 |
| 1996 |
|
Merrit Island, FL |
| (A) |
| 716 |
| 2,983 |
| 411 |
| 796 |
| 3,314 |
| 4,110 |
| 797 |
| 2000 |
|
Miami I, FL |
| (D) |
| 179 |
| 1,999 |
| 1,539 |
| 484 |
| 3,233 |
| 3,717 |
| 911 |
| 1995 |
|
Miami II, FL |
|
|
| 188 |
| 2,052 |
| 634 |
| 286 |
| 2,587 |
| 2,874 |
| 784 |
| 1994 |
|
Miami III, FL |
| (E) |
| 253 |
| 2,544 |
| 1,253 |
| 561 |
| 3,489 |
| 4,050 |
| 916 |
| 1994 |
|
Miami IV, FL |
|
|
| 193 |
| 2,174 |
| 1,677 |
| 516 |
| 3,528 |
| 4,044 |
| 1,007 |
| 1995 |
|
Miami V, FL |
|
|
| 193 |
| 2,165 |
| 868 |
| 364 |
| 2,861 |
| 3,226 |
| 775 |
| 1995 |
|
Miami, FL |
|
|
| 4,577 |
| 13,185 |
| 82 |
| 4,577 |
| 13,267 |
| 17,844 |
| 851 |
| 2005 |
|
Naples I, FL |
|
|
| 90 |
| 1,010 |
| 2,227 |
| 270 |
| 3,057 |
| 3,327 |
| 761 |
| 1996 |
|
Naples II, FL |
| (E) |
| 148 |
| 1,652 |
| 4,107 |
| 558 |
| 5,350 |
| 5,907 |
| 1,134 |
| 1997 |
|
|
|
|
|
|
| Initial Cost |
|
|
| Gross Carrying Amount at December 31, 2009 |
|
|
|
|
| ||||||
Description |
| Square |
| Encumbrances |
| Land |
| Building and |
| Costs |
| Land |
| Building and |
| Total |
| Accumulated |
| Year Acquired / |
|
Naples IV, FL |
| 40,700 |
| (T) |
| 262 |
| 2,980 |
| 461 |
| 407 |
| 3,296 |
| 3,703 |
| 1,106 |
| 1998 |
|
Ocoee, FL |
| 76,130 |
| 3,263 |
| 1,286 |
| 3,705 |
| 95 |
| 1,286 |
| 3,800 |
| 5,087 |
| 926 |
| 2005 |
|
Orange City, FL |
| 59,586 |
| (T) |
| 1,191 |
| 3,209 |
| 85 |
| 1,191 |
| 3,294 |
| 4,485 |
| 862 |
| 2005 |
|
Orlando I, FL (6) |
| 52,170 |
| (T) |
| 187 |
| 2,088 |
| 520 |
| 240 |
| 2,555 |
| 2,795 |
| 1,064 |
| 1997 |
|
Orlando II, FL |
| 63,084 |
| (E) |
| 1,589 |
| 4,576 |
| 75 |
| 1,589 |
| 4,651 |
| 6,239 |
| 1,137 |
| 2005 |
|
Orlando III, FL |
| 104,140 |
| (T) |
| 1,209 |
| 7,768 |
| 220 |
| 1,209 |
| 7,988 |
| 9,197 |
| 1,584 |
| 2005 |
|
Oviedo, FL |
| 49,251 |
| (T) |
| 440 |
| 2,824 |
| 292 |
| 440 |
| 3,116 |
| 3,556 |
| 636 |
| 2005 |
|
Pembroke Pines, FL |
| 67,321 |
| (D) |
| 337 |
| 3,772 |
| 2,621 |
| 953 |
| 5,777 |
| 6,730 |
| 1,758 |
| 1997 |
|
Royal Palm Beach I, FL |
| 98,961 |
| (F) |
| 205 |
| 2,148 |
| 2,630 |
| 741 |
| 4,242 |
| 4,983 |
| 1,557 |
| 1994 |
|
Royal Palm Beach II, FL |
| 81,415 |
| (T) |
| 1,640 |
| 8,607 |
| (462 | ) | 1,640 |
| 8,146 |
| 9,786 |
| 1,028 |
| 2007 |
|
Sanford, FL |
| 61,810 |
| (T) |
| 453 |
| 2,911 |
| 121 |
| 453 |
| 3,032 |
| 3,486 |
| 613 |
| 2005 |
|
Sarasota, FL |
| 71,102 |
| (A) |
| 333 |
| 3,656 |
| 661 |
| 529 |
| 4,120 |
| 4,650 |
| 1,186 |
| 1998 |
|
St. Augustine, FL |
| 59,725 |
| (T) |
| 135 |
| 1,515 |
| 3,133 |
| 383 |
| 4,400 |
| 4,783 |
| 1,377 |
| 1996 |
|
Stuart, FL |
| 86,883 |
| (E) |
| 324 |
| 3,625 |
| 2,673 |
| 685 |
| 5,937 |
| 6,622 |
| 1,803 |
| 1997 |
|
SW Ranches, FL |
| 64,955 |
| 3,991 |
| 1,390 |
| 7,598 |
| (859 | ) | 1,390 |
| 6,738 |
| 8,128 |
| 853 |
| 2007 |
|
Tampa II, FL |
| 83,763 |
|
|
| 2,670 |
| 6,249 |
| (423 | ) | 2,670 |
| 5,826 |
| 8,496 |
| 742 |
| 2007 |
|
West Palm Beach I, FL |
| 68,063 |
| (T) |
| 719 |
| 3,420 |
| 712 |
| 835 |
| 4,016 |
| 4,851 |
| 978 |
| 2001 |
|
West Palm Beach II, FL |
| 94,503 |
|
|
| 2,129 |
| 8,671 |
| 261 |
| 2,129 |
| 8,932 |
| 11,061 |
| 2,695 |
| 2005 |
|
Alpharetta, GA |
| 90,485 |
| (F) |
| 806 |
| 4,720 |
| (409 | ) | 967 |
| 4,150 |
| 5,117 |
| 900 |
| 2001 |
|
Austell , GA |
| 83,525 |
| 2,244 |
| 1,635 |
| 4,711 |
| 153 |
| 1,643 |
| 4,856 |
| 6,499 |
| 867 |
| 2005 |
|
Decatur, GA |
| 148,320 |
| (T) |
| 616 |
| 6,776 |
| 33 |
| 616 |
| 6,809 |
| 7,425 |
| 2,313 |
| 1998 |
|
Norcross, GA |
| 85,140 |
| (D) |
| 514 |
| 2,930 |
| 158 |
| 632 |
| 2,969 |
| 3,602 |
| 660 |
| 2001 |
|
Peachtree City, GA |
| 49,845 |
| (T) |
| 435 |
| 2,532 |
| 59 |
| 529 |
| 2,497 |
| 3,026 |
| 565 |
| 2001 |
|
Smyrna, GA |
| 56,970 |
| (F) |
| 750 |
| 4,271 |
| (799 | ) | 750 |
| 3,472 |
| 4,222 |
| 769 |
| 2001 |
|
Snellville, GA |
| 80,100 |
| (T) |
| 1,660 |
| 4,781 |
| 131 |
| 1,660 |
| 4,912 |
| 6,571 |
| 770 |
| 2007 |
|
Suwanee I, GA |
| 85,190 |
| (T) |
| 1,737 |
| 5,010 |
| 139 |
| 1,737 |
| 5,149 |
| 6,885 |
| 804 |
| 2007 |
|
Suwanee II, GA |
| 79,640 |
| (T) |
| 800 |
| 6,942 |
| (322 | ) | 800 |
| 6,620 |
| 7,420 |
| 838 |
| 2007 |
|
Addison, IL |
| 31,325 |
| (T) |
| 428 |
| 3,531 |
| 206 |
| 428 |
| 3,737 |
| 4,165 |
| 967 |
| 2005 |
|
Aurora, IL |
| 74,060 |
| (T) |
| 644 |
| 3,652 |
| 46 |
| 644 |
| 3,698 |
| 4,342 |
| 983 |
| 2005 |
|
Bartlett, IL |
| 51,425 |
| (T) |
| 931 |
| 2,493 |
| 133 |
| 931 |
| 2,626 |
| 3,557 |
| 683 |
| 2005 |
|
Hanover, IL |
| 41,178 |
| (E) |
| 1,126 |
| 2,197 |
| 145 |
| 1,126 |
| 2,342 |
| 3,468 |
| 609 |
| 2005 |
|
Bellwood, IL |
| 86,525 |
| (E) |
| 1,012 |
| 5,768 |
| (611 | ) | 1,012 |
| 5,157 |
| 6,169 |
| 1,199 |
| 2001 |
|
Des Plaines, IL (6) |
| 74,400 |
| 3,486 |
| 1,564 |
| 4,327 |
| 252 |
| 1,564 |
| 4,579 |
| 6,143 |
| 1,191 |
| 2005 |
|
Elk Grove Village, IL |
| 64,179 |
| (T) |
| 1,446 |
| 3,535 |
| 224 |
| 1,446 |
| 3,759 |
| 5,205 |
| 1,005 |
| 2005 |
|
Glenview, IL |
| 100,115 |
| (T) |
| 3,740 |
| 10,367 |
| 129 |
| 3,740 |
| 10,496 |
| 14,236 |
| 2,764 |
| 2005 |
|
Gurnee, IL |
| 80,275 |
| (T) |
| 1,521 |
| 5,440 |
| 233 |
| 1,521 |
| 5,673 |
| 7,194 |
| 1,491 |
| 2005 |
|
Harvey, IL |
| 60,090 |
| (T) |
| 869 |
| 3,635 |
| 119 |
| 869 |
| 3,754 |
| 4,623 |
| 981 |
| 2005 |
|
Joliet, IL |
| 74,350 |
| (T) |
| 547 |
| 4,704 |
| 124 |
| 547 |
| 4,828 |
| 5,375 |
| 1,268 |
| 2005 |
|
Kildeer, IL |
| 46,475 |
|
|
| 2,102 |
| 2,187 |
| 108 |
| 2,102 |
| 2,295 |
| 4,397 |
| 599 |
| 2005 |
|
Lombard, IL |
| 57,938 |
| (T) |
| 1,305 |
| 3,938 |
| 597 |
| 1,305 |
| 4,535 |
| 5,840 |
| 1,154 |
| 2005 |
|
Mount Prospect, IL |
| 65,000 |
|
|
| 1,701 |
| 3,114 |
| 187 |
| 1,701 |
| 3,301 |
| 5,002 |
| 850 |
| 2005 |
|
Mundelein, IL |
| 44,700 |
| (T) |
| 1,498 |
| 2,782 |
| 136 |
| 1,498 |
| 2,918 |
| 4,416 |
| 768 |
| 2005 |
|
North Chicago, IL |
| 53,300 |
| (T) |
| 1,073 |
| 3,006 |
| 217 |
| 1,073 |
| 3,223 |
| 4,296 |
| 844 |
| 2005 |
|
Plainfield I, IL |
| 53,800 |
| (T) |
| 1,770 |
| 1,715 |
| 183 |
| 1,770 |
| 1,898 |
| 3,668 |
| 506 |
| 2005 |
|
Plainfield II, IL |
| 52,100 |
| (T) |
| 694 |
| 2,000 |
| 116 |
| 694 |
| 2,116 |
| 2,811 |
| 532 |
| 2005 |
|
Schaumburg, IL |
| 31,160 |
| (T) |
| 538 |
| 645 |
| 124 |
| 538 |
| 769 |
| 1,307 |
| 214 |
| 2005 |
|
Streamwood, IL |
| 64,305 |
| (A) |
| 1,447 |
| 1,662 |
| 235 |
| 1,447 |
| 1,897 |
| 3,344 |
| 506 |
| 2005 |
|
Warrensville, IL |
| 48,796 |
| (A) |
| 1,066 |
| 3,072 |
| 148 |
| 1,066 |
| 3,220 |
| 4,286 |
| 772 |
| 2005 |
|
Waukegan, IL |
| 79,750 |
| (T) |
| 1,198 |
| 4,363 |
| 229 |
| 1,198 |
| 4,592 |
| 5,790 |
| 1,198 |
| 2005 |
|
West Chicago, IL |
| 48,175 |
| (E) |
| 1,071 |
| 2,249 |
| 140 |
| 1,071 |
| 2,389 |
| 3,460 |
| 630 |
| 2005 |
|
Westmont, IL |
| 53,700 |
| (T) |
| 1,155 |
| 3,873 |
| 78 |
| 1,155 |
| 3,951 |
| 5,106 |
| 1,042 |
| 2005 |
|
Wheeling I, IL |
| 54,210 |
| (A) |
| 857 |
| 3,213 |
| 191 |
| 857 |
| 3,404 |
| 4,261 |
| 898 |
| 2005 |
|
Wheeling II, IL |
| 67,825 |
|
|
| 793 |
| 3,816 |
| 202 |
| 793 |
| 4,018 |
| 4,811 |
| 1,055 |
| 2005 |
|
Woodridge, IL |
| 50,667 |
| 2,380 |
| 943 |
| 3,397 |
| 177 |
| 943 |
| 3,574 |
