Public Storage 2003 Annual Report Download - page 97

PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-18
sale of $5,121,000 was recorded for these sales, combined with an impairment charge in the amount of
$750,000 which was recorded when it was determined that the industrial facility would be sold for less than its
book value. The gain and impairment charge are included in Discontinued Operations.
In addition, during 2003 we sold excess land and completed the sale of two additional self-storage
facilities for aggregate net proceeds of $13,082,000, recognizing a net gain on sale of $691,000. The two self-
storage facilities had been operated by the buyer pursuant to a lease arrangement, with the lease income with
respect to these two facilities included in Interest and Other Income.
During 2002, we opened 14 newly developed traditional self-storage facilities with an aggregate cost
of $92,109,000 and two newly developed facilities that combine traditional self-storage facilities and
containerized storage facilities in the same location (Combination Facilities) with an aggregate cost of
$14,852,000. We also completed expansions to existing self-storage facilities with a total cost of $27,814,000
and acquired nine self-storage facilities, in separate transactions from third parties, for $30,117,000 cash.
During 2002, we sold four plots of land and one commercial facility for an aggregate of $15,702,000,
consisting of $15,209,000 of cash and notes receivable in the amount of $493,000. An aggregate loss in the
amount of $702,000 was recorded on the sale of these properties.
During 2001, we opened 12 newly developed self-storage facilities at a total cost of approximately
$66,905,000 and 10 Combination Facilities at a total cost of approximately $106,004,000. In addition, we
opened an industrial facility we had acquired and renovated for use in the containerized storage operations, at a
total cost of approximately $9,993,000. We also completed expansions to existing self-storage facilities with a
total cost of approximately $81,259,000 and acquired one self-storage facility from a third party for
approximately $3,503,000 in cash.
During 2001, we disposed of two facilities and a parcel of land for a total of $20,241,000, composed of
$19,936,000 cash and a note receivable of $305,000. An aggregate gain of $4,091,000 was recorded on these
dispositions.
At December 31, 2003, the unaudited adjusted basis of real estate facilities for federal tax purposes
was approximately $3.0 billion.
Construction in process and land held for development
Construction in process consists of land and development costs relating to the development of storage
facilities. At December 31, 2003, construction in process consists primarily of 13 facilities that will be
developed on newly acquired land and the expansion and remodeling of 25 existing self-storage facilities. In
addition, at December 31, 2003 we have five parcels of land held for development with total costs of
approximately $12,236,000.
6. Investments in real estate entities
At December 31, 2003, our investments in real estate entities consist of ownership interests in seven
partnerships, which principally own self-storage facilities, and our ownership interest in PSB. These interests
are non-controlling interests of less than 50% and are accounted for using the equity method of accounting.
Accordingly, earnings are recognized based upon our ownership interest in each of the partnerships. The
accounting policies of these entities are similar to the Companys.
During 2003, 2002 and 2001, we recognized earnings from our investments of $24,966,000,
$29,888,000, and $38,542,000, respectively, and received cash distributions totaling $17,754,000, $19,496,000,