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 Public Storage Reports Results for the Fourth Quarter and Year Ended December 31, 2015
   Tuesday, February 16, 2016 5:43:00 PM ET

Public Storage (PSA ) announced today operating results for the quarter and year ended December 31, 2015.

Operating Results for the Three Months Ended December 31, 2015

For the three months ended December 31, 2015, net income allocable to our common shareholders was $303.0 million or $1.74 per diluted common share, compared to $284.0 million or $1.64 in 2014 representing an increase of $19.0 million or $0.10. The increase is primarily due to (i) a $39.5 million increase in self-storage net operating income offset partially by (ii) a $30.3 million reduction in equity in earnings of unconsolidated real estate entities, primarily due to a $36.5 million gain recognized from our investment in PS Business Parks, Inc. ("PSB") in the quarter ended December 31, 2014.



The $39.5 million increase in self-storage net operating income is a result of a $29.5 million increase in our Same Store Facilities and a $9.9 million increase in our Non Same Store Facilities. Revenues for the Same Store Facilities increased 6.6% or $31.3 million in the three months ended December 31, 2015 as compared to 2014, due primarily to higher realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 1.7% or $1.8 million in the three months ended December 31, 2015 as compared to 2014, due primarily to increases in snow removal and on-site property manager payroll. The increase in net operating income for the Non Same Store Facilities is due primarily to the impact of the development and acquisition of 202 self-storage facilities since January 2013.

Operating Results for the Year Ended December 31, 2015

For the year ended December 31, 2015, net income allocable to our common shareholders was $1,053.1 million or $6.07 per diluted common share, compared to $908.2 million or $5.25 in 2014 representing an increase of $144.9 million or $0.82 per diluted common share. The increase is primarily due to (i) a $165.8 million increase in self-storage net operating income and (ii) a $16.0 million increase in gains on sale of real estate, offset partially by (iii) a $22.1 million reduction in equity in earnings of PSB due primarily to reduced gains on disposition in 2015 as compared to 2014 and (iv) a $15.6 million reduction in equity in earnings of Shurgard Europe due primarily to a 16% reduction in the average value of the Euro relative to the dollar.

The $165.8 million increase in self-storage net operating income is a result of a $114.1 million increase in our Same Store Facilities and a $51.7 million increase in our Non Same Store Facilities. Revenues for the Same Store Facilities increased 6.5% or $121.2 million in the year ended December 31, 2015 as compared to 2014, due primarily to higher realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 1.4% or $7.1 million in the year ended December 31, 2015 as compared to 2014, due primarily to increases in snow removal and property taxes, offset partially by lower advertising and selling expenses. The increase in net operating income for the Non Same Store Facilities is due primarily to the impact of the development and acquisition of 202 self-storage facilities since January 2013.

Funds from Operations

For the three months ended December 31, 2015, funds from operations ("FFO") was $2.46 per diluted common share, as compared to $2.17 in 2014, representing an increase of $0.29 per share. FFO is a non-GAAP (generally accepted accounting principles) term defined by the National Association of Real Estate Investment Trusts and generally represents net income before depreciation, gains and losses and impairment charges with respect to real estate assets.

For the year ended December 31, 2015, FFO was $8.79 per diluted common share, as compared to $7.98 in 2014, representing an increase of $0.81 per share.

We also present "Core FFO per share," a non-GAAP measure that represents FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) EITF D-42 charges related to the redemption of preferred securities, (iii) property acquisition costs and (iv) certain other items. We believe Core FFO per share is a helpful measure used by investors and REIT analysts to understand our performance. However, Core FFO per share is not a substitute for net income per share. Because other REITs may not compute Core FFO per share in the same manner as we do, may not use the same terminology or may not present such a measure, Core FFO per share may not be comparable among REITs.

The following table reconciles from FFO per share to Core FFO per share (unaudited):

                                                                                                                                                                                                                                
                                                                                                                                                                               Three Months Ended December 31,                                                                                                                                                                                        Year Ended December 31,
                                                                                                          -------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                        Percentage                                                                                                                                                                                              Percentage
                                                                                                                                2015                                                                           2014                                                       Change                                                        2015                                                                2014                                                                  Change
                                                                                                          ------------------------------------------------                                          --------------------------                                          -----------                                          --------------------------                                          --------------------------                                          --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
FFO per share                                                                                                                $  2.46                                                                                   $ 2.17                                            13.4 %                                                                 $ 8.79                                                              $ 7.98                                                 10.2 %
Eliminate the per share impact of items excluded from Core FFO:
                                                                                                                                   -                                                                                        -                                                                                                                        -                                                                0.04
   Foreign currency exchange loss
   Application of EITF D-42                                                                                                        -                                                                                        -                                                                                                                     0.06                                                                   -
   Property acquisition costs                                                                                                      -                                                                                     0.02                                                                                                                     0.04                                                                0.03
   Other items                                                                                              (0.01 )                                                                0.01                                                                                                  0.01                                             0.04
                                                                                                          -------------------- ----- --------------------                                           -------------------- ----                                                                                                -------------------- ----                                           -------------------- ----
Core FFO per share                                                                                                           $  2.45                                                                $ 2.20                                            11.4 %                                                                 $ 8.90                                                              $ 8.09                                                 10.0 %
                                                                                                          ==================== ===== ====================                                           ==================== ====                                                                                                ==================== ====                                           ==================== ====
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

Property Operations - Same Store Facilities

The Same Store Facilities represent those facilities that have been owned and operated on a stabilized basis since January 1, 2013 and therefore provide meaningful comparisons for 2014 and 2015. The following table summarizes the historical operating results of these 1,990 facilities (126.3 million net rentable square feet) that represent approximately 86% of the aggregate net rentable square feet of our U.S. consolidated self-storage portfolio at December 31, 2015.