| 4,517 |
| 925 |
| 2005 |
|
Indianapolis I, IN |
| 43,600 |
| (T) |
| 1,871 |
| 1,230 |
| 143 |
| 1,871 |
| 1,373 |
| 3,244 |
| 368 |
| 2005 |
|
Indianapolis II, IN |
| 44,900 |
| (T) |
| 669 |
| 2,434 |
| 134 |
| 669 |
| 2,568 |
| 3,237 |
| 692 |
| 2005 |
|
Indianapolis III, IN |
| 60,850 |
| (T) |
| 1,229 |
| 2,834 |
| 105 |
| 1,229 |
| 2,939 |
| 4,168 |
| 771 |
| 2005 |
|
Indianapolis IV, IN |
| 62,105 |
| (T) |
| 641 |
| 3,154 |
| 11 |
| 552 |
| 3,253 |
| 3,806 |
| 865 |
| 2005 |
|
Indianapolis V, IN |
| 74,825 |
| (T) |
| 2,138 |
| 3,633 |
| 152 |
| 2,138 |
| 3,785 |
| 5,923 |
| 996 |
| 2005 |
|
Indianapolis VI, IN |
| 73,003 |
| (A) |
| 406 |
| 3,496 |
| 186 |
| 406 |
| 3,682 |
| 4,088 |
| 963 |
| 2005 |
|
Indianapolis VII, IN |
| 91,727 |
| (T) |
| 908 |
| 4,755 |
| 450 |
| 908 |
| 5,205 |
| 6,113 |
| 1,345 |
| 2005 |
|
Indianapolis VIII, IN |
| 80,000 |
| (T) |
| 887 |
| 3,548 |
| 184 |
| 887 |
| 3,732 |
| 4,619 |
| 977 |
| 2005 |
|
Indianapolis IX, IN |
| 61,732 |
| (T) |
| 1,133 |
| 4,103 |
| 163 |
| 1,133 |
| 4,266 |
| 5,399 |
| 1,120 |
| 2005 |
|
Baton Rouge I, LA |
| 35,450 |
| (T) |
| 112 |
| 1,248 |
| 66 |
| 139 |
| 1,287 |
| 1,426 |
| 421 |
| 1997 |
|
Baton Rouge II, LA |
| 80,277 |
| (A) |
| 118 |
| 1,181 |
| 1,626 |
| 331 |
| 2,594 |
| 2,925 |
| 679 |
| 1997 |
|
Slidell, LA |
| 79,540 |
| (D) |
| 188 |
| 3,175 |
| 1,017 |
| 802 |
| 3,578 |
| 4,380 |
| 766 |
| 2001 |
|
Boston, MA |
| 60,695 |
| (F) |
| 1,516 |
| 8,628 |
| (1,501 | ) | 1,516 |
| 7,127 |
| 8,643 |
| 1,553 |
| 2002 |
|
Leominster, MA |
| 53,823 |
| (D) |
| 90 |
| 1,519 |
| 2,253 |
| 338 |
| 3,524 |
| 3,862 |
| 983 |
| 1998 |
|
Medford, MA |
| 58,895 |
| 3,250 |
| 1,330 |
| 7,165 |
| (510 | ) | 1,330 |
| 6,655 |
| 7,985 |
| 841 |
| 2007 |
|
Baltimore, MD |
| 93,625 |
| (E) |
| 1,050 |
| 5,997 |
| (229 | ) | 1,173 |
| 5,645 |
| 6,818 |
| 1,384 |
| 2001 |
|
California, MD |
| 77,840 |
| (T) |
| 1,486 |
| 4,280 |
| 103 |
| 1,486 |
| 4,383 |
| 5,869 |
| 1,149 |
| 2005 |
|
Gaithersburg, MD |
| 86,970 |
| 6,065 |
| 3,124 |
| 9,000 |
| 162 |
| 3,124 |
| 9,162 |
| 12,286 |
| 2,357 |
| 2005 |
|
Laurel, MD |
| 162,097 |
| (F) |
| 1,409 |
| 8,035 |
| 2,013 |
| 1,928 |
| 9,529 |
| 11,457 |
| 2,114 |
| 2001 |
|
Temple Hills, MD |
| 97,250 |
| (D) |
| 1,541 |
| 8,788 |
| 723 |
| 1,800 |
| 9,252 |
| 11,052 |
| 2,074 |
| 2001 |
|
Grand Rapids, MI |
| 87,381 |
| (A) |
| 185 |
| 1,821 |
| 1,145 |
| 325 |
| 2,827 |
| 3,151 |
| 960 |
| 1996 |
|
SCHEDULE III, continuedTable of Contents
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
| ||||||
|
|
|
| Initial Cost |
|
|
| at December 31, 2006 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Naples III, FL |
| (A) |
| 139 |
| 1,561 |
| 3,552 |
| 598 |
| 4,654 |
| 5,252 |
| 1,471 |
| 1997 |
|
Naples IV, FL |
|
|
| 262 |
| 2,980 |
| 405 |
| 407 |
| 3,239 |
| 3,647 |
| 794 |
| 1998 |
|
Ocala, FL |
|
|
| 55 |
| 558 |
| 496 |
| 155 |
| 954 |
| 1,109 |
| 240 |
| 1994 |
|
Ocoee, FL |
|
|
| 1,286 |
| 3,705 |
| 58 |
| 1,286 |
| 3,763 |
| 5,050 |
| 324 |
| 2005 |
|
Orange City, FL |
|
|
| 1,191 |
| 3,209 |
| 50 |
| 1,191 |
| 3,259 |
| 4,450 |
| 366 |
| 2004 |
|
Orlando, FL |
|
|
| 187 |
| 2,088 |
| 420 |
| 240 |
| 2,455 |
| 2,695 |
| 870 |
| 1997 |
|
Orlando, FL |
| (A) |
| 1,030 |
| 2,968 |
| 153 |
| 1,030 |
| 3,121 |
| 4,152 |
| 272 |
| 2005 |
|
Orlando, FL |
|
|
| 1,209 |
| 7,768 |
| 14 |
| 1,209 |
| 7,782 |
| 8,991 |
| 189 |
| 2006 |
|
Oviedo, FL |
|
|
| 440 |
| 2,824 |
| 66 |
| 440 |
| 2,890 |
| 3,330 |
| 69 |
| 2006 |
|
Pembroke Pines, FL |
| (D) |
| 337 |
| 3,772 |
| 2,496 |
| 953 |
| 5,652 |
| 6,605 |
| 1,220 |
| 1997 |
|
Royal Palm Beach, FL |
| (F) |
| 205 |
| 2,148 |
| 2,587 |
| 741 |
| 4,199 |
| 4,940 |
| 1,460 |
| 1994 |
|
Sanford, FL |
|
|
| 453 |
| 2,911 |
| 16 |
| 453 |
| 2,927 |
| 3,380 |
| 71 |
| 2006 |
|
Sarasota, FL |
| (A) |
| 333 |
| 3,656 |
| 1,020 |
| 529 |
| 4,480 |
| 5,009 |
| 1,276 |
| 1998 |
|
St. Augustine, FL |
|
|
| 135 |
| 1,515 |
| 2,982 |
| 383 |
| 4,248 |
| 4,632 |
| 983 |
| 1996 |
|
Stuart I, FL |
|
|
| 154 |
| 1,726 |
| 1,102 |
| 319 |
| 2,663 |
| 2,982 |
| 810 |
| 1997 |
|
Stuart II, FL |
| (E) |
| 324 |
| 3,625 |
| 2,288 |
| 685 |
| 5,553 |
| 6,237 |
| 1,251 |
| 1997 |
|
Tampa I, FL |
|
|
| 124 |
| 1,252 |
| 371 |
| 220 |
| 1,527 |
| 1,747 |
| 456 |
| 1994 |
|
Tampa II, FL |
|
|
| 330 |
| 1,887 |
| 428 |
| 330 |
| 2,315 |
| 2,645 |
| 663 |
| 2001 |
|
Tampa, FL |
| (E) |
| 1,589 |
| 4,576 |
| 17 |
| 1,589 |
| 4,593 |
| 6,181 |
| 413 |
| 2005 |
|
Vero Beach, FL |
|
|
| 159 |
| 1,783 |
| 356 |
| 259 |
| 2,039 |
| 2,298 |
| 542 |
| 1998/1997 |
|
West Palm Beach, FL |
| 2,425 |
| 719 |
| 3,420 |
| 1,424 |
| 835 |
| 4,728 |
| 5,563 |
| 1,394 |
| 2001 |
|
West Palm Beach, FL |
|
|
| 2,129 |
| 8,671 |
| 155 |
| 2,129 |
| 8,826 |
| 10,955 |
| 1,133 |
| 2004 |
|
Alpharetta, GA |
| (F) |
| 806 |
| 4,720 |
| 827 |
| 967 |
| 5,386 |
| 6,353 |
| 1,840 |
| 2001 |
|
Austell, GA |
|
|
| 1,635 |
| 4,711 |
| 59 |
| 1,643 |
| 4,761 |
| 6,405 |
| 102 |
| 2006 |
|
Decatur, GA |
|
|
| 616 |
| 6,776 |
| (421 | ) | 616 |
| 6,355 |
| 6,971 |
| 1,683 |
| 1998 |
|
Norcross, GA |
| (D) |
| 514 |
| 2,930 |
| 625 |
| 632 |
| 3,436 |
| 4,069 |
| 927 |
| 2001 |
|
Peachtree City, GA |
| 1,787 |
| 435 |
| 2,532 |
| 502 |
| 529 |
| 2,940 |
| 3,469 |
| 807 |
| 2001 |
|
Smyrna, GA |
| (F) |
| 750 |
| 4,271 |
| 60 |
| 750 |
| 4,331 |
| 5,081 |
| 1,394 |
| 2001 |
|
Addison, IL |
| (J) |
| 428 |
| 3,531 |
| 77 |
| 428 |
| 3,608 |
| 4,036 |
| 402 |
| 2004 |
|
Aurora, IL |
|
|
| 644 |
| 3,652 |
| 40 |
| 644 |
| 3,692 |
| 4,336 |
| 414 |
| 2004 |
|
Bartlett, IL |
|
|
| 931 |
| 2,493 |
| 53 |
| 931 |
| 2,546 |
| 3,477 |
| 285 |
| 2004 |
|
Bartlett, IL |
| (E) |
| 1,126 |
| 2,197 |
| 70 |
| 1,126 |
| 2,267 |
| 3,393 |
| 253 |
| 2004 |
|
Bellwood, IL |
| (E) |
| 1,012 |
| 5,768 |
| 502 |
| 1,012 |
| 6,270 |
| 7,282 |
| 1,924 |
| 2001 |
|
Des Plaines, IL |
| (J) |
| 1,564 |
| 4,327 |
| 108 |
| 1,564 |
| 4,435 |
| 5,999 |
| 493 |
| 2004 |
|
Elk Grove Village, IL |
| (J) |
| 1,446 |
| 3,535 |
| 151 |
| 1,446 |
| 3,686 |
| 5,132 |
| 417 |
| 2004 |
|
Glenview, IL |
| (J) |
| 3,740 |
| 10,367 |
| 93 |
| 3,740 |
| 10,460 |
| 14,200 |
| 1,167 |
| 2004 |
|
Gurnee, IL |
| (J) |
| 1,521 |
| 5,440 |
| 136 |
| 1,521 |
| 5,576 |
| 7,097 |
| 621 |
| 2004 |
|
Harvey, IL |
| (J) |
| 869 |
| 3,635 |
| 44 |
| 869 |
| 3,679 |
| 4,548 |
| 413 |
| 2004 |
|
Joliet, IL |
| (J) |
| 547 |
| 4,704 |
| 50 |
| 547 |
| 4,754 |
| 5,301 |
| 533 |
| 2004 |
|
Lake Zurich, IL |
| (J) |
| 2,102 |
| 2,187 |
| 65 |
| 2,102 |
| 2,252 |
| 4,354 |
| 250 |
| 2004 |
|
Lombard, IL |
| (J) |
| 1,305 |
| 3,938 |
| 487 |
| 1,305 |
| 4,425 |
| 5,730 |
| 463 |
| 2004 |
|
Mount Prospect, IL |
| (J) |
| 1,701 |
| 3,114 |
| 63 |
| 1,701 |
| 3,177 |
| 4,878 |
| 354 |
| 2004 |
|
Mundelein, IL |
| (J) |
| 1,498 |
| 2,782 |
| 66 |
| 1,498 |
| 2,848 |
| 4,346 |
| 320 |
| 2004 |
|
North Chicago, IL |
| (J) |
| 1,073 |
| 3,006 |
| 61 |
| 1,073 |
| 3,067 |
| 4,140 |
| 345 |
| 2004 |
|
Plainfield, IL |
|
|
| 1,770 |
| 1,715 |
| 123 |
| 1,770 |
| 1,838 |
| 3,608 |
| 204 |
| 2004 |
|
Plainfield, IL |
|
|
| 694 |
| 2,000 |
| 93 |
| 694 |
| 2,093 |
| 2,787 |
| 177 |
| 2005 |
|
Schaumburg, IL |
