Public Storage 2003 Annual Report Download - page 59

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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. The following table summarizes minority interest
in income for each of the three years ended December 31, 2003:
Minority interest in income for the year ended
Description
December 31,
2003
December 31,
2002
December 31,
2001
(in thousands)
Preferred partnership interests.................................. $ 26,906 $ 26,906 $ 31,737
Consolidated Development Joint Venture (a) .......... 2,905 2,399 1,074
Newly Consolidated Partnerships (b)....................... 3,649 3,357 -
Convertible Partnership Units (c)............................. 305 283 359
Acquired minority interests (d) ................................ 415 3,003 4,611
Other minority interests (e)...................................... 9,523 8,139 8,234
Total minority interests in income ........................... $ 43,703 $ 44,087 $ 46,015
(a) These amounts reflect income allocated to the minority interests in the Consolidated Development Joint Venture.
Included in minority interest in income is $3,362,000, $3,227,000, and $2,386,000 in depreciation expense for the
years ended December 31, 2003, 2002, and 2001, respectively.
(b) These amounts reflect the minority interests in two partnerships that we began consolidating effective January 1,
2002, as described in Note 3 to the Companys consolidated financial statements. Included in minority interest in
income is $647,000 and $721,000 in depreciation expense for the years ended December 31, 2003 and 2002.
(c) These amounts reflect the minority interests represented by the Convertible Partnership Units (see Note 9 to the
consolidated financial statements). Included in minority interest is $342,000, $354,000, and $308,000 in
depreciation expense for the years ended December 31, 2003, 2002, and 2001, respectively.
(d) These amounts reflect income allocated to minority interests that the Company acquired as of December 31, 2003,
and are therefore no longer outstanding at December 31, 2003. Included in minority interest in income is
$216,000, $2,286,000, and $3,000,000 in depreciation expense for the years ended December 31, 2003, 2002, and
2001, respectively.
(e) These amounts reflect income allocated to minority interests that were outstanding consistently throughout the
three years ended December 31, 2003. Included in minority interest in income is $1,761,000, $1,499,000, and
$2,153,000 in depreciation expense for the years ended December 31, 2003, 2002, and 2001, respectively.
On March 17, 2000, one of our consolidated operating partnerships issued $240.0 million of 9.5% Series N
Cumulative Redeemable Perpetual Preferred Units. On March 29, 2000 the partnership issued $75.0 million of
9.125% Series O Cumulative Redeemable Perpetual Preferred Units and on August 11, 2000, issued $50.0 million
of 8.75% Series P Cumulative Redeemable Perpetual Preferred Units. In August 2001, we repurchased, at par, $30
million of 9.125% Series O Cumulative Redeemable Perpetual Preferred Units. In October 2001, we repurchased, at
par, $50 million of 8.75% Series P Cumulative Redeemable Perpetual Preferred Units. For the years ended
December 31, 2001, 2002, and 2003, the holders of our preferred partnership units were paid in aggregate
approximately $31,737,000, $26,906,000 and $26,906,000, respectively, in distributions and received a
corresponding allocation of minority interest in earnings for the respective period. We estimate that during 2004 we
will pay aggregate distributions totaling $26.9 million to these units with a corresponding allocation of income to
minority interest in earnings.
In November 1999, we formed a development joint venture (the Consolidated Development Joint
Venture) with a joint venture partner whose partners include an institutional investor and the Companys Chairman
and former CEO, B. Wayne Hughes (Mr. Hughes). The Consolidated Development Joint Venture is funded solely
with equity capital consisting of 51% from the Company and 49% from the joint venture partner. Included in
minority interest in income for the years ended December 31, 2001, 2002, and 2003 is $1,074,000, $2,399,000, and
$2,905,000, respectively, representing our joint venture partners pro-rata interest in the operations of the
Consolidated Development Joint Venture. The facilities in the entity are newly developed facilities that are all in the
fill-up phase. The increase in minority interest in income in 2003 and 2002 as compared to the preceding years with