Public Storage 2010 Annual Report Download - page 10
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self-storage revenues, net operating income, dividends per share, share price and shares outstanding.
Key Operating and Financial Metrics
annual
1980 1990 2000 2010 increase
The business strategies behind these numbers were very different.
During the first decade (1980-1990), we grew by acquiring assets in tandem with limited partnerships
sponsored by Public Storage, using a combination of cash, debt and common stock. The dividend
was set at FFO and not our taxable income. By the end of the decade, we realized that both our
use of debt and dividend policy were incorrect, leading us to an alternative source of “leverage” and
to reduce our dividend to taxable income. While our growth in terms of revenues and NOI were
the highest of any decade, returns to owners were disappointing. However, the key to investing
is the “windshield” – not the “rear view mirror” – and having corrected our mistakes, the next 20
years provided exceptional returns to our owners.
The next decade (1990-2000) was principally one of “consolidation” through the acquisition of
other entities sponsored by Public Storage, highlighted by the acquisition of Public Storage in
We funded this growth with perpetual preferred stock (the first REIT to issue this security),
During the last decade (2000-2010), we moved to “industry consolidator,” acquiring Storage Trust
in 1999 (215 properties, 12.0 million square feet) and Shurgard in 2006 (643 properties, 40.2
million square feet), as well as properties owned by other third parties (162 properties,
11.2 million square feet). In addition, beginning in 1999, the Company began to aggressively
Compounded