Operator: Good afternoon. My name is Jackie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Public Storage Third Quarter 2011 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you.
Mr. Teng, you may begin your conference.
Clemente Teng - VP, IR: Good morning, and thank you for joining us for our third quarter earnings call. Here with me today are Ron Havner, CEO; and John Reyes, CFO. We'll follow the usual format followed by a question-and-answer period. However, to allow for equal participation, we request that you ask only one question when your turn comes up and then return to the queue for any follow-up questions.
Before we start, I want to remind you that all statements other than statements of historical facts, included in this conference call are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected in these statements.
These risks and other factors that could adversely affect our business and future results are described in today's earnings press release, as well as in our reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of today, November 4, 2011, and we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
A reconciliation to GAAP of the non-GAAP financial measures we are providing on this call is included in our earnings press release. You can find our press release, SEC reports, and an audio webcast replay of this conference call on our website at www.publicstorage.com.
I'll turn the call over to John Reyes.
John Reyes - SVP and CFO: Thank you, Clem. As outlined in our press release, our third quarter core FFO per share was $1.56 compared to $1.35 last year, a 16% increase. Five items contributed to this growth. First, our same-store net operating income increased by 8.6%, adding $0.13 per share due to higher revenues of 5.8% and flat operating expenses. Second, our investment in Shurgard Europe added $0.03 per share, driven primarily by Shurgard's first quarter acquisition of the remaining interest in two joint ventures.
Non same-store properties added $0.03 per share, lower preferred dividend added $0.02 and higher ancillary income $0.01 per share. These items were partially offset by higher G&A costs of $0.02 per share due to increased incentive compensation. During the third quarter, we issued $488 million of 6.35% preferred stock and redeemed $525 million with a blended rate of 7.2%.
In the fourth quarter, we will redeem and additional $105 million of preferred with a rate of 6.95%. There will be a charge associated with the redemption of about $3 million or $0.02 per share. As a result of these capital transactions completed in 2011, our quarterly preferred dividend is expected to be about $7 million lower in the fourth quarter as compared to the same period last year.