Public Storage 2007 Annual Report Download - page 14

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For the year ended December 31,
(Amounts in thousands, except per share amounts) 2007 2006 2005
Net income: $ 457,535 $314,026 $456,393
Depreciation and amortization 622,410 437,568 196,153
Depreciation and amortization included in
discontinued operations 484 650 332
Less - depreciation with respect to non-real estate assets (406) (225) (1,789)
Depreciation from unconsolidated real estate investments 45,307 38,890 35,425
Gain on sale of real estate assets (6,883) (4,547) (8,279)
Less - our share of gain on sale of real estate included
in equity of earnings of real estate entities — (1,047) (7,858)
Minority interest share of income 29,543 31,883 32,651
Net cash provided by operating activities 1,147,990 817,198 703,028
FFO to minority interest - common (21,989) (17,312) (18,782)
FFO to minority interest - preferred (21,612) (19,055) (17,021)
Funds from operations 1,104,389 780,831 667,225
Less: allocations to preferred and equity shareholders:
Senior Preferred (236,757) (245,711) (180,555)
Equity Shares, Series A (21,424) (21,424) (21,443)
FFO allocable to our common shareholders $ 846,208 $513,696 $465,227
Weighted average shares outstanding:
Common shares 169,342 142,760 128,159
Stock-based compensation dilution 805 955 660
Weighted average common shares for purposes of
computing fully-diluted FFO per common share 170,147 143,715 128,819
FFO per common share $ 4.97 $ 3.57 $ 3.61
Computation of Funds from Operations (unaudited)
Funds from operations (“FFO”) is a term defined by the National Association of Real Estate Investment
Trusts (“NAREIT”). FFO is a supplemental non-GAAP financial disclosure, and it is generally defined
as net income before depreciation and gains and losses on real estate assets. FFO is presented because
management and many analysts consider FFO to be one measure of the performance of real estate
companies and because we believe that FFO is helpful to investors as an additional measure of the
performance of a REIT. FFO computations do not consider scheduled principal payments on debt,
capital improvements, distribution and other obligations of the Company. FFO is not a substitute for
our cash flow or net income as a measure of our liquidity or operating performance or our ability to pay
dividends. Other REITs may not compute FFO in the same manner; accordingly, FFO may not be
comparable among REITs.