Public Storage 2003 Annual Report Download - page 64

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We used approximately $1,034,521,000 of these net proceeds in order to redeem higher-coupon preferred
securities, as follows:
Security Redeemed or Repurchased
Date Redeemed or
Repurchased
Cumulative
Preferred Stock
Preferred
Partnership
Units
(in thousands)
9.125% Cumulative Preferred Units, Series O August 31, 2001 $ - $ 30,000
8.875% Cumulative Preferred Stock, Series G September 28, 2001 172,525 -
8.450% Cumulative Preferred Stock, Series H October 5, 2001 168,775 -
8.750% Cumulative Preferred Units, Series P October 15, 2001 - 50,000
8.625% Cumulative Preferred Stock, Series I November 13, 2001 100,025 -
10.00% Cumulative Preferred Units, Series A September 30, 2002 45,643 -
8.000% Cumulative Preferred Stock, Series J October 7, 2002 150,018 -
Cumulative Preferred Stock, Series C October 7, 2002 30,018 -
9.200% Cumulative Preferred Stock, Series B March 31, 2003 57,517 -
8.250% Cumulative Preferred Stock, Series K January 19, 2004 115,000 -
8.250% Cumulative Preferred Stock, Series L March 10, 2004 115,000 -
$ 954,521 $ 80,000
The Cumulative Preferred Stock amounts listed above include redemption costs.
During 2005, approximately $398 million of preferred securities become redeemable, at our option, having
a weighted average rate of 9.6%. It is our intent to redeem these securities with lower rate preferred securities. As
indicated above, we recently issued preferred securities with a rate of 6.25%. There is no assurance that rates will
continue at these historical low levels. We may, during the course of 2004, issued preferred stock in anticipation of
the aforementioned 2005 redemptions.
Requirement to Pay Distributions: We have operated, and intend to continue to operate, in such a manner
as to qualify as a REIT under the Internal Revenue Code of 1986, but no assurance can be given that we will at all
times so qualify. To the extent that the Company continues to qualify as a REIT, we will not be taxed, with certain
limited exceptions, on the taxable income that is distributed to our shareholders, provided that at least 90% of our
taxable income is so distributed to our shareholders prior to filing of the Companys tax return. We have satisfied
the REIT distribution requirement since 1980.
Aggregate dividends paid during 2003 totaled $146.2 million to the holders of our Cumulative Preferred
Stock, $225.9 million to the holders of our Common Stock and $21.5 million to the holders of our Equity Stock,
Series A. Although we have not finalized the calculation of our 2003 taxable income, we believe that the aggregate
dividends paid in 2003 to our shareholders enabled us to continue to qualify as a REIT.
We estimate that the distribution requirements for fiscal 2004 with respect to our Cumulative Preferred
Stock outstanding, and assuming the redemption of Cumulative Preferred Stock, Series K, will be approximately
$147.6 million.
During 2003, we paid distributions totaling $26.9 million with respect to our Preferred Partnership Units.
We estimate the annual distributions requirements with respect to the preferred partnership units outstanding at
December 31, 2003 to be approximately $26.9 million.
For 2003, distributions with respect to the Common Stock and Equity Stock, Series A will be determined
based upon our REIT distribution requirements after taking into consideration distributions to the preferred
shareholders. We anticipate that, at a minimum, quarterly distributions per common share will remain at $0.45 per
common share. For the first quarter of 2004, a quarterly distribution of $0.45 per common share has been declared
by our Board of Directors.