15.

RECLASSIFICATION

Internet advertising expense, which had been included in the general and administrative expense line in prior year financial statements, has been reclassified to property operations and maintenance expense to conform with the current year presentation. The Company believes the classification of internet advertising expenses as property operations and maintenance expense is more consistent with industry trends. The amount of internet advertising expense that was reclassified for the three and six months ended June 30, 2014 was $1,540 and $2,960, respectively (dollars in thousands).

If such reclassification was in effect for the years ended December 31, 2014, 2013 and 2012, the consolidated statements of operations of the Company for such periods would show an increase in property operations and maintenance expense and a reduction of general and administrative expenses of (dollars in thousands) $5,570 for 2014, $4,803 for 2013, and $3,848 for 2012. There would be no effect on any other line items of the consolidated statements of operations. The consolidated statements of operations of the Company for such periods would have been presented as follows:

CONSOLIDATED STATEMENTS OF OPERATIONS


	Year Ended December 31,
(dollars in thousands, except per share data)	2014			2013			2012
Revenues
Rental income	$	302,044		$	253,384		$	217,906
Other operating income		24,036			20,123			16,176

Total operating revenues		326,080			273,507			234,082
Expenses
Property operations and maintenance		75,333			66,119			59,011
Real estate taxes		32,097			26,496			22,076
General and administrative		35,222			30,136			28,465
Acquisition costs		7,359			3,129			4,328
Operating leases of storage facilities		7,987			1,331			—
Depreciation and amortization		51,749			45,233			40,542

Total operating expenses		209,747			172,444			154,422

Income from operations		116,333			101,063			79,660
Other income (expenses)
Interest expense		(34,578	)		(32,000	)		(33,166	)
Interest income		40			40			4
Gain on sale of storage facilities		5,176			—			—
Gain on sale of real estate		—			421			687
Equity in income of joint ventures		2,086			1,948			936

Income from continuing operations		89,057			71,472			48,121
Income from discontinued operations (including a gain on disposal of $2,431 in 2013 and $4,498 in 2012)		—			3,123			7,520

Net income		89,057			74,595			55,641
Net income attributable to noncontrolling interest		(526	)		(469	)		(513	)

Net income attributable to common shareholders	$	88,531		$	74,126		$	55,128

Earnings per common share attributable to common shareholders—basic
Continuing operations	$	2.68		$	2.27		$	1.62
Discontinued operations		—			0.10			0.26

Earnings per share—basic	$	2.68		$	2.37		$	1.88

Earnings per common share attributable to common shareholders—diluted
Continuing operations	$	2.67		$	2.26		$	1.61
Discontinued operations		—			0.10			0.26

Earnings per share—diluted	$	2.67		$	2.36		$	1.87