                                                                                                                                                                                                                                                      
Selected Operating Data for the Same
-------------------------------------------------------------------------------------------
Store Facilities (1,990 facilities)
-------------------------------------------------------------------------------------------
(unaudited):
-------------------------------------------------------------------------------------------
                                                                                                                                                                                                   Three Months Ended December 31,                                                                                                                                                                               Year Ended December 31,
                                                                                                                                      ---------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                    Percentage                                                                                                                                                                                                  Percentage
                                                                                                                                                  2015                                                                   2014                                                         Change                                                          2015                                                                     2014                                                               Change
                                                                                                                                      -----------------------------                                          -----------------------------                                          ----------                                           -------------------------------                                          -------------------------------                                          --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                           (Dollar amounts in thousands, except for per square foot amounts)
Revenues:
Rental income                                                                                                                                            $ 479,585                                                              $ 449,673                                                 6.7%                                                              $ 1,881,154                                                              $ 1,762,601                                                           6.7%
Late charges and administrative fees                                                                                                     23,469                                              22,056                                                 6.4%                                                91,740                                                89,068                                                           3.0%
                                                                                                                                      -------------------- -------                                           -------------------- -------                                           ----------                                           -------------------- ---------                                           -------------------- ---------                                           --------------------
      Total revenues (a)                                                                                                                503,054                                             471,729                                                 6.6%                                             1,972,894                                             1,851,669                                                           6.5%
                                                                                                                                      -------------------- -------                                           -------------------- -------                                           ----------                                           -------------------- ---------                                           -------------------- ---------                                           --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Cost of operations:
   Property taxes                                                                                                                                           27,808                                                                 28,037                                               (0.8)%                                                                  177,004                                                                  170,010                                                           4.1%
   On-site property manager payroll                                                                                                                         22,607                                                                 21,905                                                 3.2%                                                                   99,899                                                                   99,278                                                           0.6%
   Supervisory payroll                                                                                                                                       7,979                                                                  7,851                                                 1.6%                                                                   34,840                                                                   34,193                                                           1.9%
   Repairs and maintenance                                                                                                                                   8,993                                                                  8,734                                                 3.0%                                                                   35,625                                                                   35,768                                                         (0.4)%
   Snow removal                                                                                                                                              1,217                                                                    663                                                83.6%                                                                    9,568                                                                    7,900                                                          21.1%
   Utilities                                                                                                                                                 8,770                                                                  9,303                                               (5.7)%                                                                   38,640                                                                   39,691                                                         (2.6)%
   Advertising and selling expense                                                                                                                           6,398                                                                  6,430                                               (0.5)%                                                                   24,967                                                                   26,911                                                         (7.2)%
   Other direct property costs                                                                                                                              12,790                                                                 12,346                                                 3.6%                                                                   51,906                                                                   50,778                                                           2.2%
   Allocated overhead                                                                                                                     9,786                                               9,291                                                 5.3%                                                37,093                                                37,886                                                         (2.1)%
                                                                                                                                      -------------------- -------                                           -------------------- -------                                           ----------                                           -------------------- ---------                                           -------------------- ---------                                           --------------------
      Total cost of operations (a)                                                                                                      106,348                                             104,560                                                 1.7%                                               509,542                                               502,415                                                           1.4%
                                                                                                                                      -------------------- -------                                           -------------------- -------                                           ----------                                           -------------------- ---------                                           -------------------- ---------                                           --------------------
Net operating income (b)                                                                                                                                 $ 396,706                                                              $ 367,169                                                 8.0%                                                              $ 1,463,352                                                              $ 1,349,254                                                           8.5%
                                                                                                                                      ==================== =======                                           ==================== =======                                           ==========                                           ==================== =========                                           ==================== =========                                           ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Gross margin                                                                                                                                                 78.9%                                                                  77.8%                                                 1.4%                                                                    74.2%                                                                    72.9%                                                           1.8%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Weighted average for the period:
   Square foot occupancy                                                                                                                                     93.9%                                                                  93.5%                                                 0.4%                                                                    94.5%                                                                    93.9%                                                           0.6%
   Realized annual rental income per (c):
      Occupied square foot                                                                                                                               $   16.18                                                              $   15.23                                                 6.2%                                                              $     15.76                                                              $     14.86                                                           6.1%
      Available square foot ("REVPAF")                                                              $   15.18                                                              $   14.24                                                 6.6%                                                              $     14.89                                                              $     13.95                                                           6.7%
At December 31:
   Square foot occupancy                                                                                                                                                                                                                                                                                                                                          92.8%                                                                    92.5%                                                           0.3%
                                                                                                                                                                                                                                                                                                                                                            $     16.75                                                              $     15.82                                                           5.9%
   Annual contract rent per occupied square foot (d)
(a)   Revenues and cost of operations do not include ancillary revenues
                         and expenses generated at the facilities with respect to tenant
                         reinsurance and retail sales.
                          