|
|
| 538 |
| 645 |
| 78 |
| 538 |
| 723 |
| 1,261 |
| 84 |
| 2004 |
|
Streamwood, IL |
| (A) |
| 1,447 |
| 1,662 |
| 87 |
| 1,447 |
| 1,749 |
| 3,196 |
| 202 |
| 2004 |
|
Warrenville, IL |
| (A) |
| 1,066 |
| 3,072 |
| 85 |
| 1,066 |
| 3,157 |
| 4,223 |
| 260 |
| 2005 |
|
Waukegan, IL |
| (J) |
| 1,198 |
| 4,363 |
| 69 |
| 1,198 |
| 4,432 |
| 5,630 |
| 498 |
| 2004 |
|
West Chicago, IL |
| (E) |
| 1,071 |
| 2,249 |
| 93 |
| 1,071 |
| 2,342 |
| 3,413 |
| 261 |
| 2004 |
|
Westmont, IL |
| (J) |
| 1,155 |
| 3,873 |
| 37 |
| 1,155 |
| 3,910 |
| 5,065 |
| 439 |
| 2004 |
|
Wheeling, IL |
| (A) |
| 857 |
| 3,213 |
| 130 |
| 857 |
| 3,343 |
| 4,200 |
| 373 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
| Costs |
| Gross Carrying Amount |
|
|
|
|
| ||||
|
|
|
|
|
| Initial Cost |
| Subsequent |
| at December 31, 2009 |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
| Building and |
| to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| Square Footage |
| Encumbrances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation (L) |
| Developed |
|
Portage, MI (6) |
| 50,280 |
| (T) |
| 104 |
| 1,160 |
| 637 |
| 237 |
| 1,664 |
| 1,901 |
| 550 |
| 1996 |
|
Romulus, MI |
| 42,050 |
| (A) |
| 308 |
| 1,743 |
| 283 |
| 418 |
| 1,916 |
| 2,334 |
| 388 |
| 2005 |
|
Wyoming, MI |
| 91,158 |
| (A) |
| 191 |
| 2,135 |
| 806 |
| 354 |
| 2,778 |
| 3,132 |
| 948 |
| 1996 |
|
Gulfport, MS |
| 61,251 |
| (E) |
| 172 |
| 1,928 |
| 905 |
| 338 |
| 2,667 |
| 3,005 |
| 896 |
| 1997 |
|
Belmont, NC |
| 81,048 |
| (T) |
| 385 |
| 2,196 |
| 187 |
| 451 |
| 2,317 |
| 2,768 |
| 587 |
| 2001 |
|
Burlington I, NC |
| 109,396 |
| (A) |
| 498 |
| 2,837 |
| (130 | ) | 498 |
| 2,707 |
| 3,205 |
| 654 |
| 2001 |
|
Burlington II, NC |
| 42,205 |
| (T) |
| 320 |
| 1,829 |
| (66 | ) | 340 |
| 1,742 |
| 2,083 |
| 418 |
| 2001 |
|
Cary, NC |
| 111,772 |
| (A) |
| 543 |
| 3,097 |
| 183 |
| 543 |
| 3,281 |
| 3,823 |
| 875 |
| 2001 |
|
Charlotte, NC |
| 69,000 |
| (F) |
| 782 |
| 4,429 |
| 555 |
| 1,068 |
| 4,699 |
| 5,766 |
| 937 |
| 2005 |
|
Fayetteville I, NC |
| 41,400 |
| (T) |
| 156 |
| 1,747 |
| 757 |
| 301 |
| 2,359 |
| 2,660 |
| 887 |
| 1997 |
|
Fayetteville II, NC |
| 54,225 |
| (F) |
| 213 |
| 2,301 |
| 698 |
| 399 |
| 2,813 |
| 3,212 |
| 941 |
| 1997 |
|
Raleigh, NC |
| 48,675 |
| (T) |
| 209 |
| 2,398 |
| 205 |
| 296 |
| 2,516 |
| 2,812 |
| 837 |
| 1998 |
|
Brick, NJ |
| 51,740 |
| (T) |
| 234 |
| 2,762 |
| 1,274 |
| 485 |
| 3,785 |
| 4,270 |
| 1,390 |
| 1994 |
|
Clifton, NJ |
| 105,550 |
| (A) |
| 4,346 |
| 12,520 |
| 140 |
| 4,346 |
| 12,660 |
| 17,007 |
| 2,934 |
| 2005 |
|
Cranford, NJ |
| 91,250 |
| (M) |
| 290 |
| 3,493 |
| 2,114 |
| 779 |
| 5,117 |
| 5,897 |
| 1,764 |
| 1994 |
|
East Hanover, NJ |
| 107,579 |
|
|
| 504 |
| 5,763 |
| 3,887 |
| 1,315 |
| 8,839 |
| 10,154 |
| 3,005 |
| 1994 |
|
Elizabeth, NJ |
| 38,910 |
|
|
| 751 |
| 2,164 |
| 279 |
| 751 |
| 2,443 |
| 3,194 |
| 561 |
| 2005 |
|
Fairview, NJ |
| 27,925 |
| (M) |
| 246 |
| 2,759 |
| 255 |
| 246 |
| 3,013 |
| 3,260 |
| 1,125 |
| 1997 |
|
Hamilton, NJ |
| 70,550 |
| (T) |
| 1,885 |
| 5,430 |
| 231 |
| 1,893 |
| 5,653 |
| 7,546 |
| 1,001 |
| 2005 |
|
Hoboken, NJ |
| 34,180 |
| (M) |
| 1,370 |
| 3,947 |
| 512 |
| 1,370 |
| 4,459 |
| 5,829 |
| 1,026 |
| 2005 |
|
Linden, NJ |
| 100,325 |
| (T) |
| 517 |
| 6,008 |
| 1,943 |
| 1,077 |
| 7,391 |
| 8,468 |
| 2,481 |
| 1994 |
|
Morris Township, NJ (5) |
| 71,776 |
| (D) |
| 500 |
| 5,602 |
| 2,491 |
| 1,072 |
| 7,520 |
| 8,593 |
| 2,533 |
| 1997 |
|
Parsippany, NJ |
| 66,325 |
| (M) |
| 475 |
| 5,322 |
| 1,890 |
| 844 |
| 6,843 |
| 7,687 |
| 2,303 |
| 1997 |
|
Randolph, NJ |
| 52,565 |
| (D) |
| 855 |
| 4,872 |
| 244 |
| 1,108 |
| 4,863 |
| 5,971 |
| 1,077 |
| 2002 |
|
Sewell, NJ |
| 57,830 |
| (F) |
| 484 |
| 2,766 |
| 585 |
| 706 |
| 3,128 |
| 3,835 |
| 732 |
| 2001 |
|
Albuquerque I, NM |
| 65,852 |
| (C) |
| 1,039 |
| 3,395 |
| 199 |
| 1,039 |
| 3,594 |
| 4,633 |
| 954 |
| 2005 |
|
Albuquerque II, NM |
| 58,798 |
| (C) |
| 1,163 |
| 3,801 |
| 184 |
| 1,163 |
| 3,985 |
| 5,148 |
| 1,043 |
| 2005 |
|
Albuquerque IV, NM |
| 57,536 |
| (C) |
| 664 |
| 2,171 |
| 205 |
| 664 |
| 2,376 |
| 3,040 |
| 625 |
| 2005 |
|
Carlsbad, NM |
| 39,999 |
| (B) |
| 490 |
| 1,613 |
| 97 |
| 491 |
| 1,709 |
| 2,200 |
| 457 |
| 2005 |
|
Deming, NM |
| 33,005 |
| (B) |
| 338 |
| 1,114 |
| 153 |
| 339 |
| 1,267 |
| 1,606 |
| 332 |
| 2005 |
|
Las Cruces, NM |
| 21,890 |
| (T) |
| 354 |
| 1,256 |
| 2 |
| 357 |
| 1,267 |
| 1,624 |
| 131 |
| 2005 |
|
Las Cruces, NM |
| 43,850 |
| (B) |
| 611 |
| 2,012 |
| 194 |
| 612 |
| 2,205 |
| 2,816 |
| 584 |
| 2005 |
|
Lovington, NM |
| 15,750 |
| (B) |
| 222 |
| 740 |
| (139 | ) | 169 |
| 653 |
| 822 |
| 170 |
| 2005 |
|
Silver City, NM |
| 26,975 |
| (B) |
| 153 |
| 504 |
| 122 |
| 153 |
| 625 |
| 779 |
| 167 |
| 2005 |
|
Truth or Consequences, NM |
| 24,010 |
| (B) |
| 10 |
| 34 |
| 79 |
| 11 |
| 113 |
| 124 |
| 43 |
| 2005 |
|
Las Vegas I, NV |
| 48,218 |
| (T) |
| 1,851 |
| 2,986 |
| 220 |
| 1,851 |
| 3,206 |
| 5,057 |
| 664 |
| 2005 |
|
Las Vegas II, NV |
| 48,850 |
| (T) |
| 3,354 |
| 5,411 |
| 154 |
| 3,355 |
| 5,564 |
| 8,919 |
| 1,143 |
| 2005 |
|
Jamaica, NY |
| 88,415 |
| (D) |
| 2,043 |
| 11,658 |
| (1,698 | ) | 2,043 |
| 9,960 |
| 12,003 |
| 2,027 |
| 2001 |
|
New Rochelle, NY |
| 48,431 |
| (A) |
| 1,673 |
| 4,827 |
| 118 |
| 1,673 |
| 4,945 |
| 6,618 |
| 1,202 |
| 2005 |
|
North Babylon, NY |
| 78,188 |
| (F) |
| 225 |
| 2,514 |
| 3,692 |
| 568 |
| 5,863 |
| 6,431 |
| 1,741 |
| 1998 |
|
Riverhead, NY |
| 38,240 |
| (N) |
| 1,068 |
| 1,149 |
| 120 |
| 1,068 |
| 1,269 |
| 2,338 |
| 367 |
| 2005 |
|
Southold, NY |
| 58,609 |
| (N) |
| 2,079 |
| 2,238 |
| 196 |
| 2,079 |
| 2,434 |
| 4,513 |
| 692 |
| 2005 |
|
Boardman, OH |
| 65,495 |
| (F) |
| 64 |
| 745 |
| 1,679 |
| 287 |
| 2,201 |
| 2,488 |
| 988 |
| 2005 |
|
Canton I, OH |
| 39,750 |
| (T) |
| 138 |
| 679 |
| 254 |
| 137 |
| 934 |
| 1,071 |
| 229 |
| 2005 |
|
Canton II, OH |
| 26,200 |
| (T) |
| 122 |
| 595 |
| 115 |
| 120 |
| 712 |
| 832 |
| 189 |
| 2005 |
|
Centerville I, OH |
| 86,390 |
| (T) |
| 471 |
| 3,705 |
| 123 |
| 471 |
| 3,828 |
| 4,299 |
| 1,009 |
| 2005 |
|
Centerville II, OH |
| 43,350 |
| (E) |
| 332 |
| 1,757 |
| 168 |
| 332 |
| 1,925 |
| 2,257 |
| 500 |
| 2005 |
|
Cleveland I, OH |
| 45,950 |
|
| �� | 525 |
| 2,592 |
| 129 |
| 524 |
| 2,722 |
| 3,246 |
| 704 |
| 2005 |
|
Cleveland II, OH |
| 58,425 |
| (T) |
| 290 |
| 1,427 |
| 170 |
| 289 |
| 1,599 |
| 1,887 |
| 429 |
| 2005 |
|
Columbus , OH |
| 72,155 |
| (T) |
| 1,234 |
| 3,151 |
| 62 |
| 1,239 |
| 3,207 |
| 4,446 |
| 615 |
| 2005 |
|
Dayton I, OH |
| 43,100 |
| (E) |
| 323 |
| 2,070 |
| 118 |
| 323 |
| 2,188 |
| 2,511 |
| 575 |
| 2005 |
|
Dayton II, OH |
| 48,149 |
| (T) |
| 441 |
| 2,176 |
| 170 |
| 440 |
| 2,347 |
| 2,787 |
| 595 |
| 2005 |
|
Euclid I, OH |
| 46,910 |
| (T) |
| 200 |
| 1,053 |
| 1,970 |
| 317 |
| 2,906 |
| 3,223 |
| 1,614 |
| 1988 |
|
Euclid II, OH |
| 47,275 |
| (T) |
| 359 |
| — |
| 1,638 |
| 461 |
| 1,535 |
| 1,997 |
| 451 |
| 1988 |
|
Grove City, OH |
| 89,290 |
| (T) |
| 1,756 |
| 4,485 |
| 103 |
| 1,761 |
| 4,584 |
| 6,345 |
| 872 |
| 2005 |
|
