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17
Public Storage, Inc. 1997 Annual Report
liabilities as of the dates of each respective transaction. The fair market values of the assets acquired and liabilities assumed with respect to
the transactions occurring in 1997 and 1996 are summarized as follows: REIT Partnership
(In thousands) mergers Acquisitions Total
1997 business combinations:
Real estate facilities $413,597 $243,750 $657,347
Other assets 2,424 1,695 4,119
Accrued and other liabilities (11,114) (10,076) (21,190)
Minority interest
—
(74,068) (74,068)
$404,907 $161,301 $566,208
1996 business combinations:
Real estate facilities $364,984 $166,810 $531,794
Other assets 5,032 817 5,849
Accrued and other liabilities (13,181) (2,218) (15,399)
Minority interest
—
(20,139) (20,139)
$356,835 $145,270 $502,105
The historical operating results of the above acquisitions prior to each respective acquisition date have not been included in the
Company’s historical operating results. Pro forma data (unaudited) for the years ended December 31, 1997 and 1996 as though the business
combinations above had been effective at the beginning of fiscal 1996 are as follows:
For the Year
Ended December 31,
(In thousands, except per share data) 1997 1996
Revenues $515,286 $453,940
Net income $181,678 $173,542
Net income per common share (Basic) $ 0.92 $ 1.13
Net income per common share (Diluted) $ 0.91 $ 1.13
The pro forma data does not purport to be indicative either of results of operations that would have occurred had the transactions occurred
at the beginning of fiscal 1996 or future results of operations of the Company. Certain pro forma adjustments were made to the combined
historical amounts to reflect (i) expected reductions in general and administrative expenses, (ii) estimated increased interest expense from
bank borrowings to finance the cash portion of the acquisition cost and (iii) estimated increase in depreciation and amortization expense.
Note 4. Real Estate Facilities
Activity in real estate facilities during 1997, 1996 and 1995 is as follows:
(In thousands) 1997 1996 1995
Operating facilities, at cost:
Beginning balance $2,185,498 $1,405,155 $ 967,718
Property acquisitions:
Business combinations (Note 3) 657,347 531,794 230,519
Other acquisitions 184,504 202,696 191,002
Developed facilities 8,639 18,261 5,265
Acquisition of minority interest (Note 8) 8,904 7,226 (223)
Capital improvements 35,117 20,366 11,361
Property dispositions (2,480)
—
(487)
Ending balance 3,077,529 2,185,498 1,405,155
Accumulated depreciation:
Beginning balance (297,655) (241,966) (202,745)
Additions during the year (82,047) (55,689) (39,376)
Property dispositions 1,454
—
155
Ending balance (378,248) (297,655) (241,966)
Construction in progress:
Beginning balance 35,815 7,979
—
Current development cost 45,865 46,097 13,244
Property contribution to real estate entities (30,406)
— —
Newly opened development facilities (8,639) (18,261) (5,265)
Ending balance 42,635 35,815 7,979
Total real estate facilities $2,741,916 $1,923,658 $1,171,168