(b)                      See attached reconciliation of self-storage net operating income
                         ("NOI") to operating income.
                          
(c)                      Realized annual rent per occupied square foot is computed by
                         dividing annualized rental income, before late charges and
                         administrative fees, by the weighted average occupied square feet
                         for the period. Realized annual rent per available square foot
                         ("REVPAF") is computed by dividing annualized rental income, before
                         late charges and administrative fees, by the total available
                         rentable square feet for the period. These measures exclude late
                         charges and administrative fees in order to provide a better measure
                         of our ongoing level of revenue. Late charges are dependent upon the
                         level of delinquency and administrative fees are dependent upon the
                         level of move-ins. In addition, the rates charged for late charges
                         and administrative fees can vary independently from rental rates.
                         These measures take into consideration promotional discounts, which
                         reduce rental income.
                          
(d)                      Contract rent represents the applicable contractual monthly rent
                         charged to our tenants, excluding the impact of promotional
                         discounts, late charges and administrative fees.
                          

The following table summarizes selected quarterly financial data with respect to the Same Store Facilities (unaudited):

                                                                                                                      
                                                                                                                                                                                          For the Quarter Ended
                                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            March 31                                                June 30                                             September 30                                              December 31                                                   Entire Year
                                                                                                          -------------                                          ------------                                          ---------------                                          --------------                                          ---------------------------
                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                         (Amounts in thousands, except for per square foot amounts)
Total revenues:
                                2015                                                                         $ 470,792                                             $ 487,206                                                $ 511,842                                               $ 503,054                                               $            1,972,894
                                2014                                                                         $ 443,848                                             $ 456,203                                                $ 479,889                                               $ 471,729                                               $            1,851,669
                                                                                                                                                                                                                                                                                                                                               
Total cost of operations:
                                2015                                                                         $ 141,997                                             $ 129,073                                                $ 132,124                                               $ 106,348                                               $              509,542
                                2014                                                                         $ 140,429                                             $ 127,717                                                $ 129,709                                               $ 104,560                                               $              502,415
                                                                                                                                                                                                                                                                                                                                               
Property taxes:
                                2015                                                                         $  49,972                                             $  49,821                                                $  49,403                                               $  27,808                                               $              177,004
                                2014                                                                         $  47,967                                             $  47,452                                                $  46,554                                               $  28,037                                               $              170,010
                                                                                                                                                                                                                                                                                                                                               
Repairs and maintenance, including snow removal expenses:
                                2015                                                                         $  16,000                                             $   8,935                                                $  10,048                                               $  10,210                                               $               45,193
                                2014                                                                         $  14,823                                             $   9,510                                                $   9,938                                               $   9,397                                               $               43,668
                                                                                                                                                                                                                                                                                                                                               
Advertising and selling expense:
                                2015                                                                         $   6,163                                             $   5,500                                                $   6,906                                               $   6,398                                               $               24,967
                                2014                                                                         $   6,544                                             $   6,093                                                $   7,844                                               $   6,430                                               $               26,911
                                                                                                                                                                                                                                                                                                                                               
REVPAF:
                                2015                                                                         $   14.21                                             $   14.73                                                $   15.43                                               $   15.18                                               $                14.89
                                2014                                                                         $   13.35                                             $   13.76                                                $   14.46                                               $   14.24                                               $                13.95
                                                                                                                                                                                                                                                                                                                                               
Weighted average realized annual rent per occupied square foot:
                                2015                                                                         $   15.21                                             $   15.44                                                $   16.19                                               $   16.18                                               $                15.76
                                2014                                                                         $   14.41                                             $   14.53                                                $   15.27                                               $   15.23                                               $                14.86
                                                                                                                                                                                                                                                                                                                                               
Weighted average occupancy levels for the period:
                                2015                                                                             93.4%                                                 95.4%                                                    95.3%                                                   93.9%                                                                94.5%
                                2014                                                                             92.6%                                                 94.7%                                                    94.7%                                                   93.5%                                                                93.9%
                                                                                                                                                                                                                                                                                                                                               

Property Operations - Non Same Store Facilities

The Non Same Store Facilities at December 31, 2015 represent 276 facilities that were not stabilized with respect to occupancies or rental rates since January 1, 2013 or that we did not own as of January 1, 2013. The following table summarizes operating data with respect to the Non Same Store Facilities (unaudited):