Hilliard, OH |
| 89,715 |
| (T) |
| 1,361 |
| 3,476 |
| 110 |
| 1,366 |
| 3,581 |
| 4,947 |
| 679 |
| 2005 |
|
Lakewood, OH |
| 39,337 |
|
|
| 405 |
| 854 |
| 401 |
| 405 |
| 1,255 |
| 1,660 |
| 717 |
| 2005 |
|
Louisville, OH |
| 53,960 |
| (T) |
| 257 |
| 1,260 |
| 131 |
| 255 |
| 1,393 |
| 1,648 |
| 365 |
| 2005 |
|
Marblehead, OH |
| 52,300 |
| (T) |
| 374 |
| 1,843 |
| 165 |
| 373 |
| 2,009 |
| 2,382 |
| 518 |
| 2005 |
|
Mason, OH |
| 33,900 |
| (T) |
| 127 |
| 1,419 |
| 85 |
| 149 |
| 1,482 |
| 1,631 |
| 538 |
| 1998 |
|
Mentor, OH |
| 51,225 |
|
|
| 206 |
| 1,011 |
| 1,431 |
| 204 |
| 2,444 |
| 2,648 |
| 438 |
| 2005 |
|
Miamisburg, OH |
| 59,930 |
| (T) |
| 375 |
| 2,410 |
| 220 |
| 375 |
| 2,630 |
| 3,005 |
| 679 |
| 2005 |
|
Middleburg Heights, OH |
| 93,025 |
| (T) |
| 63 |
| 704 |
| 1,955 |
| 332 |
| 2,390 |
| 2,722 |
| 768 |
| 2005 |
|
North Canton I, OH |
| 45,400 |
| (T) |
| 209 |
| 846 |
| 504 |
| 299 |
| 1,260 |
| 1,559 |
| 940 |
| 1979 |
|
North Canton II, OH |
| 44,140 |
| (T) |
| 70 |
| 1,226 |
| 0 |
| 239 |
| 1,057 |
| 1,296 |
| 275 |
| 1983 |
|
North Olmsted I, OH |
| 48,665 |
| (T) |
| 63 |
| 704 |
| 1,185 |
| 214 |
| 1,738 |
| 1,952 |
| 639 |
| 2005 |
|
North Olmsted II, OH |
| 47,850 |
| (F) |
| 290 |
| 1,129 |
| 1,043 |
| 469 |
| 1,993 |
| 2,462 |
| 1,041 |
| 2005 |
|
North Randall, OH |
| 80,099 |
| (F) |
| 515 |
| 2,323 |
| 2,440 |
| 898 |
| 4,380 |
| 5,278 |
| 1,129 |
| 1998 |
|
Perry, OH |
| 63,700 |
| (T) |
| 290 |
| 1,427 |
| 115 |
| 288 |
| 1,544 |
| 1,832 |
| 410 |
| 2005 |
|
Reynoldsburg, OH |
| 66,895 |
| (T) |
| 1,290 |
| 3,295 |
| 191 |
| 1,295 |
| 3,481 |
| 4,776 |
| 652 |
| 2005 |
|
Strongsville, OH |
| 43,727 |
| (T) |
| 570 |
| 3,486 |
| (287 | ) | 570 |
| 3,199 |
| 3,769 |
| 403 |
| 2007 |
|
Warrensville Heights, OH |
| 90,281 |
|
|
| 525 |
| 766 |
| 2,861 |
| 935 |
| 3,217 |
| 4,152 |
| 917 |
| 2005 |
|
Westlake, OH |
| 62,750 |
| (T) |
| 509 |
| 2,508 |
| 128 |
| 508 |
| 2,638 |
| 3,145 |
| 692 |
| 2005 |
|
SCHEDULE III, continuedTable of Contents
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
| ||||||
|
|
|
| Initial Cost |
|
|
| at December 31, 2006 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Wheeling, IL |
| (J) |
| 793 |
| 3,816 |
| 171 |
| 793 |
| 3,987 |
| 4,780 |
| 441 |
| 2004 |
|
Woodridge, IL |
| (J) |
| 943 |
| 3,397 |
| 49 |
| 943 |
| 3,446 |
| 4,389 |
| 387 |
| 2004 |
|
Indianapolis, IN |
|
|
| 641 |
| 3,154 |
| (21 | ) | 552 |
| 3,221 |
| 3,774 |
| 362 |
| 2004 |
|
Indianapolis, IN |
| (A) |
| 406 |
| 3,496 |
| 100 |
| 406 |
| 3,596 |
| 4,002 |
| 400 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 1,871 |
| 1,230 |
| 63 |
| 1,871 |
| 1,293 |
| 3,164 |
| 148 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 669 |
| 2,434 |
| 65 |
| 669 |
| 2,499 |
| 3,168 |
| 287 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 1,229 |
| 2,834 |
| 37 |
| 1,229 |
| 2,871 |
| 4,100 |
| 322 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 2,138 |
| 3,633 |
| 76 |
| 2,138 |
| 3,709 |
| 5,847 |
| 414 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 908 |
| 4,755 |
| 340 |
| 908 |
| 5,095 |
| 6,003 |
| 554 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 887 |
| 3,548 |
| 98 |
| 887 |
| 3,646 |
| 4,533 |
| 406 |
| 2004 |
|
Indianapolis, IN |
| (J) |
| 1,133 |
| 4,103 |
| 97 |
| 1,133 |
| 4,200 |
| 5,333 |
| 467 |
| 2004 |
|
Baton Rouge I, LA |
|
|
| 112 |
| 1,248 |
| 493 |
| 208 |
| 1,646 |
| 1,853 |
| 431 |
| 1997 |
|
Baton Rouge II, LA |
| (A) |
| 118 |
| 1,181 |
| 1,105 |
| 267 |
| 2,137 |
| 2,404 |
| 638 |
| 1997 |
|
Baton Rouge III, LA |
|
|
| 133 |
| 1,487 |
| 593 |
| 271 |
| 1,943 |
| 2,213 |
| 493 |
| 1997 |
|
Baton Rouge IV, LA |
|
|
| 32 |
| 377 |
| 124 |
| 64 |
| 469 |
| 533 |
| 116 |
| 1998 |
|
Prairieville, LA |
|
|
| 90 |
| 1,004 |
| 142 |
| 90 |
| 1,146 |
| 1,236 |
| 314 |
| 1998 |
|
Slidell, LA |
| (D) |
| 188 |
| 3,175 |
| 1,574 |
| 802 |
| 4,136 |
| 4,937 |
| 1,032 |
| 2001 |
|
Boston, MA |
| (F) |
| 1,516 |
| 8,628 |
| 157 |
| 1,516 |
| 8,785 |
| 10,301 |
| 2,463 |
| 2002 |
|
Leominster, MA |
| (D) |
| 90 |
| 1,519 |
| 2,278 |
| 338 |
| 3,549 |
| 3,887 |
| 801 |
| 1998 |
|
Baltimore, MD |
| (E) |
| 1,050 |
| 5,997 |
| 845 |
| 1,173 |
| 6,719 |
| 7,892 |
| 1,986 |
| 2001 |
|
California, MD |
|
|
| 1,486 |
| 4,280 |
| 52 |
| 1,486 |
| 4,332 |
| 5,818 |
| 483 |
| 2004 |
|
Gaithersburg, MD |
| 6,299 |
| 3,124 |
| 9,000 |
| 81 |
| 3,124 |
| 9,081 |
| 12,205 |
| 933 |
| 2005 |
|
Laurel, MD |
| (F) |
| 1,409 |
| 8,035 |
| 3,110 |
| 1,928 |
| 10,626 |
| 12,554 |
| 2,628 |
| 2001 |
|
Temple Hills, MD |
| (D) |
| 1,541 |
| 8,788 |
| 1,910 |
| 1,800 |
| 10,439 |
| 12,239 |
| 2,676 |
| 2001 |
|
Grand Rapids, MI |
| (A) |
| 185 |
| 1,821 |
| 1,328 |
| 325 |
| 3,010 |
| 3,334 |
| 973 |
| 1996 |
|
Portage, MI |
|
|
| 104 |
| 1,160 |
| 741 |
| 237 |
| 1,768 |
| 2,005 |
| 559 |
| 1996 |
|
Romulus, MI |
| (A) |
| 308 |
| 1,743 |
| 569 |
| 418 |
| 2,202 |
| 2,620 |
| 510 |
| 1997 |
|
Wyoming, MI |
| (A) |
| 191 |
| 2,135 |
| 938 |
| 354 |
| 2,910 |
| 3,264 |
| 988 |
| 1996 |
|
Biloxi, MS |
|
|
| 148 |
| 1,652 |
| 618 |
| 279 |
| 2,139 |
| 2,418 |
| 520 |
| 1997 |
|
Gautier, MS |
|
|
| 93 |
| 1,040 |
| 19 |
| 93 |
| 1,059 |
| 1,152 |
| 328 |
| 1997 |
|
Gulfport I, MS |
|
|
| 128 |
| 1,438 |
| 807 |
| 156 |
| 2,217 |
| 2,373 |
| 591 |
| 1997 |
|
Gulfport II, MS |
|
|
| 117 |
| 1,306 |
| 510 |
| 179 |
| 1,755 |
| 1,933 |
| 477 |
| 1997 |
|
Gulfport III, MS |
| (E) |
| 172 |
| 1,928 |
| 820 |
| 338 |
| 2,581 |
| 2,920 |
| 629 |
| 1997 |
|
Waveland, MS |
|
|
| 215 |
| 2,481 |
| (482 | ) | 392 |
| 1,822 |
| 2,214 |
| 88 |
| 1998 |
|
Belmont, NC |
|
|
| 385 |
| 2,196 |
| 467 |
| 451 |
| 2,597 |
| 3,048 |
| 757 |
| 2001 |
|
Burlington I, NC |
| (A) |
| 498 |
| 2,837 |
| 117 |
| 498 |
| 2,954 |
| 3,452 |
| 933 |
| 2001 |
|
Burlington II, NC |
|
|
| 320 |
| 1,829 |
| 210 |
| 340 |
| 2,019 |
| 2,359 |
| 582 |
| 2001 |
|
Cary, NC |
| (A) |
| 543 |
| 3,097 |
| 149 |
| 543 |
| 3,247 |
| 3,789 |
| 726 |
| 2001 |
|
Charlotte, NC |
| (F) |
| 782 |
| 4,429 |
| 1,316 |
| 1,068 |
| 5,460 |
| 6,527 |
| 1,205 |
| 1999 |
|
Fayetteville I, NC |
|
|
| 156 |
| 1,747 |
| 714 |
| 301 |
| 2,316 |
| 2,617 |
| 645 |
| 1997 |
|
Fayetteville II, NC |
| (F) |
| 213 |
| 2,301 |
| 669 |
| 399 |
| 2,784 |
| 3,183 |
| 675 |
| 1997 |
|
Raleigh, NC |
|
|
| 209 |
| 2,398 |
| 198 |
| 296 |
| 2,509 |
| 2,805 |
| 604 |
| 1998 |
|
Brick, NJ |
|
|
| 234 |
| 2,762 |
| 1,130 |
| 485 |
| 3,641 |
| 4,126 |
| 1,020 |
| 1994 |
|
Clifton, NJ |
| (A) |
| 4,346 |
| 12,520 |
| 63 |
| 4,346 |
| 12,583 |
| 16,929 |
| 969 |
| 2005 |
|
Cranford, NJ |
|
|
| 290 |
| 3,493 |
| 1,953 |
| 779 |
| 4,956 |
| 5,736 |
| 1,258 |
| 1994 |
|
East Hanover, NJ |
|
|
| 504 |
| 5,763 |
| 3,318 |
| 1,315 |
| 8,270 |
| 9,585 |
| 2,113 |
| 1994 |
|
Elizabeth, NJ |
|
|
| 751 |
| 2,164 |
| 105 |
| 751 |
| 2,269 |
| 3,020 |
| 164 |
| 2005 |
|
Fairview, NJ |
|
|
| 246 |
| 2,759 |
| 165 |
| 246 |
| 2,924 |
| 3,170 |
| 847 |
| 1997 |
|
Hamilton, NJ |
|
|
| 1,885 |
| 5,430 |
| 49 |
| 1,893 |
| 5,470 |
| 7,363 |
| 117 |
| 2006 |
|
Hoboken, NJ |
|
|
| 1,370 |
| 3,947 |
| 223 |
| 1,370 |
| 4,169 |
| 5,540 |
| 306 |
| 2005 |
|
Jersey City, NJ |
