Public Storage 2000 Annual Report Download - page 42

P UBLIC S TORAGE , I NC . 2000 A NNUAL R EPORT
40
The combined interest expense and capitalized interest was $13,071,000 in 2000, $12,480,000 in 1999 and $7,988,000 in 1998.
The increase in 2000 as compared to 1999 is due to the carrying the $100 million of notes payable assumed in the merger with
Storage Trust for one full year in 2000 compared to 8.5 months during 1999, partially offset by regular principal amortization. The
increase in 1999 as compared to 1998 is due to the $100 million of notes payable assumed in the merger with Storage Trust.
Minority interest in income: Minority interest in income represents the income allocable to equity interests in Consolidated Entities,
which are not owned by the Company. Since 1990, we have acquired portions of these equity interests through our acquisition of
limited and general partnership interests in the Consolidated Entities. These acquisitions have resulted in reductions to the “Minority
interest in income” from what it would otherwise have been in the absence of such acquisitions, and accordingly, have increased our
share of the Consolidated Entities’ income.
In fiscal 1999 and 1998, we acquired sufficient ownership interest and control in various partnerships and commenced including
the accounts of these partnerships in the consolidated financial statements, resulting in an increase in minority interest in income.
The increase in minority interest in income in 2000 compared to 1999 is primarily related to the issuance of preferred operating
partnership units in one of our consolidated partnerships (see Note 8 to the consolidated financial statements). The decrease in
minority interest in income in 1999 compared to 1998 is the result of the deconsolidation of PSB, partially offset by the consolidation
of additional partnerships.
In determining income allocable to the minority interest for 2000, 1999 and 1998 consolidated depreciation and amortization
expense of approximately $7,138,000, $9,294,000 and $12,022,000, respectively, was allocated to the minority interest. The changes
in depreciation allocated to the minority interest were principally the result of the factors denoted above with respect to minority
interest in income.
S UPPLEMENTAL P ROPERTY D ATA AND T RENDS
At December 31, 2000, there were approximately 46 ownership entities owning in aggregate 1,361 storage facilities, including the
facilities which we own and/or operate. At December 31, 2000, 114 of these facilities were owned by Unconsolidated Entities, entities
in which we have an ownership interest and use the equity method for financial statement presentation. The remaining 1,247 facilities
are owned by the Company and Consolidated Entities.
The following table summarizes our investment in real estate facilities as of December 31, 2000:
Number of Facilities in which the Net Rentable Square Footage
Company has an ownership interest (in thousands)
Storage Commercial Storage Commercial
Facilities Properties Total Facilities Properties Total
Wholly-owned facilities 618 6 624 37,853 394 38,247
Facilities owned by Consolidated Entities 629 —629 36,717 —36,717
Total consolidated facilities 1,247 6 1,253 74,570 394 74,964
Facilities owned by Unconsolidated Entities 114 140 254 6,732 12,626 19,358
Total facilities in which the Company
has an ownership interest 1,361 146 1,507 81,302 13,020 94,322
In order to evaluate how our overall portfolio has performed, we analyze the operating performance of a consistent group of storage
facilities representing 949 (55.2 million net rentable square feet) of the 1,361 storage facilities (herein referred to as “Same Store”
storage facilities). The 949 facilities represent a consistent pool of properties which have been operated under the “Public Storage”
name, at a stabilized level, by the Company since January 1, 1994. From time to time, we remove facilities from the “Same Store”
pool as a result of expansions, dispositions or other activities which make such facilities’ results not comparable to previous periods.
The Same Store group of properties includes 82 facilities that are not consolidated in the financial statements. Accordingly, rental
income and cost of operations with respect to these 82 facilities are not reflected on the consolidated statements of income. As of
December 31, 2000, the remaining 867 facilities are included in the consolidated financial statements, however, many of them were