                                                                                                                                                                                                                                                                                                     
NON SAME STORE FACILITIES                                                                                                                                                                 Three Months Ended December 31,                                                                                                                                                                                                                                    Year Ended December 31,
                                                                                                           ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    2015                                                                  2014                                                                           Change                                                                                       2015                                                                                        2014                                                                                        Change
                                                                                                           --------------------------                                            --------------------------                                            ----------------------------------------------                                             -----------------------------------------------                                             -----------------------------------------------                                             --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                         (Dollar amounts in thousands, except square foot amounts)
Revenues:
   2015 acquisitions                                                                                                          $  2,752                                                              $      -                                                              $  2,752                                                                                   $   6,255                                                                                   $       -                                                                                   $      6,255
   2014 acquisitions                                                                                                            10,929                                                                 8,532                                                                 2,397                                                                                      41,972                                                                                      15,347                                                                                         26,625
   2013 acquisitions                                                                                                            28,667                                                                25,800                                                                 2,867                                                                                     110,603                                                                                      96,947                                                                                         13,656
   Other facilities                                                                                          27,482                                             23,160                                              4,322                                               103,801                                                85,919                                                   17,882  
                                                                                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
      Total revenues                                                                                         69,830                                             57,492                                             12,338                                               262,631                                               198,213                                                   64,418  
                                                                                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Cost of operations before depreciation and amortization expense:
   2015 acquisitions                                                                                                               915                                                                     -                                                                   915                                                                                       2,067                                                                                           -                                                                                          2,067
   2014 acquisitions                                                                                                             3,001                                                                 2,448                                                                   553                                                                                      12,304                                                                                       4,566                                                                                          7,738
   2013 acquisitions                                                                                                             8,052                                                                 8,379                                                                  (327 )                                                                                    32,724                                                                                      32,917                                                                                           (193 )
   Other facilities                                                                                           7,302                                              6,037                                              1,265                                                30,059                                                27,000                                                    3,059  
                                                                                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
      Total cost of operations                                                                               19,270                                             16,864                                              2,406                                                77,154                                                64,483                                                   12,671  
                                                                                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Net operating income:
   2015 acquisitions                                                                                                             1,837                                                                     -                                                                 1,837                                                                                       4,188                                                                                           -                                                                                          4,188
   2014 acquisitions                                                                                                             7,928                                                                 6,084                                                                 1,844                                                                                      29,668                                                                                      10,781                                                                                         18,887
   2013 acquisitions                                                                                                            20,615                                                                17,421                                                                 3,194                                                                                      77,879                                                                                      64,030                                                                                         13,849
   Other facilities                                                                                          20,180                                             17,123                                              3,057                                                73,742                                                58,919                                                   14,823  
                                                                                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
   Net operating income (a)                                                                                                   $ 50,560                                                              $ 40,628                                                              $  9,932                                                                $ 185,477                                                                $ 133,730                                                                $     51,747  
                                                                                                           ==================== ======                                           ==================== ======                                           ==================== ====== ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
At December 31:
----------------------------------------------------------------
 Square foot occupancy:
   2015 acquisitions                                                                                                                                                                                                                                                                                                                                                      85.3 %                                                                                         -                                                                                              -
   2014 acquisitions                                                                                                                                                                                                                                                                                                                                                      91.1 %                                                                                      89.9 %                                                                                          1.3 %
   2013 acquisitions                                                                                                                                                                                                                                                                                                                                                      92.5 %                                                                                      90.4 %                                                                                          2.3 %
   Other facilities                                                                                                                                                                                                                                                                                                                                    83.7 %                                                                   83.6 %                                                                       0.1 %
                                                                                                                                                                                                                                                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                       88.4 %                                                                   87.8 %                                                                       0.7 %
                                                                                                                                                                                                                                                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========== ====================
 Annual contract rent per occupied square foot:
   2015 acquisitions                                                                                                                                                                                                                                                                                                                                                 $   12.87                                                                                   $       -                                                                                              -
   2014 acquisitions                                                                                                                                                                                                                                                                                                                                                     13.51                                                                                       12.15                                                                                           11.2 %
   2013 acquisitions                                                                                                                                                                                                                                                                                                                                                     15.15                                                                                       13.99                                                                                            8.3 %
   Other facilities                                                                                                                                                                                                                                                                                                                                   16.05                                                 15.65                                                      2.6 %
                                                                                                                                                                                                                                                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                     $   15.06                                                                $   14.22                                                      5.9 %
                                                                                                                                                                                                                                                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========== ====================
 Number of facilities:
   2015 acquisitions                                                                                                                                                                                                                                                                                                                                                        17                                                                                           -                                                                                             17
   2014 acquisitions                                                                                                                                                                                                                                                                                                                                                        44                                                                                          44                                                                                              -
   2013 acquisitions                                                                                                                                                                                                                                                                                                                                                       121                                                                                         121                                                                                              -
   Other facilities                                                                                                                                                                                                                                                                                                                                      94                                                    83                                                       11  
                                                                                                                                                                                                                                                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                        276                                                   248                                                       28  
                                                                                                                                                                                                                                                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========== ====================
 Net rentable square feet (in thousands):
   2015 acquisitions                                                                                                                                                                                                                                                                                                                                                     1,285                                                                                           -                                                                                          1,285
   2014 acquisitions                                                                                                                                                                                                                                                                                                                                                     3,457                                                                                       3,442                                                                                             15
   2013 acquisitions                                                                                                                                                                                                                                                                                                                                                     8,056                                                                                       8,056                                                                                              -
   Other facilities                                                                                                                                                                                                                                                                                                                                   8,217                                                 7,029                                                    1,188  
                                                                                                                                                                                                                                                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                     21,015                                                18,527                                                    2,488  
                                                                                                                                                                                                                                                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========== ====================
(a)   See attached reconciliation of self-storage NOI to operating income.
                          