|
|
| 397 |
| 4,507 |
| 2,426 |
| 1,010 |
| 6,320 |
| 7,330 |
| 1,623 |
| 1994 |
|
Linden I, NJ |
|
|
| 517 |
| 6,008 |
| 2,865 |
| 1,170 |
| 8,220 |
| 9,390 |
| 1,645 |
| 1994 |
|
Linden II, NJ |
|
|
| — |
| 2 |
| 859 |
| 189 |
| 672 |
| 861 |
| 51 |
| 1994 |
|
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
|
|
| ||||||
|
|
|
|
|
| Initial Cost |
|
|
| at December 31, 2009 |
|
|
|
|
| ||||||
Description |
| Square Footage |
| Encumbrances |
| Land |
| Building |
| Costs |
| Land |
| Building and |
| Total |
| Accumulated |
| Year Acquired / |
|
Willoughby, OH |
| 34,064 |
| (T) |
| 239 |
| 1,178 |
| 173 |
| 238 |
| 1,352 |
| 1,590 |
| 350 |
| 2005 |
|
Youngstown, OH |
| 65,950 |
| (A) |
| 67 |
| — |
| 1,306 |
| 204 |
| 1,169 |
| 1,373 |
| 491 |
| 2005 |
|
Levittown, PA |
| 76,180 |
| (F) |
| 926 |
| 5,296 |
| (107 | ) | 926 |
| 5,189 |
| 6,115 |
| 1,294 |
| 2001 |
|
Philadelphia, PA |
| 97,689 |
| (D) |
| 1,461 |
| 8,334 |
| (1,487 | ) | 1,461 |
| 6,847 |
| 8,308 |
| 1,455 |
| 2001 |
|
Alcoa, TN |
| 42,325 |
| (J) |
| 254 |
| 2,113 |
| 117 |
| 254 |
| 2,229 |
| 2,484 |
| 546 |
| 2005 |
|
Antioch, TN |
| 76,160 |
| (T) |
| 588 |
| 4,906 |
| 239 |
| 588 |
| 5,145 |
| 5,733 |
| 1,143 |
| 2005 |
|
Cordova I, TN |
| 54,225 |
| (G) |
| 296 |
| 2,482 |
| 159 |
| 297 |
| 2,641 |
| 2,937 |
| 664 |
| 2005 |
|
Cordova II, TN |
| 67,750 |
| 2,581 |
| 429 |
| 3,580 |
| 250 |
| 429 |
| 3,830 |
| 4,259 |
| 774 |
| 2005 |
|
Knoxville I, TN |
| 29,337 |
| (R) |
| 99 |
| 1,113 |
| 199 |
| 102 |
| 1,309 |
| 1,411 |
| 467 |
| 1997 |
|
Knoxville II, TN |
| 38,000 |
| (R) |
| 117 |
| 1,308 |
| 273 |
| 129 |
| 1,570 |
| 1,698 |
| 533 |
| 1997 |
|
Knoxville III, TN |
| 45,736 |
| (T) |
| 182 |
| 2,053 |
| 672 |
| 331 |
| 2,576 |
| 2,907 |
| 805 |
| 1998 |
|
Knoxville IV, TN |
| 58,752 |
| (T) |
| 158 |
| 1,771 |
| 701 |
| 310 |
| 2,320 |
| 2,630 |
| 691 |
| 1998 |
|
Knoxville V, TN |
| 42,790 |
| (R) |
| 134 |
| 1,493 |
| 399 |
| 235 |
| 1,791 |
| 2,026 |
| 666 |
| 1998 |
|
Knoxville VI, TN |
| 63,440 |
| (J) |
| 439 |
| 3,653 |
| 154 |
| 440 |
| 3,806 |
| 4,246 |
| 929 |
| 2005 |
|
Knoxville VII, TN |
| 55,094 |
| (J) |
| 312 |
| 2,594 |
| 199 |
| 312 |
| 2,792 |
| 3,105 |
| 681 |
| 2005 |
|
Knoxville VIII, TN |
| 95,868 |
| (J) |
| 585 |
| 4,869 |
| 200 |
| 586 |
| 5,067 |
| 5,654 |
| 1,234 |
| 2005 |
|
Memphis I, TN |
| 90,700 |
| (E) |
| 677 |
| 3,880 |
| 449 |
| 677 |
| 4,329 |
| 5,006 |
| 964 |
| 2001 |
|
Memphis II, TN |
| 71,885 |
| (Q) |
| 395 |
| 2,276 |
| (179 | ) | 395 |
| 2,097 |
| 2,492 |
| 483 |
| 2001 |
|
Memphis III, TN |
| 40,807 |
| (G) |
| 212 |
| 1,779 |
| 198 |
| 213 |
| 1,976 |
| 2,189 |
| 499 |
| 2005 |
|
Memphis IV, TN |
| 38,750 |
| (G) |
| 160 |
| 1,342 |
| 195 |
| 160 |
| 1,537 |
| 1,697 |
| 389 |
| 2005 |
|
Memphis V, TN |
| 60,120 |
| (G) |
| 209 |
| 1,753 |
| 468 |
| 210 |
| 2,220 |
| 2,430 |
| 521 |
| 2005 |
|
Memphis VI, TN |
| 108,771 |
| (Q) |
| 462 |
| 3,851 |
| 281 |
| 462 |
| 4,133 |
| 4,594 |
| 842 |
| 2006 |
|
Memphis VII, TN |
| 115,303 |
| (T) |
| 215 |
| 1,792 |
| 460 |
| 215 |
| 2,252 |
| 2,467 |
| 453 |
| 2006 |
|
Memphis VIII, TN |
| 96,060 |
| (T) |
| 355 |
| 2,959 |
| 321 |
| 355 |
| 3,280 |
| 3,635 |
| 673 |
| 2006 |
|
Nashville I, TN |
| 103,430 |
|
|
| 405 |
| 3,379 |
| 432 |
| 405 |
| 3,811 |
| 4,216 |
| 836 |
| 2005 |
|
Nashville II, TN |
| 83,484 |
|
|
| 593 |
| 4,950 |
| 215 |
| 593 |
| 5,165 |
| 5,758 |
| 1,146 |
| 2005 |
|
Nashville III, TN |
| 101,475 |
|
|
| 416 |
| 3,469 |
| 287 |
| 416 |
| 3,756 |
| 4,172 |
| 816 |
| 2006 |
|
Nashville IV, TN |
| 102,425 |
| 5,527 |
| 992 |
| 8,274 |
| 228 |
| 992 |
| 8,502 |
| 9,494 |
| 1,855 |
| 2006 |
|
Austin I, TX |
| 59,595 |
|
|
| 2,239 |
| 2,038 |
| 186 |
| 2,410 |
| 2,052 |
| 4,462 |
| 521 |
| 2005 |
|
Austin II, TX |
| 65,401 |
| (O) |
| 734 |
| 3,894 |
| 157 |
| 738 |
| 4,046 |
| 4,784 |
| 786 |
| 2006 |
|
Austin III, TX |
| 70,610 |
|
|
| 1,030 |
| 5,468 |
| 164 |
| 1,035 |
| 5,626 |
| 6,661 |
| 990 |
| 2006 |
|
Baytown, TX |
| 38,950 |
| (T) |
| 946 |
| 863 |
| 74 |
| 948 |
| 936 |
| 1,884 |
| 236 |
| 2005 |
|
Bryan, TX |
| 60,450 |
| (T) |
| 1,394 |
| 1,268 |
| 112 |
| 1,396 |
| 1,378 |
| 2,774 |
| 343 |
| 2005 |
|
College Station, TX |
| 26,550 |
| (H) |
| 812 |
| 740 |
| 84 |
| 813 |
| 823 |
| 1,636 |
| 206 |
| 2005 |
|
Dallas, TX |
| 58,582 |
| (K) |
| 2,475 |
| 2,253 |
| 224 |
| 2,475 |
| 2,476 |
| 4,951 |
| 584 |
| 2005 |
|
Denton, TX |
| 60,836 |
| 1,988 |
| 553 |
| 2,936 |
| 131 |
| 569 |
| 3,051 |
| 3,620 |
| 537 |
| 2006 |
|
El Paso I, TX |
| 59,652 |
| (C) |
| 1,983 |
| 1,805 |
| 180 |
| 1,984 |
| 1,984 |
| 3,968 |
| 488 |
| 2005 |
|
El Paso II, TX |
| 48,704 |
| (C) |
| 1,319 |
| 1,201 |
| 148 |
| 1,320 |
| 1,349 |
| 2,669 |
| 322 |
| 2005 |
|
El Paso III, TX |
| 71,276 |
| (C) |
| 2,408 |
| 2,192 |
| 149 |
| 2,409 |
| 2,340 |
| 4,749 |
| 565 |
| 2005 |
|
El Paso IV, TX |
| 67,058 |
| (C) |
| 2,073 |
| 1,888 |
| (37 | ) | 2,074 |
| 1,850 |
| 3,925 |
| 464 |
| 2005 |
|
El Paso V, TX |
| 62,300 |
| (B) |
| 1,758 |
| 1,617 |
| 114 |
| 1,761 |
| 1,728 |
| 3,489 |
| 417 |
| 2005 |
|
El Paso VI, TX |
| 36,620 |
| (B) |
| 660 |
| 607 |
| 94 |
| 662 |
| 700 |
| 1,361 |
| 175 |
| 2005 |
|
El Paso VII, TX |
| 34,545 |
| (B) |
| 563 |
| 517 |
| 71 |
| 565 |
| 587 |
| 1,152 |
| 146 |
| 2005 |
|
Fort Worth I, TX |
| 49,778 |
| (K) |
| 1,253 |
| 1,141 |
| 124 |
| 1,253 |
| 1,265 |
| 2,518 |
| 298 |
| 2005 |
|
Fort Worth II, TX |
| 72,925 |
| (K) |
| 868 |
| 4,607 |
| 161 |
| 874 |
| 4,761 |
| 5,636 |
| 919 |
| 2006 |
|
Frisco I, TX |
| 50,854 |
| (A) |
| 1,093 |
| 3,148 |
| 75 |
| 1,093 |
| 3,223 |
| 4,315 |
| 780 |
| 2005 |
|
Frisco II, TX |
| 71,239 |
| 3,281 |
| 1,564 |
| 4,507 |
| 111 |
| 1,564 |
| 4,618 |
| 6,183 |
| 1,118 |
| 2005 |
|
Frisco III, TX |
| 75,215 |
| (K) |
| 1,147 |
| 6,088 |
| 139 |
| 1,154 |
| 6,221 |
| 7,374 |
| 1,202 |
| 2006 |
|
Garland I, TX |
| 70,100 |
| 3,163 |
| 751 |
| 3,984 |
| 350 |
| 767 |
| 4,318 |
| 5,085 |
| 742 |
| 2006 |
|
Garland II, TX |
| 68,425 |
| (K) |
| 862 |
| 4,578 |
| 117 |
| 862 |
| 4,695 |
| 5,557 |
| 767 |
| 2006 |
|
Greenville I, TX |
| 59,385 |
| (T) |
| 1,848 |
| 1,682 |
| 66 |
| 1,848 |
| 1,748 |
| 3,596 |
| 416 |
| 2005 |
|
Greenville II, TX |
| 44,900 |
| (T) |
| 1,337 |
| 1,217 |
| 69 |
| 1,337 |
| 1,286 |
| 2,622 |
| 304 |
| 2005 |
|
Houston I, TX |
| 100,820 |
| (T) |
| 1,420 |
| 1,296 |
| 139 |
| 1,422 |
| 1,433 |
| 2,855 |
| 353 |
| 2005 |
|
Houston II, TX |
| 71,300 |
| (T) |
| 1,510 |
| 1,377 |
| (11 | ) | 1,512 |
| 1,364 |
| 2,876 |
| 365 |
| 2005 |
|
Houston III, TX |
| 61,145 |
| 516 |
| 575 |
| 524 |
| 189 |
| 576 |
| 712 |
| 1,288 |
| 171 |
| 2005 |
|
Houston IV, TX |
| 43,775 |
| (H) |
| 960 |
| 875 |
| 96 |
| 961 |
| 970 |
| 1,931 |
| 235 |
| 2005 |
|
Houston V, TX |
| 126,080 |
| 4,246 |
| 1,153 |
| 6,122 |
| 315 |
| 1,156 |
| 6,434 |
| 7,590 |
| 1,094 |
| 2006 |
|
Keller, TX |
| 61,885 |
| 2,486 |
| 890 |
| 4,727 |
| 98 |
| 890 |
| 4,825 |
| 5,715 |
| 946 |
| 2006 |
|
La Porte, TX |
| 45,050 |
| (T) |
| 842 |
| 761 |
| 295 |
| 843 |
| 1,055 |
| 1,898 |
| 248 |
| 2005 |
|
Lewisville, TX |
| 58,140 |
| 1,808 |
| 476 |
| 2,525 |
| 270 |
| 492 |
| 2,779 |
