Public Storage 2000 Annual Report Download - page 22

P UBLIC S TORAGE , I NC . 2000 A NNUAL R EPORT
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Mortgage notes payable are secured by 24 real estate facilities having an aggregate net book value of approximately $48.0 million
at December 31, 2000.
At December 31, 2000, approximate principal maturities of notes payable are as follows:
Unsecured
(In thousands) Senior Notes Mortgage debt Total
2001 $ 9,500 $ 2,910 $ 12,410
2002 24,450 3,530 27,980
2003 35,900 3,585 39,485
2004 25,800 15,063 40,863
2005 11,200 156 11,356
Thereafter 22,400 1,509 23,909
$129,250 $26,753 $156,003
Weighted average rate 7.5% 10.2% 7.9%
Interest paid (including interest related to the borrowings on the Credit Facility) during 2000, 1999 and 1998 was $13,071,000,
$12,528,000, and $7,690,000, respectively. In addition, in 2000, 1999 and 1998, the Company capitalized interest totaling
$9,778,000, $4,509,000, and $3,481,000, respectively, related to construction of real estate facilities.
Note 8 —
Minority Interest
In consolidation, we classify ownership interests in the net assets of each of the Consolidated Entities, other than our own, as minority
interest on the consolidated financial statements. Minority interest in income consists of the minority interests’ share of the operating
results of the Company relating to the consolidated operations of the Consolidated Entities.
During 2000, one of our operating partnerships issued in aggregate $365.0 million of preferred partnership units: March 17, 2000 –
$240.0 million of 9.5% Series N Cumulative Redeemable Perpetual Preferred Units, March 29, 2000 – $75.0 million of 9.125% Series O
Cumulative Redeemable Perpetual Preferred Units, and August 11, 2000 – $50.0 million of 8.75% Series P Cumulative Redeemable
Perpetual Preferred Units. These preferred units are not redeemable during the first 5 years, thereafter, at our option, we can call the
units for redemption at the issuance amount plus any unpaid distributions. The units are not redeemable by the holder. Subject to
certain conditions, the Series N preferred units are convertible into shares of 9.5% Series N Cumulative Preferred Stock, the Series O
preferred units are convertible into shares of 9.125% Series O Cumulative Preferred Stock and the Series P preferred units are
convertible into shares of 8.75% Series P Cumulative Preferred Stock of the Company. We incurred approximately $3,750,000 in costs
in connection with the issuances; these costs were recorded as a reduction to Paid in Capital. These transactions had the effect of
increasing minority interest by $365.0 million. For the year ended December 31, 2000, the holders of these preferred units were
paid in aggregate approximately $24,859,000 in distributions and received an equivalent allocation of minority interest in earnings.
In November 1999, we formed a second development joint venture with a joint venture partner to develop $100 million of storage
facilities and to purchase $100 million of the Company’s Equity Stock, Series AAA. The joint venture is consolidated and, accordingly,
the Equity Stock, Series AAA is eliminated in consolidation. Included in minority interest at December 31, 2000 is approximately
$77,126,000 relative to the joint venture, primarily representing total contributions received by our joint venture partner since
inception of the partnership, net of distributions. Minority interest increased by $21,392,000 as a result of contributions by our joint
venture partner since December 31, 1999 and decreased by $7,871,000 as a result of distributions to our joint venture partner.
In 1999, in connection with the merger with Storage Trust, minority interest increased by approximately $27,009,000, reflecting the
fair value of 1,011,963 operating partnership units (“OP Units”) in Storage Trust’s operating partnership owned by minority interest. As
of December 31, 2000, there were approximately 237,935 OP Units which are convertible on a one-for-one basis (subject to certain
limitations) into common shares of the Company at the option of the unitholder. Minority interest in income with respect to OP Units
reflects the OP Units’ share of the net income of the Company, with net income allocated to minority interests with respect to
weighted average outstanding OP Units on a per unit basis equal to diluted earnings per common share. During the year ended