Investing and Capital Markets Activities

During the three months ended December 31, 2015, we acquired seven self-storage facilities (three located in Florida and two each in Texas and California), with 0.5 million net rentable square feet, for $71 million. For the year ended December 31, 2015, we acquired 17 self-storage facilities with an aggregate of 1.3 million net rentable square feet for approximately $169 million. Subsequent to December 31, 2015, we acquired or were under contract to acquire 17 self-storage facilities (seven in Florida, eight in Ohio, one each in South Carolina and Tennessee), with 1.2 million net rentable square feet, for $149 million.

During the three months ended December 31, 2015, we completed four newly developed facilities and various expansion projects (0.4 million net rentable square feet) costing $34 million. For the year ended December 31, 2015, we completed 13 newly developed facilities (1.2 million net rentable square feet) at an aggregate cost of $119 million, and various expansion projects with an aggregate cost of $5 million which added 0.1 million net rentable square feet. At December 31, 2015, we had various facilities in development (3.0 million net rentable square feet) estimated to cost $396 million and various expansion projects (0.7 million net rentable square feet) estimated to cost $90 million. The remaining $267 million development cost for these projects is expected to be incurred primarily in 2016.

On October 8, 2015, we redeemed our 6.50% Series P Preferred Shares for $125 million plus accrued dividends.

On November 3, 2015, we issued EUR242.0 million of Euro-denominated ($264.3 million) unsecured Senior Notes, bearing interest at a fixed rate of 2.175% and maturing in ten years.

On January 20, 2016, we issued our 5.40% Series B Preferred Shares for gross proceeds of $300 million.

Distributions Declared

On February 15, 2016, our Board of Trustees declared a regular common quarterly dividend of $1.70 per common share. The Board also declared dividends with respect to our various series of preferred shares. All the dividends are payable on March 31, 2016 to shareholders of record as of March 16, 2016.

Fourth Quarter Conference Call

A conference call is scheduled for February 17, 2016 at 11:00 a.m. (PST) to discuss the fourth quarter earnings results. The domestic dial-in number is (866) 406-5408, and the international dial-in number is (973) 582-2770 (conference ID number for either domestic or international is 19273906). A simultaneous audio webcast may be accessed by using the link at www.publicstorage.com under "Company Info, Investor Relations, News and Events, Events Calendar." A replay of the conference call may be accessed through March 4, 2016 by calling (800) 585-8367 (domestic) or (404) 537-3406 (international) or by using the link at www.publicstorage.com under "Company Info, Investor Relations, News and Events, Events Calendar." All forms of replay utilize conference ID number 19273906.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. The Company’s headquarters are located in Glendale, California. At December 31, 2015, we had interests in 2,277 self-storage facilities located in 38 states with approximately 148 million net rentable square feet in the United States and 217 storage facilities located in seven Western European nations with approximately 12 million net rentable square feet operated under the "Shurgard" brand. We also own a 42% common equity interest in PS Business Parks, Inc. (PSB ) which owned and operated approximately 28 million rentable square feet of commercial space at December 31, 2015.

Additional information about Public Storage is available on our website, www.publicstorage.com.

Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are forward-looking statements which may be identified by the use of the words "expects," "believes," "anticipates," "should," "estimates" and similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance are described from time to time in our filings with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014, our other Quarterly Reports on Form 10-Q and current reports on Form 8-K. These risks include, but are not limited to, the following: general risks associated with the ownership and operation of real estate, including changes in demand for our storage facilities, potential liability for environmental contamination, adverse changes in tax, real estate and zoning laws and regulations and the impact of natural disasters; risks associated with downturns in the national and local economies in the markets in which we operate; the impact of competition from new and existing self-storage and commercial facilities and other storage alternatives; difficulties in our ability to successfully evaluate, finance, integrate into our existing operations and manage acquired and developed properties; risks related to our development of new properties and/or participation in joint ventures; risks associated with international operations including, but not limited to, unfavorable foreign currency rate fluctuations that could adversely affect our earnings and cash flows; the impact of the regulatory environment as well as national, state and local laws and regulations including, without limitation, those governing REITs and our tenant reinsurance business; risks associated with a possible failure by us to qualify as a REIT under the Internal Revenue Code of 1986, as amended; security breaches or a failure of our networks, systems or technology could adversely impact our business, customer and employee relationships; changes in federal tax laws related to the taxation of REITs, which could impact our status as a REIT; difficulties in raising capital at a reasonable cost; delays in the development process; ongoing litigation and other legal and regulatory actions which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business; and economic uncertainty due to the impact of war or terrorism. We disclaim any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, new estimates, or other factors, events or circumstances after the date of this press release, except where expressly required by law.