| 3,271 |
| 488 |
| 2006 |
|
Mansfield, TX |
| 63,075 |
| (K) |
| 837 |
| 4,443 |
| 87 |
| 843 |
| 4,523 |
| 5,367 |
| 878 |
| 2006 |
|
McKinney I, TX |
| 46,940 |
| 1,307 |
| 1,632 |
| 1,486 |
| 79 |
| 1,634 |
| 1,563 |
| 3,197 |
| 363 |
| 2005 |
|
McKinney II, TX |
| 70,050 |
| 4,166 |
| 855 |
| 5,076 |
| 88 |
| 857 |
| 5,162 |
| 6,019 |
| 1,015 |
| 2006 |
|
North Richland Hills, TX |
| 57,175 |
| (K) |
| 2,252 |
| 2,049 |
| 143 |
| 2,252 |
| 2,192 |
| 4,444 |
| 518 |
| 2005 |
|
Roanoke, TX |
| 59,300 |
| (K) |
| 1,337 |
| 1,217 |
| 99 |
| 1,337 |
| 1,316 |
| 2,653 |
| 315 |
| 2005 |
|
San Antonio I, TX |
| 73,530 |
| (T) |
| 2,895 |
| 2,635 |
| 147 |
| 2,895 |
| 2,782 |
| 5,677 |
| 630 |
| 2005 |
|
San Antonio II, TX |
| 73,280 |
| (T) |
| 1,047 |
| 5,558 |
| 83 |
| 1,052 |
| 5,636 |
| 6,688 |
| 924 |
| 2006 |
|
San Antonio III, TX |
| 71,775 |
| (T) |
| 996 |
| 5,286 |
| 41 |
| 996 |
| 5,327 |
| 6,322 |
| 800 |
| 2007 |
|
Sherman I, TX |
| 54,975 |
| 1,520 |
| 1,904 |
| 1,733 |
| 75 |
| 1,906 |
| 1,806 |
| 3,712 |
| 421 |
| 2005 |
|
Sherman II, TX |
| 48,425 |
| 1,812 |
| 1,337 |
| 1,217 |
| 110 |
| 1,337 |
| 1,327 |
| 2,664 |
| 310 |
| 2005 |
|
Spring, TX |
| 72,751 |
| (T) |
| 580 |
| 3,081 |
| 87 |
| 580 |
| 3,168 |
| 3,749 |
| 621 |
| 2006 |
|
SCHEDULE III, continuedTable of Contents
|
|
|
| Initial Cost |
|
|
| Gross Carrying Amount |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Morris Township, NJ |
| (D) |
| 500 |
| 5,602 |
| 2,388 |
| 1,072 |
| 7,418 |
| 8,490 |
| 1,795 |
| 1997 |
|
Parsippany, NJ |
|
|
| 475 |
| 5,322 |
| 1,869 |
| 909 |
| 6,757 |
| 7,666 |
| 1,694 |
| 1997 |
|
Randolph, NJ |
| (D) |
| 855 |
| 4,872 |
| 1,201 |
| 1,108 |
| 5,820 |
| 6,928 |
| 1,615 |
| 2002 |
|
Sewell, NJ |
| (F) |
| 484 |
| 2,766 |
| 1,085 |
| 706 |
| 3,628 |
| 4,335 |
| 1,021 |
| 2001 |
|
Albuquerque, NM |
| (C) |
| 1,039 |
| 3,395 |
| 144 |
| 1,039 |
| 3,538 |
| 4,578 |
| 299 |
| 2005 |
|
Albuquerque, NM |
| (C) |
| 1,163 |
| 3,801 |
| 115 |
| 1,163 |
| 3,916 |
| 5,079 |
| 329 |
| 2005 |
|
Albuquerque, NM |
| (C) |
| 664 |
| 2,171 |
| 142 |
| 664 |
| 2,312 |
| 2,977 |
| 194 |
| 2005 |
|
Albuquerque, NM |
| 1,634 |
| 519 |
| 1,697 |
| 124 |
| 519 |
| 1,821 |
| 2,340 |
| 153 |
| 2005 |
|
Albuquerque, NM |
|
|
| 915 |
| 2,996 |
| 94 |
| 915 |
| 3,090 |
| 4,006 |
| 167 |
| 2006 |
|
Carlsbad, NM |
| (B) |
| 490 |
| 1,613 |
| 63 |
| 491 |
| 1,675 |
| 2,166 |
| 139 |
| 2005 |
|
Deming, NM |
| (B) |
| 338 |
| 1,114 |
| 73 |
| 339 |
| 1,186 |
| 1,525 |
| 98 |
| 2005 |
|
Las Cruces, NM |
| (B) |
| 611 |
| 2,012 |
| 86 |
| 612 |
| 2,097 |
| 2,709 |
| 174 |
| 2005 |
|
Lovington, NM |
| (B) |
| 168 |
| 554 |
| 42 |
| 169 |
| 595 |
| 764 |
| 49 |
| 2005 |
|
Silver City, NM |
| (B) |
| 153 |
| 504 |
| 58 |
| 153 |
| 562 |
| 715 |
| 48 |
| 2005 |
|
Truth or Consequences, NM |
| (B) |
| 10 |
| 34 |
| 46 |
| 11 |
| 80 |
| 91 |
| 9 |
| 2005 |
|
Las Vegas, NV |
|
|
| 1,851 |
| 2,986 |
| 65 |
| 1,851 |
| 3,051 |
| 4,902 |
| 146 |
| 2006 |
|
Las Vegas, NV |
|
|
| 3,354 |
| 5,411 |
| 54 |
| 3,355 |
| 5,464 |
| 8,819 |
| 261 |
| 2006 |
|
Endicott, NY |
|
|
| 779 |
| 838 |
| 34 |
| 779 |
| 872 |
| 1,651 |
| 93 |
| 2005 |
|
Jamaica, NY |
| (D) |
| 2,043 |
| 11,658 |
| 283 |
| 2,043 |
| 11,941 |
| 13,984 |
| 3,662 |
| 2001 |
|
New Rochelle, NY |
| (A) |
| 1,673 |
| 4,827 |
| 72 |
| 1,673 |
| 4,899 |
| 6,572 |
| 423 |
| 2005 |
|
North Babylon, NY |
| (F) |
| 225 |
| 2,514 |
| 3,831 |
| 568 |
| 6,002 |
| 6,570 |
| 1,503 |
| 1998 |
|
Riverhead, NY |
|
|
| 1,068 |
| 1,149 |
| 58 |
| 1,068 |
| 1,207 |
| 2,275 |
| 129 |
| 2005 |
|
Southold, NY |
|
|
| 2,079 |
| 2,238 |
| 113 |
| 2,079 |
| 2,351 |
| 4,430 |
| 245 |
| 2005 |
|
Avon, OH |
|
|
| 1,012 |
| 2,252 |
| 62 |
| 1,012 |
| 2,314 |
| 3,326 |
| 168 |
| 2005 |
|
Boardman, OH |
| (F) |
| 64 |
| 745 |
| 2,092 |
| 287 |
| 2,614 |
| 2,901 |
| 1,191 |
| 1980 |
|
Brecksville, OH |
|
|
| 228 |
| 2,545 |
| 944 |
| 442 |
| 3,275 |
| 3,717 |
| 766 |
| 1998 |
|
Canton, OH |
|
|
| 138 |
| 679 |
| 101 |
| 137 |
| 781 |
| 918 |
| 74 |
| 2005 |
|
Canton, OH |
|
|
| 122 |
| 595 |
| 85 |
| 120 |
| 682 |
| 802 |
| 63 |
| 2005 |
|
Centerville, OH |
| (J) |
| 471 |
| 3,705 |
| 57 |
| 471 |
| 3,762 |
| 4,233 |
| 420 |
| 2004 |
|
Centerville, OH |
| (E) |
| 332 |
| 1,757 |
| 40 |
| 332 |
| 1,797 |
| 2,129 |
| 202 |
| 2004 |
|
Cleveland, OH |
|
|
| 525 |
| 2,592 |
| 102 |
| 524 |
| 2,695 |
| 3,219 |
| 254 |
| 2005 |
|
Cleveland, OH |
|
|
| 290 |
| 1,427 |
| 128 |
| 289 |
| 1,556 |
| 1,845 |
| 150 |
| 2005 |
|
Columbus, OH |
|
|
| 1,234 |
| 3,151 |
| 86 |
| 1,239 |
| 3,232 |
| 4,470 |
| 74 |
| 2006 |
|
Dayton, OH |
|
|
| 441 |
| 2,176 |
| 100 |
| 440 |
| 2,276 |
| 2,717 |
| 213 |
| 2005 |
|
Dayton, OH |
| (E) |
| 323 |
| 2,070 |
| 47 |
| 323 |
| 2,117 |
| 2,440 |
| 238 |
| 2004 |
|
Euclid I, OH |
|
|
| 200 |
| 1,053 |
| 1,866 |
| 317 |
| 2,802 |
| 3,119 |
| 1,298 |
| 1988 |
|
Euclid II, OH |
|
|
| 359 |
| — |
| 1,597 |
| 461 |
| 1,495 |
| 1,956 |
| 296 |
| 1988 |
|
Grove City, OH |
|
|
| 1,756 |
| 4,485 |
| 56 |
| 1,761 |
| 4,536 |
| 6,297 |
| 104 |
| 2006 |
|
Hilliard, OH |
|
|
| 1,361 |
| 3,476 |
| 49 |
| 1,366 |
| 3,519 |
| 4,885 |
| 81 |
| 2006 |
|
Hudson, OH |
|
|
| 195 |
| 2,198 |
| 434 |
| 274 |
| 2,553 |
| 2,827 |
| 639 |
| 1998 |
|
Lakewood, OH |
|
|
| 405 |
| 854 |
| 392 |
| 405 |
| 1,246 |
| 1,651 |
| 630 |
| 1989 |
|
Louisville, OH |
|
|
| 257 |
| 1,260 |
| 65 |
| 255 |
| 1,327 |
| 1,582 |
| 127 |
| 2005 |
|
Marblehead, OH |
|
|
| 374 |
| 1,843 |
| 107 |
| 373 |
| 1,951 |
| 2,324 |
| 181 |
| 2005 |
|
Mason, OH |
|
|
| 127 |
| 1,419 |
| 38 |
| 149 |
| 1,435 |
| 1,584 |
| 396 |
| 1998 |
|
Mentor, OH |
|
|
| 206 |
| 1,011 |
| 1,192 |
| 204 |
| 2,205 |
| 2,409 |
| 103 |
| 2005 |
|
Miamisburg, OH |
| (J) |
| 375 |
| 2,410 |
| 92 |
| 375 |
| 2,502 |
| 2,877 |
| 280 |
| 2004 |
|
Middleburg Heights, OH |
|
|
| 63 |
| 704 |
| 1,855 |
| 332 |
| 2,290 |
| 2,622 |
| 515 |
| 1980 |
|
North Canton I, OH |
|
|
| 209 |
| 846 |
| 467 |
| 299 |
| 1,222 |
| 1,522 |
| 734 |
| 1979 |
|
North Canton II, OH |
|
|
| 70 |
| 1,226 |
| (32 | ) | 239 |
| 1,025 |
| 1,264 |
| 188 |
| 1983 |
|
North Olmsted I, OH |
|
|
| 63 |
| 704 |
| 1,118 |
| 214 |
| 1,671 |
| 1,885 |
| 452 |
| 1979 |
|
North Olmsted II, OH |
| (F) |
| 290 |
| 1,129 |
| 1,009 |
| 469 |
| 1,959 |
| 2,428 |
| 812 |
| 1988 |
|
North Randall, OH |
| (F) |
| 515 |
| 2,323 |
| 2,758 |
| 898 |
| 4,698 |
| 5,596 |
| 1,060 |
| 1998 |
|
Perry, OH |
|
|
| 290 |
| 1,427 |
| 65 |
| 288 |
| 1,494 |
| 1,782 |
| 145 |
| 2005 |
|
|
|
|
|
|
|
|
|
|
| Gross Carrying Amount |
|
|
|
|
| ||||||
|
|
|
|
|
| Initial Cost |
|
|
| at December 31, 2009 |
|
|
|
|
| ||||||
Description |
| Square Footage |
| Encumbrances |
| Land |
| Building |
| Costs |
| Land |
| Building and |
| Total |
| Accumulated |
| Year Acquired / |
|
Murray I, UT |
| 60,180 |
| (C) |
| 3,847 |
| 1,017 |
| 222 |
| 3,848 |
| 1,237 |
| 5,085 |
| 301 |
| 2005 |
|
Murray II, UT |
| 71,222 |
| (C) |
| 2,147 |
| 567 |
| 300 |
| 2,148 |
| 866 |
| 3,014 |
| 113 |
| 2005 |
|
Salt Lake City I, UT |
| 56,446 |
| (C) |
| 2,695 |
| 712 |
| 194 |
| 2,696 |
| 905 |
| 3,601 |
| 230 |
| 2005 |
|
Salt Lake City II, UT |
| 53,676 |
| (C) |
