Operating Results for the Three Months Ended June 30, 2019
For the three months ended June 30, 2019, net income allocable to our common shareholders was $306.4 million or $1.76 per diluted common share, compared to $348.3 million or $2.00 per diluted common share in 2018 representing a decrease of $41.9 million or $0.24 per diluted common share. The decrease is due primarily to (i) a $27.2 million decrease due to the impact of foreign currency exchange gains and losses associated with our euro denominated debt, (ii) our $24.0 million equity share of a gain on sale of assets recorded by PS Business Parks in the three months ended June 30, 2018, and (iii) an $8.9 million allocation to our preferred shareholders associated with our preferred share redemption activities in the three months ended June 30, 2019. These decreases were offset partially by (iv) a $7.9 million increase in self-storage net operating income (described below), and (v) a reduction in general and administrative expense attributable to $7.8 million in incremental share-based compensation expense in the three months ended June 30, 2018 for the planned retirement of our former CEO and CFO.
The $7.9 million increase in self-storage net operating income is a result of a $3.4 million increase in our Same Store Facilities (as defined below) and a $4.5 million increase in our Non Same Store Facilities (as defined below). Revenues for the Same Store Facilities increased 1.9% or $11.5 million in the three months ended June 30, 2019 as compared to 2018, due primarily to higher realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 5.1% or $8.1 million in the three months ended June 30, 2019 as compared to 2018, due primarily to increased property taxes and higher marketing expenses. The increase in net operating income of $4.5 million for the Non Same Store Facilities is due primarily to the impact of facilities acquired in 2018 and 2019 and the fill-up of recently developed and expanded facilities.
Public Storage - Press Release