 
                                                                                                                                                                                                                  PUBLIC STORAGE
                                                                                                                                                                                                          SELECTED INCOME STATEMENT DATA
                                                                                                                                                                                                   (Amounts in thousands, except per share data)
                                                                                                                                                                                                                    (Unaudited)
                                                                                                                                                                                                                                    
                                                                                                                                                                     Three Months Ended                                                                                                                                                                            Year Ended
                                                                                                                                                                        December 31,                                                                                                                                                                              December 31,
                                                                                                       ----------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              2015                                                                                        2014                                                                                         2015                                                                                          2014
                                                                                                       --------------------------------------------------                                          --------------------------------------------------                                          ----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Revenues:
   Self-storage facilities                                                                                                $ 572,884                                                                                   $ 529,221                                                                                   $ 2,235,525                                                                                   $  2,049,882
   Ancillary operations                                                                                   36,446                                                32,460                                                 146,171                                                  127,414  
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
                                                                                                         609,330                                               561,681                                               2,381,696                                                2,177,296  
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Expenses:
   Self-storage cost of operations                                                                                          125,618                                                                                     121,424                                                                                       586,696                                                                                        566,898
   Ancillary cost of operations                                                                                              12,091                                                                                      10,953                                                                                        48,806                                                                                         46,426
   Depreciation and amortization                                                                                            106,307                                                                                     110,573                                                                                       426,008                                                                                        437,114
   General and administrative                                                                             19,456                                                19,219                                                  88,177                                                   71,459  
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
                                                                                                         263,472                                               262,169                                               1,149,687                                                1,121,897  
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Operating income                                                                                                            345,858                                                                                     299,512                                                                                     1,232,009                                                                                      1,055,399
                                                                                                                                                                                                                                                                                                                                                                                                                   
Other income (expense):
   Interest and other income                                                                                                  5,035                                                                                       3,964                                                                                        16,544                                                                                         17,638
   Interest expense                                                                                                            (610 )                                                                                         -                                                                                          (610 )                                                                                       (6,781 )
                                                                                                                             14,670                                                                                      44,962                                                                                        50,937                                                                                         88,267
   Equity in earnings of unconsolidated real estate entities
   Gain on real estate sales                                                                                                      -                                                                                           -                                                                                        18,503                                                                                          2,479
   Foreign currency exchange gain (loss)                                                                     306                                                   (12 )                                                                      306                                                   (7,047 )
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
Net income                                                                                                                  365,259                                                                                     348,426                                                                                     1,317,689                                                                                      1,149,955
   Allocation to noncontrolling interests                                                                 (1,769 )                                                                 (1,711 )                                                                   (6,445 )                                                                    (5,751 )
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
Net income allocable to Public Storage shareholders                                                                         363,490                                                                                     346,715                                                                                     1,311,244                                                                                      1,144,204
   Allocation of net income to:
      Preferred shareholders - distributions                                                                   (59,031 )                                                                                   (61,694 )                                                                                    (245,097 )                                                                                     (232,636 )
      Preferred shareholders - redemptions                                                                           -                                                                                           -                                                                                        (8,897 )                                                                                            -
      Restricted share units                                                                              (1,456 )                                                                 (1,064 )                                                                   (4,200 )                                                                    (3,392 )
                                                                                                       -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
Net income allocable to common shareholders                                                                               $ 303,003                                                                $ 283,957                                                                $ 1,053,050                                                                $    908,176  
                                                                                                       ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                   
Per common share:
------------------------------------------------------------
   Net income per common share - Basic                                                                       $    1.75                                                                $    1.65                                                                $      6.10                                                                $       5.27  
                                                                                                       ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
   Net income per common share - Diluted                                                                     $    1.74                                                                $    1.64                                                                $      6.07                                                                $       5.25  
                                                                                                       ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
   Weighted average common shares - Basic                                                   172,877                                               172,434                                                 172,699                                                  172,251  
                                                                                                       ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
   Weighted average common shares - Diluted                                                 173,759                                               173,258                                                 173,510                                                  173,138  
                                                                                                       ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
 
                                                                                                                               PUBLIC STORAGE
                                                                                                                         SELECTED BALANCE SHEET DATA
                                                                                                           (Amounts in thousands, except share and per share data)
                                                                                                                                          
                                                                                                                                          December 31, 2015                                                                              December 31, 2014
                                                                                                                        -----------------------------------------------------                                          -----------------------------------------------------
ASSETS                                                                                                                                       (Unaudited)
                                                                                                                                                                                                                                             
Cash and cash equivalents                                                                                                                  $    104,285                                                                                   $    187,712
                                                                                                                                                                                                                                             
Operating real estate facilities:
   Land and buildings, at cost                                                                                                               13,205,261                                                                                     12,863,235
   Accumulated depreciation                                                                                               (4,866,738 )                                                                (4,482,520 )
                                                                                                                        -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                              8,338,523                                                                                      8,380,715
Construction in process                                                                                                                         219,190                                                                                        104,573
Investments in unconsolidated real estate entities                                                                                              809,308                                                                                        813,740
Goodwill and other intangible assets, net                                                                                                       211,458                                                                                        228,632
Other assets                                                                                                                  95,468                                                  103,304  
                                                                                                                        -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
            Total assets                                                                                                                   $  9,778,232                                                                $  9,818,676  
                                                                                                                        ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
LIABILITIES AND EQUITY
Senior unsecured notes                                                                                                                     $    263,940                                                                                   $          -
Mortgage notes                                                                                                                                   55,076                                                                                         64,364
Accrued and other liabilities                                                                                                261,578                                                  247,141  
                                                                                                                        -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
            Total liabilities                                                                                                                   580,594                                                                                        311,505
                                                                                                                                                                                                                                             