| 2,074 |
| 548 |
| 174 |
| 2,075 |
| 721 |
| 2,796 |
| 183 |
| 2005 |
|
Fredericksburg I, VA |
| 69,475 |
| (P) |
| 1,680 |
| 4,840 |
| 252 |
| 1,680 |
| 5,092 |
| 6,772 |
| 1,044 |
| 2005 |
|
Fredericksburg II, VA |
| 61,207 |
| (P) |
| 1,757 |
| 5,062 |
| 313 |
| 1,758 |
| 5,374 |
| 7,132 |
| 1,092 |
| 2005 |
|
Milwaukee, WI |
| 58,515 |
| (T) |
| 375 |
| 4,333 |
| 131 |
| 375 |
| 4,464 |
| 4,839 |
| 1,188 |
| 2004 |
|
USIFB |
|
|
|
|
|
|
| 7,057 |
| 791 |
| — |
| 7,848 |
| 7,848 |
| 307 |
|
|
|
Corporate Office |
|
|
|
|
|
|
|
|
|
|
|
|
| 11,015 |
| 11,015 |
| 3,748 |
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 23,748,702 |
|
|
| 343,312 |
| 1,251,704 |
| 169,351 |
| 369,842 |
| 1,404,700 |
| 1,774,542 |
| 344,009 |
|
|
|
SCHEDULE III, continued
|
|
|
| Initial Cost |
|
|
| Gross Carrying Amount |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Reynoldsburg, OH |
|
|
| 1,290 |
| 3,295 |
| 51 |
| 1,295 |
| 3,341 |
| 4,637 |
| 77 |
| 2006 |
|
Warrensville Heights, OH |
|
|
| 525 |
| 766 |
| 2,812 |
| 935 |
| 3,168 |
| 4,103 |
| 617 |
| 1980 |
|
Westlake, OH |
|
|
| 509 |
| 2,508 |
| 115 |
| 508 |
| 2,625 |
| 3,132 |
| 250 |
| 2005 |
|
Willoughby, OH |
|
|
| 239 |
| 1,178 |
| 77 |
| 238 |
| 1,256 |
| 1,494 |
| 122 |
| 2005 |
|
Youngstown, OH |
| (A) |
| 67 |
| — |
| 1,635 |
| 204 |
| 1,499 |
| 1,702 |
| 770 |
| 1977 |
|
Levittown, PA |
| (F) |
| 926 |
| 5,296 |
| 782 |
| 926 |
| 6,078 |
| 7,004 |
| 1,735 |
| 2001 |
|
Philadelphia, PA |
| (D) |
| 1,461 |
| 8,334 |
| 569 |
| 1,461 |
| 8,904 |
| 10,364 |
| 3,454 |
| 2001 |
|
Hilton Head I, SC |
|
|
| 129 |
| 1,446 |
| 6,529 |
| 798 |
| 7,306 |
| 8,104 |
| 1,854 |
| 1997 |
|
Hilton Head II, SC |
|
|
| 150 |
| 1,767 |
| 1,012 |
| 320 |
| 2,608 |
| 2,929 |
| 787 |
| 1997 |
|
Summerville, SC |
|
|
| 143 |
| 1,643 |
| 521 |
| 313 |
| 1,994 |
| 2,307 |
| 468 |
| 1998 |
|
Alcoa, TN |
| (K) |
| 254 |
| 2,113 |
| 59 |
| 254 |
| 2,171 |
| 2,425 |
| 170 |
| 2005 |
|
Antioch, TN |
|
|
| 588 |
| 4,906 |
| 97 |
| 588 |
| 5,003 |
| 5,591 |
| 279 |
| 2005 |
|
Cordova, TN |
| (G) |
| 296 |
| 2,482 |
| 137 |
| 297 |
| 2,619 |
| 2,915 |
| 206 |
| 2005 |
|
Cordova, TN |
|
|
| 429 |
| 3,580 |
| 46 |
| 429 |
| 3,625 |
| 4,054 |
| 134 |
| 2006 |
|
Knoxville I, TN |
|
|
| 99 |
| 1,113 |
| 89 |
| 102 |
| 1,199 |
| 1,301 |
| 339 |
| 1997 |
|
Knoxville II, TN |
|
|
| 117 |
| 1,308 |
| 147 |
| 129 |
| 1,443 |
| 1,572 |
| 390 |
| 1997 |
|
Knoxville III, TN |
|
|
| 182 |
| 2,053 |
| 546 |
| 331 |
| 2,451 |
| 2,781 |
| 571 |
| 1998 |
|
Knoxville IV, TN |
|
|
| 158 |
| 1,771 |
| 574 |
| 310 |
| 2,194 |
| 2,503 |
| 480 |
| 1998 |
|
Knoxville V, TN |
|
|
| 134 |
| 1,493 |
| 332 |
| 235 |
| 1,725 |
| 1,959 |
| 436 |
| 1998 |
|
Knoxville, TN |
| (K) |
| 439 |
| 3,653 |
| 73 |
| 440 |
| 3,725 |
| 4,164 |
| 293 |
| 2005 |
|
Knoxville, TN |
| (K) |
| 312 |
| 2,594 |
| 72 |
| 312 |
| 2,665 |
| 2,977 |
| 210 |
| 2005 |
|
Knoxville, TN |
| (K) |
| 585 |
| 4,869 |
| 101 |
| 586 |
| 4,969 |
| 5,555 |
| 390 |
| 2005 |
|
Memphis I, TN |
| (E) |
| 677 |
| 3,880 |
| 993 |
| 677 |
| 4,873 |
| 5,550 |
| 1,373 |
| 2001 |
|
Memphis II, TN |
|
|
| 395 |
| 2,276 |
| 132 |
| 395 |
| 2,407 |
| 2,803 |
| 760 |
| 2001 |
|
Memphis, TN |
| (G) |
| 212 |
| 1,779 |
| 126 |
| 213 |
| 1,905 |
| 2,118 |
| 152 |
| 2005 |
|
Memphis, TN |
| (G) |
| 160 |
| 1,342 |
| 94 |
| 160 |
| 1,436 |
| 1,596 |
| 115 |
| 2005 |
|
Memphis, TN |
| (G) |
| 209 |
| 1,753 |
| 248 |
| 210 |
| 2,001 |
| 2,210 |
| 149 |
| 2005 |
|
Memphis, TN |
|
|
| 462 |
| 3,851 |
| 194 |
| 462 |
| 4,045 |
| 4,507 |
| 145 |
| 2006 |
|
Memphis, TN |
|
|
| 215 |
| 1,792 |
| 188 |
| 215 |
| 1,980 |
| 2,194 |
| 71 |
| 2006 |
|
Memphis, TN |
|
|
| 355 |
| 2,959 |
| 97 |
| 355 |
| 3,056 |
| 3,411 |
| 112 |
| 2006 |
|
Nashville, TN |
|
|
| 405 |
| 3,379 |
| 146 |
| 405 |
| 3,525 |
| 3,930 |
| 195 |
| 2005 |
|
Nashville, TN |
|
|
| 593 |
| 4,950 |
| 101 |
| 593 |
| 5,050 |
| 5,644 |
| 279 |
| 2005 |
|
Nashville, TN |
|
|
| 416 |
| 3,469 |
| 128 |
| 416 |
| 3,597 |
| 4,013 |
| 183 |
| 2006 |
|
Nashville, TN |
|
|
| 992 |
| 8,274 |
| 96 |
| 992 |
| 8,371 |
| 9,363 |
| 426 |
| 2006 |
|
Austin, TX |
|
|
| 2,239 |
| 2,038 |
| 17 |
| 2,239 |
| 2,054 |
| 4,293 |
| 141 |
| 2005 |
|
Austin, TX |
|
|
| 1,030 |
| 5,468 |
| 80 |
| 1,035 |
| 5,543 |
| 6,578 |
| 138 |
| 2006 |
|
Austin, TX |
|
|
| 734 |
| 3,894 |
| 73 |
| 738 |
| 3,963 |
| 4,701 |
| 164 |
| 2006 |
|
Baytown, TX |
| (L) |
| 946 |
| 863 |
| 38 |
| 948 |
| 900 |
| 1,848 |
| 74 |
| 2005 |
|
Bryan, TX |
| (L) |
| 1,394 |
| 1,268 |
| 36 |
| 1,396 |
| 1,302 |
| 2,698 |
| 108 |
| 2005 |
|
College Station, TX |
| (I) |
| 812 |
| 740 |
| 31 |
| 813 |
| 769 |
| 1,583 |
| 61 |
| 2005 |
|
Dallas, TX |
|
|
| 2,475 |
| 2,253 |
| 51 |
| 2,475 |
| 2,304 |
| 4,779 |
| 158 |
| 2005 |
|
Denton, TX |
| 2,096 |
| 553 |
| 2,936 |
| 58 |
| 569 |
| 2,978 |
| 3,547 |
| 63 |
| 2006 |
|
El Paso, TX |
| (C) |
| 1,983 |
| 1,805 |
| 82 |
| 1,984 |
| 1,886 |
| 3,870 |
| 148 |
| 2005 |
|
El Paso, TX |
| (C) |
| 1,319 |
| 1,201 |
| 57 |
| 1,320 |
| 1,257 |
| 2,577 |
| 97 |
| 2005 |
|
El Paso, TX |
| (C) |
| 2,408 |
| 2,192 |
| 84 |
| 2,409 |
| 2,275 |
| 4,684 |
| 175 |
| 2005 |
|
El Paso, TX |
| (C) |
| 2,073 |
| 1,888 |
| 101 |
| 2,074 |
| 1,988 |
| 4,063 |
| 152 |
| 2005 |
|
El Paso, TX |
| (B) |
| 1,758 |
| 1,617 |
| 22 |
| 1,761 |
| 1,636 |
| 3,397 |
| 126 |
| 2005 |
|
El Paso, TX |
| (B) |
| 660 |
| 607 |
| 46 |
| 662 |
| 652 |
| 1,314 |
| 51 |
| 2005 |
|
El Paso, TX |
| (B) |
| 563 |
| 517 |
| 39 |
| 565 |
| 555 |
| 1,120 |
| 43 |
| 2005 |
|
Fort Worth, TX |
|
|
| 1,253 |
| 1,141 |
| 32 |
| 1,253 |
| 1,173 |
| 2,426 |
| 80 |
| 2005 |
|
Fort Worth, TX |
|
|
| 868 |
| 4,607 |
| 40 |
| 874 |
| 4,641 |
| 5,515 |
| 194 |
| 2006 |
|
Frisco, TX |
| (A) |
| 1,093 |
| 3,148 |
| 23 |
| 1,093 |
| 3,171 |
| 4,264 |
| 273 |
| 2005 |
|
Frisco, TX |
| 3,513 |
| 1,564 |
| 4,507 |
| 38 |
| 1,564 |
| 4,545 |
| 6,109 |
| 391 |
| 2005 |
|
SCHEDULE III, continued
|
|
|
| Initial Cost |
|
|
| Gross Carrying Amount |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| Encum- |
|
|
| Building and |
| Subsequent to |
|
|
| Building and |
|
|
| Accumulated |
| Year Acquired / |
|
Description |
| brances |
| Land |
| Improvements |
| Acquisition |
| Land |
| Improvements |
| Total |
| Depreciation |
| Developed |
|
Frisco, TX |
|
|
| 1,147 |
| 6,088 |
| 45 |
| 1,154 |
| 6,127 |
| 7,280 |
| 256 |
| 2006 |
|
Garland, TX |
|
|
| 862 |
| 4,578 |
| 16 |
| 862 |
| 4,594 |
| 5,456 |
| 58 |
| 2006 |
|
Garland, TX |
| 3,334 |
| 751 |
| 3,984 |
| 62 |
| 767 |
| 4,031 |
| 4,797 |
| 84 |
| 2006 |
|
Greenville, TX |
|
|
| 1,848 |
| 1,682 |
| 32 |
| 1,848 |
| 1,714 |
| 3,562 |
| 118 |
| 2005 |
|
Greenville, TX |
|
|
| 1,337 |
| 1,217 |
| 21 |
| 1,337 |
| 1,238 |
| 2,575 |
| 86 |
| 2005 |
|
Houston, TX |
| (L) |
| 1,420 |
| 1,296 |
| 86 |
| 1,422 |
| 1,380 |
| 2,803 |
| 112 |
| 2005 |
|
Houston, TX |
| (L) |
| 1,510 |
| 1,377 |
| 119 |
| 1,512 |
| 1,494 |
| 3,006 |
| 120 |
| 2005 |
|
Houston, TX |
| 561 |
| 575 |
| 524 |
| 73 |
| 576 |
| 596 |
| 1,172 |
| 46 |
| 2005 |
|
Houston, TX |
| (I) |
| 960 |
| 875 |
| 66 |
| 961 |
| 940 |
| 1,901 |
| 73 |
| 2005 |
|
Houston, TX |
| 4,583 |
| 1,153 |
