Public Storage 2003 Annual Report Download - page 98

PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-19
and $24,124,000, respectively. In addition, during 2003 and 2002, we recognized gains of $187,000 and
$3,737,000, respectively, representing our share of PSBs gains on sale of investments in real estate; these gains
are presented in Equity in earnings from real estate entities in our consolidated income statement.
During 2003, 2002, and 2001, we invested a total of $340,000, $223,000, and $15,954,000 in the real
estate entities.
The following table sets forth our investments in the Unconsolidated Entities at December 31, 2003
and 2002 and our equity in earnings of real estate investments for each of the three years ended December 31,
2003:
Investments in Real Estate Entities at
December 31,
Equity in Earnings of Real Estate Entities for the
year ended December 31,
2003 2002 2003 2002 2001
PSB (a) .................................... $ 282,428 $ 273,790 $ 19,687 $ 24,461 $ 23,226
Other investments.................... 54,268 55,364 5,269 5,167 5,177
Disposed investments (b) ........ - 525 10 260 10,139
Total .................................. $ 336,696 $ 329,679 $ 24,966 $ 29,888 $ 38,542
(a) Included in equity in earnings for 2003 and 2002 is our pro-rata share of PSBs gain on sale of investments in real
estate in the amount of $187,000 and $3,737,000, respectively.
(b) Represents amounts associated with investments no longer held as of December 31, 2003. As described in Note 3, in
2002 we began consolidating the results of the Development Joint Venture and two other partnerships (the Acquired
Partnerships), and as a result eliminated our respective investment in each entity. In addition, we disposed of a real
estate investment during 2003, receiving net proceeds of $851,000, and recognizing a gain of $316,000 - representing
the excess of the net proceeds over the book value of this investment.
Investment in PS Business Parks, Inc. (PSB)
On January 2, 1997, we reorganized our commercial property operations into an entity now known as
PS Business Parks, Inc., a REIT traded on the American Stock Exchange, and an operating partnership
controlled by PS Business Parks, Inc. (collectively, the REIT and the operating partnership are referred to as
PSB). The Company and certain partnerships in which the Company has a controlling interest have a 44%
common equity interest in PSB as of December 31, 2003. This 44% common equity interest is comprised of the
ownership of 5,418,273 shares of common stock and 7,305,355 limited partnership units in the operating
partnership; these limited partnership units are convertible at our option, subject to certain conditions, on a one-
for-one basis into PSB common stock. Based upon PSBs trading price at December 31, 2003 ($41.26), the
shares and units had a market value of approximately $524,977,000 as compared to a book value of
$282,428,000.
At December 31, 2003, PSB owned and operated approximately 18.3 million net rentable square feet
of commercial space. In addition, PSB manages 960,000 net rentable square feet of commercial space owned
by the Company and the Consolidated Entities pursuant to property management agreements.
The following table sets forth the condensed statements of operations for each of the two years ended
December 31, 2003 and 2002, and the condensed balance sheets of PSB at December 31, 2003 and 2002. The
amounts below represent 100% of PSBs balances and not our pro-rata share.