Equity:
   Public Storage shareholders’ equity:
                                                                                                                                              4,055,000                                                                                      4,325,000
      Cumulative Preferred Shares, $0.01 par value, 100,000,000 shares
      authorized, 162,200 shares issued (in series) and outstanding
      (173,000 at December 31, 2014), at liquidation preference
                                                                                                                                                 17,293                                                                                         17,245
      Common Shares, $0.10 par value, 650,000,000 shares authorized,
      172,921,241 shares issued and outstanding (172,445,554 shares at
      December 31, 2014)
      Paid-in capital                                                                                                                         5,601,506                                                                                      5,561,530
      Accumulated deficit                                                                                                                      (434,610 )                                                                                     (374,823 )
      Accumulated other comprehensive loss                                                                                   (68,548 )                                                                   (48,156 )
                                                                                                                        -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
         Total Public Storage shareholders’ equity                                                                 9,170,641                                                                                      9,480,796
      Noncontrolling interests                                                                                                26,997                                                   26,375  
                                                                                                                        -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
         Total equity                                                                                                      9,197,638                                                9,507,171  
                                                                                                                        -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
            Total liabilities and equity                                                                                                   $  9,778,232                                                                $  9,818,676  
                                                                                                                        ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                        
 
                                                                                                                                                                                                                       PUBLIC STORAGE
                                                                                                                                                                                                                   SELECTED FINANCIAL DATA
 
                                                                                                                                                                                                Computation of Funds from Operations and Funds Available for
                                                                                                                                                                                                                        Distribution
                                                                                                                                                                                           (Unaudited - amounts in thousands, except per share data)
                                                                                                                                                                                                                                               
                                                                                                                                                                                Three Months Ended                                                                                                                                                                            Year Ended
                                                                                                                                                                                   December 31,                                                                                                                                                                              December 31,
                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         2015                                                                                        2014                                                                                         2015                                                                                          2014
                                                                                                                  --------------------------------------------------                                          --------------------------------------------------                                          ----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                              
Computation of FFO per Share:
-----------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                              
Net income allocable to common shareholders                                                                                          $ 303,003                                                                                   $ 283,957                                                                                   $ 1,053,050                                                                                   $    908,176
   Eliminate items excluded from FFO:
      Depreciation and amortization                                                                                                    106,307                                                                                     110,573                                                                                       426,008                                                                                        437,114
      Depreciation from unconsolidated real estate investments                                                                          19,893                                                                                      18,992                                                                                        78,985                                                                                         79,413
                                                                                                                                          (887 )                                                                                      (808 )                                                                                      (3,519 )                                                                                       (3,638 )
      Depreciation allocated to noncontrolling interests and restricted
      share unitholders
                                                                                                                       (888 )                                                                (36,351 )                                                                  (29,721 )                                                                   (39,083 )
      Gains on sale of real estate investments, including our equity
      share from investments and other
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
FFO allocable to common shares (a)                                                                                                   $ 427,428                                                                $ 376,363                                                                $ 1,524,803                                                                $  1,381,982  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
Diluted weighted average common shares                                                                              173,759                                               173,258                                                 173,510                                                  173,138  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
FFO per share (a)                                                                                                                    $    2.46                                                                $    2.17                                                                $      8.79                                                                $       7.98  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Reconciliation of Earnings per Share to
FFO per Share:
-----------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                              
Earnings per share - diluted                                                                                                         $    1.74                                                                                   $    1.64                                                                                   $      6.07                                                                                   $       5.25
   Eliminate per share amounts excluded from FFO:
                                                                                                                                          0.72                                                                                        0.74                                                                                          2.89                                                                                           2.96
      Depreciation and amortization, including amounts from investments
      and excluding amounts allocated to noncontrolling interests and
      restricted share unitholders
                                                                                                                          -                                                 (0.21 )                                                                    (0.17 )                                                                     (0.23 )
      Gains on sale of real estate investments, including our equity
      share from investments and other
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
FFO per share (a)                                                                                                                    $    2.46                                                                $    2.17                                                                $      8.79                                                                $       7.98  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Computation of Funds Available for
Distribution ("FAD"):
-----------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                              
FFO allocable to common shares                                                                                                       $ 427,428                                                                                   $ 376,363                                                                                   $ 1,524,803                                                                                   $  1,381,982
Eliminate effect of items included in FFO but not FAD:
   Non-cash share-based compensation expense                                                                                             8,167                                                                                       7,383                                                                                        32,570                                                                                         29,541
                                                                                                                                        (1,773 )                                                                                        12                                                                                        (1,773 )                                                                                        7,047
   Foreign currency exchange (gain) loss, including our equity share
   from investments
                                                                                                                                             -                                                                                           -                                                                                         9,944                                                                                              -
   Application of EITF D-42, including our equity share from
   investments
Less: Capital expenditures to maintain real estate facilities                                                       (10,194 )                                                                (16,185 )                                                                  (63,069 )                                                                   (79,784 )
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                              
FAD (a)                                                                                                                              $ 423,628                                                                $ 367,573                                                                $ 1,502,475                                                                $  1,338,786  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Distributions paid to common shareholders                                                                                            $ 293,716                                                                $ 241,253                                                                $ 1,122,126                                                                $    964,591  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Distribution payout ratio                                                                                              69.3 %                                                                   65.6 %                                                                     74.7 %                                                                      72.0 %
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Distributions per common share                                                                                                       $    1.70                                                                $    1.40                                                                $      6.50                                                                $       5.60  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
(a)   FFO and FFO per share are non-GAAP measures defined by the National
                         Association of Real Estate Investment Trusts and, along with FAD,
                         are considered helpful measures of REIT performance by REITs and
                         many REIT analysts. FFO represents net income before real estate
                         depreciation, gains or losses and impairment charges, which are
                         excluded because they are based upon historical real estate costs
                         and assume that building values diminish ratably over time, while we
                         believe that real estate values fluctuate due to market conditions.
                         FAD represents FFO adjusted to exclude certain non-cash charges and
                         to deduct capital expenditures. FFO and FFO per share are not a
                         substitute for net income or earnings per share. FFO and FAD are not
                         substitutes for GAAP net cash flow in evaluating our liquidity or
                         ability to pay dividends, because they exclude investing and
                         financing activities presented on our statements of cash flows. In
                         addition, other REITs may compute these measures differently, so
                         comparisons among REITs may not be helpful.
                          