| 6,122 |
| 94 |
| 1,156 |
| 6,213 |
| 7,369 |
| 103 |
| 2006 |
|
Keller, TX |
| 2,660 |
| 890 |
| 4,727 |
| 26 |
| 890 |
| 4,753 |
| 5,643 |
| 218 |
| 2006 |
|
La Porte, TX |
| (L) |
| 842 |
| 761 |
| 86 |
| 843 |
| 846 |
| 1,689 |
| 68 |
| 2005 |
|
Lewisville, TX |
| 1,905 |
| 476 |
| 2,525 |
| 75 |
| 492 |
| 2,584 |
| 3,076 |
| 54 |
| 2006 |
|
Mansfield, TX |
|
|
| 837 |
| 4,443 |
| 42 |
| 843 |
| 4,478 |
| 5,322 |
| 187 |
| 2006 |
|
McKinney, TX |
| 1,404 |
| 1,632 |
| 1,486 |
| 53 |
| 1,634 |
| 1,537 |
| 3,171 |
| 98 |
| 2005 |
|
McKinney, TX |
| 4,367 |
| 855 |
| 5,076 |
| 34 |
| 857 |
| 5,108 |
| 5,965 |
| 235 |
| 2006 |
|
North Richland Hills, TX |
|
|
| 2,252 |
| 2,049 |
| 18 |
| 2,252 |
| 2,067 |
| 4,319 |
| 142 |
| 2005 |
|
Roanoke, TX |
|
|
| 1,337 |
| 1,217 |
| 38 |
| 1,337 |
| 1,255 |
| 2,592 |
| 87 |
| 2005 |
|
San Antonio, TX |
|
|
| 2,895 |
| 2,635 |
| 12 |
| 2,895 |
| 2,647 |
| 5,542 |
| 170 |
| 2005 |
|
San Antonio, TX |
|
|
| 1,047 |
| 5,558 |
| 17 |
| 1,052 |
| 5,570 |
| 6,622 |
| 70 |
| 2006 |
|
Sherman, TX |
| 1,634 |
| 1,904 |
| 1,733 |
| 38 |
| 1,906 |
| 1,770 |
| 3,676 |
| 114 |
| 2005 |
|
Sherman, TX |
| 1,952 |
| 1,337 |
| 1,217 |
| 25 |
| 1,337 |
| 1,242 |
| 2,579 |
| 80 |
| 2005 |
|
Spring, TX |
|
|
| 580 |
| 3,081 |
| 17 |
| 580 |
| 3,099 |
| 3,679 |
| 142 |
| 2006 |
|
Murray, UT |
| (C) |
| 3,847 |
| 1,017 |
| 110 |
| 3,848 |
| 1,126 |
| 4,974 |
| 89 |
| 2005 |
|
Murray, UT |
| (C) |
| 1,182 |
| 312 |
| 72 |
| 1,182 |
| 383 |
| 1,566 |
| 29 |
| 2005 |
|
Murray, UT |
| (C) |
| 965 |
| 255 |
| 89 |
| 965 |
| 343 |
| 1,309 |
| 24 |
| 2005 |
|
Salt Lake City, UT |
| (C) |
| 2,695 |
| 712 |
| 141 |
| 2,696 |
| 852 |
| 3,548 |
| 67 |
| 2005 |
|
Salt Lake City, UT |
| (C) |
| 2,074 |
| 548 |
| 117 |
| 2,075 |
| 664 |
| 2,739 |
| 51 |
| 2005 |
|
Fredericksburg, VA |
|
|
| 1,680 |
| 4,840 |
| 66 |
| 1,680 |
| 4,670 |
| 6,350 |
| 251 |
| 2005 |
|
Fredericksburg, VA |
|
|
| 1,757 |
| 5,062 |
| 33 |
| 1,758 |
| 4,858 |
| 6,617 |
| 262 |
| 2005 |
|
Milwaukee, WI |
| (J) |
| 375 |
| 4,333 |
| 96 |
| 375 |
| 4,429 |
| 4,804 |
| 495 |
| 2004 |
|
Corporate Office, OH |
|
|
| — |
| — |
| 4,173 |
| — |
| 4,173 |
| 4,173 |
| 1,679 |
| 1977 |
|
Construction in Progress |
|
|
| — |
| — |
| 1,482 |
| — |
| 1,482 |
| 1,482 |
|
|
|
|
|
|
|
|
| 339,679 |
| 1,226,195 |
| 205,518 |
| 370,196 |
| 1,401,668 |
| 1,771,864 |
| 205,049 |
|
|
|
(A) This facility is part of Yasky Loan portfolio, with a balance of $80,000 as of December 31, 2006.2009.
(B) This facility is part of the YSI XXV25 Loan portfolio, with a balance of $8,304$7,975 as of December 31, 2006.2009.
(C) This facility is part of the YSI XX20 Loan portfolio, with a balance of $71,505$64,258 as of December 31, 2006.2009.
(D) This facility is part of the YSI II2 Loan portfolio, with a balance of $88,400$83,480 as of December 31, 2006.2009.
(E) This facility is part of the YSI VI6 Loan portfolio, with a balance of $80,000$77,370 as of December 31, 2006.2009.
(F) This facility is part of the YSI I1 Loan portfolio, with a balance of $88,362$83,342 as of December 31, 2006.2009. This property became unencumbered on February 11, 2010 when the YSI 1 loan was repaid.
(G) This facility is part of the YSI XXVI26 Loan portfolio, with a balance of $10,176$9,475 as of December 31, 2006.2009.
(H) This facility is part of the YSI XVI28 Loan portfolio, with a balance of $14,261$1,598 as of December 31, 2006.
(I) This facility is part of the YSI XXVIII Loan portfolio, with a balance of $1,712 as of December 31, 2006.2009.
(J) This facility is part of the YSI III30 Loan portfolio, with a balance of $88,332$7,567 as of December 31, 2006.2009.
(K) This facility is part of the YSI XXX34 Loan portfolio,protfolio, with a balance of $8,233$14,955 as of December 31, 2006.2009
(L) This facility is part of the YSI XXIX Loan portfolio, with a balance of $4,374 as of December 31, 2006.
(M) Depreciation on the buildings and improvements is recorded on a straight-line basis over their estimated useful lives, which range from five to 4039 years.
(M) This facility is part of the YSI 31 Loan portfolio, with a balance of $13,891 as of December 31, 2009.
(N) This facility is part of the YSI 32 Loan portfolio, with a balance of $6,160 as of December 31, 2009.
(O) This facility is part of the YSI 33 Loan portfolio, with a balance of $11,570 as of December 31, 2009.
(P) This facility is part of the YSI 35 Loan portfolio, with a balance of $4,499 as of December 31, 2009.
(Q) This facility is part of the YSI 41 Loan portfolio, with a balance of $3,976 as of December 31, 2009.
(R) This facility is part of the YSI 38 Loan portfolio, with a balance of $4,078 as of December 31, 2009.
(S) This facility is part of the YSI 48 Loan portfolio, with a balance of $25,652 as of December 31, 2009.
(T) This facility is part of the USILP secured credit facility portfolio, with a balance of $200,000 as of December 31, 2009.
Activity in real estate facilities during 2006, 20052009, 2008, and 20042007 was as follows (in thousands):
|
| 2006 |
| 2005 |
| 2004 |
| |||
Storage facilities |
|
|
|
|
|
|
| |||
Balance at beginning of year |
| $ | 1,386,786 |
| $ | 851,628 |
| $ | 495,181 |
|
Acquisitions & improvements |
| 384,130 |
| 564,305 |
| 228,500 |
| |||
Dispositions and other |
| (534 | ) | (30,530 | ) | (725 | ) | |||
Contstruction in progress |
| 1,482 |
| 1,383 |
| — |
| |||
Step up adjustment |
| — |
| — |
| 128,672 |
| |||
Balance at end of year |
| $ | 1,771,864 |
| $ | 1,386,786 |
| $ | 851,628 |
|
|
|
|
|
|
|
|
| |||
Accumulated depreciation |
|
|
|
|
|
|
| |||
Balance at beginning of year |
| $ | 140,491 |
| $ | 122,473 |
| $ | 99,582 |
|
Depreciation expense |
| 64,729 |
| 39,949 |
| 22,328 |
| |||
Dispositions and other |
| (171 | ) | (21,931 | ) | 563 |
| |||
Balance at end of year |
| $ | 205,049 |
| $ | 140,491 |
| $ | 122,473 |
|
|
|
|
|
|
|
|
| |||
Net Storage facility assets |
| $ | 1,566,815 |
| $ | 1,246,295 |
| $ | 729,155 |
|
|
| 2009 |
| 2008 |
| 2007 |
| |||
Storage facilities |
|
|
|
|
|
|
| |||
Balance at beginning of year |
| $ | 1,888,123 |
| $ | 1,916,396 |
| $ | 1,771,864 |
|
Acquisitions & improvements |
| 13,345 |
| 30,295 |
| 160,256 |
| |||
Fully depreciated assets |
| (40,859 | ) | — |
| — |
| |||
Dispositions and other |
| (89,668 | ) | (59,168 | ) | (21,206 | ) | |||
Contstruction in progress |
| 3,601 |
| 600 |
| 5,482 |
| |||
Balance at end of year |
| $ | 1,774,542 |
| $ | 1,888,123 |
| $ | 1,916,396 |
|
|
|
|
|
|
|
|
| |||
Accumulated depreciation |
|
|
|
|
|
|
| |||
Balance at beginning of year |
| $ | 328,165 |
| $ | 269,278 |
| $ | 205,049 |
|
Depreciation expense |
| 73,569 |
| 77,580 |
| 68,355 |
| |||
Fully depreciated assets |
| (40,859 | ) | — |
| — |
| |||
Dispositions and other |
| (16,866 | ) | (18,693 | ) | (4,126 | ) | |||
Balance at end of year |
| $ | 344,009 |
| $ | 328,165 |
| $ | 269,278 |
|
|
|
|
|
|
|
|
| |||
Net Storage facility assets |
| $ | 1,430,533 |
| $ | 1,559,958 |
| $ | 1,647,118 |
|
The unaudited aggregate costs of storage facility assets for U.S. federal income tax purposes as of
December 31, 2006 is2009 was approximately $1,366$1,346 million.