Public Storage 2000 Annual Report Download - page 20

P UBLIC S TORAGE , I NC . 2000 A NNUAL R EPORT
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Construction in process consists primarily of 53 new facilities and 25 expansions of existing facilities with total incurred costs of
approximately $234.3 million (of which 6 facilities with total incurred costs of approximately $23.8 million are held by the second
joint venture), as well as costs associated with facilities we have not acquired the land for.
At December 31, 2000, the unaudited adjusted basis of real estate facilities for Federal income tax purposes was approximately
$3.0 billion.
Note 5 —
Investments in Real Estate Entities
Summarized combined financial data with respect to those real estate entities in which the Company had an ownership interest at
December 31, 2000 are as follows:
(Amounts in thousands) Other Development
For the year ended December 31, 2000: Equity Investments Joint Venture PSB Total
Rental income $ 41,240 $ 25,548 $144,171 $ 210,959
Other income 1,880 699 6,463 9,042
Total revenues 43,120 26,247 150,634 220,001
Cost of operations 10,469 9,346 39,290 59,105
Depreciation and amortization 4,437 6,290 35,637 46,364
Other expenses 5,700 1,641 5,890 13,231
Total expenses 20,606 17,277 80,817 118,700
Net income before minority interest and gain on
real estate investments 22,514 8,970 69,817 101,301
Minority interest ——(26,741) (26,741)
Income before gain on real estate investments 22,514 8,970 43,076 74,560
Gain on real estate investments ——8,105 8,105
Net income $ 22,514 $ 8,970 $ 51,181 $ 82,665
At December 31, 2000:
Real estate, net $ 67,580 $219,043 $864,711 $1,151,334
Total assets $100,129 $222,670 $930,756 $1,253,555
Total liabilities $ 40,332 $ 3,899 $ 59,935 $ 104,166
Preferred equity $ — $ — $199,750 $ 199,750
Total common/partners’ equity $ 59,797 $218,771 $671,071 $ 949,639
The Company’s investment (book value) at
December 31, 2000 $123,743 $ 65,631 $259,554 $ 448,928
The Company’s effective average ownership interest
at December 31, 2000
(A)
44% 30% 42%
(A) Reflects our ownership interest with respect to total common/partners’ equity.
At December 31, 2000, our investments in real estate entities consist of ownership interests in 11 partnerships, which principally
own self-storage facilities, and an ownership interest in PSB. Such 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 2000, 1999 and 1998,
we recognized earnings from our investments of $36,109,000, $32,183,000 and $26,602,000, respectively, and received cash
distributions totaling $16,984,000, $15,949,000 and $17,968,000, respectively. In addition, during 2000, we recognized a gain of
$3,210,000, representing our share of PSB’s gains on sale of real estate and real estate investments; this gain is presented as “Gain
on the disposition of real estate and real estate investments”.
During 2000, we disposed of investments in real estate entities, for total proceeds of $47,875,000. We recorded a net gain of
$280,000 as “Gain on the disposition of real estate and real estate investments” representing the difference between our cost and
the proceeds received.