 
                                                                                                                                                                                                          PUBLIC STORAGE
                                                                                                                                                                                                      SELECTED FINANCIAL DATA
 
                                                                                                                                                                                      Reconciliation of Self-Storage Net Operating Income to
                                                                                                                                                                                                         Operating Income
                                                                                                                                                                                          (Unaudited - amounts in thousands)
                                                                                                                                                                                                                     
                                                                                                                                                     Three Months Ended                                                                                                                                                                             Year Ended
                                                                                                                                                        December 31,                                                                                                                                                                               December 31,
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             2015                                                                                         2014                                                                                          2015                                                                                          2014
                                                                                      ---------------------------------------------------                                          ---------------------------------------------------                                          ----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                    
Self-storage revenues for:
   Same Store Facilities                                                                                 $  503,054                                                                                   $  471,729                                                                                   $ 1,972,894                                                                                   $  1,851,669
   Non Same Store Facilities                                                              69,830                                                 57,492                                                 262,631                                                  198,213  
                                                                                      -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
Self-storage revenues                                                                                       572,884                                                                                      529,221                                                                                     2,235,525                                                                                      2,049,882
                                                                                                                                                                                                                                                                                                                                                                                                    
Self-storage cost of operations for:
   Same Store Facilities                                                                                    106,348                                                                                      104,560                                                                                       509,542                                                                                        502,415
   Non Same Store Facilities                                                              19,270                                                 16,864                                                  77,154                                                   64,483  
                                                                                      -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
Self-storage cost of operations                                                                             125,618                                                                                      121,424                                                                                       586,696                                                                                        566,898
                                                                                                                                                                                                                                                                                                                                                                                                    
Self-storage net operating income for:
   Same Store Facilities                                                                                    396,706                                                                                      367,169                                                                                     1,463,352                                                                                      1,349,254
   Non Same Store Facilities                                                              50,560                                                 40,628                                                 185,477                                                  133,730  
                                                                                      -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
Self-storage net operating income (a)                                                                       447,266                                                                                      407,797                                                                                     1,648,829                                                                                      1,482,984
Ancillary operating revenues                                                                                 36,446                                                                                       32,460                                                                                       146,171                                                                                        127,414
Ancillary cost of operations                                                                                (12,091 )                                                                                    (10,953 )                                                                                     (48,806 )                                                                                      (46,426 )
Depreciation and amortization                                                                              (106,307 )                                                                                   (110,573 )                                                                                    (426,008 )                                                                                     (437,114 )
General and administrative expense                                                       (19,456 )                                                                 (19,219 )                                                                  (88,177 )                                                                   (71,459 )
                                                                                      -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
   Operating income on our income statement                                                              $  345,858                                                                $  299,512                                                                $ 1,232,009                                                                $  1,055,399  
                                                                                      ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
(a)   Net operating income or "NOI" is a non-GAAP financial measure that
                         excludes the impact of depreciation and amortization expense. We
                         believe that NOI is a meaningful measure of operating performance,
                         because we utilize NOI in making decisions with respect to capital
                         allocations, in determining current property values, in evaluating
                         property performance and in comparing period-to-period and
                         market-to-market property operating results. In addition, we believe
                         the investment community utilizes NOI in determining operating
                         performance and real estate values, and does not consider
                         depreciation expense because it is based upon historical cost. NOI
                         is not a substitute for net income, net operating cash flow, or
                         other related GAAP financial measures, in evaluating our operating
                         results. This table reconciles from NOI for our self-storage
                         facilities to the operating income presented on our income statement.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160216006797r1&sid=cmtx6&distro=nx&lang=en

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SOURCE: Public Storage

Public Storage 
Clemente Teng 
(818) 244-8080, Ext. 1141


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