Public Storage 2000 Annual Report Download - page 48

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P
UBLIC
S
TORAGE
, I
NC
. 2000 A
NNUAL
R
EPORT
46
Stock repurchase program: As previously announced, the Company’s Board of Directors authorized the repurchase from time to time
of up to 15,000,000 shares of the Company’s common stock on the open market or in privately negotiated transactions. On March
15, 2001, the Board of Directors increased the repurchase authorization to 20,000,000 shares. During 2000, we repurchased
a total of 3,417,700 shares, for a total aggregate cost of approximately $77.8 million. From the inception of the repurchase program
through December 31, 2000, we have repurchased a total of 10,826,527 shares of common stock at an aggregate cost of approx-
imately $257.0 million. From January 1, 2001 until March 14, 2001, the Company repurchased a total of 3,961,800 shares at an
aggregate cost of approximately $102.2 million.
Funds from operations: Total funds from operations or “FFO” increased to $452.2 million for the year ended 2000 compared
to $429.0 million for the year ended 1999 and $336.4 million in 1998. FFO available to common shareholders (after deducting
preferred stock dividends) increased to $340.9 million for the year ended December 31, 2000 compared to $334.2 million in 1999
and $258.0 million in 1998. FFO means net income (loss) (computed in accordance with generally accepted accounting principles)
before (i) gain (loss) on early extinguishment of debt, (ii) minority interest in income and (iii) gain (loss) on disposition of real estate,
adjusted as follows: (i) plus depreciation and amortization related to real estate assets (including the Company’s pro-rata share of
depreciation and amortization of unconsolidated equity interests and amortization of assets acquired in a merger, including property
management agreements and goodwill), and (ii) less FFO attributable to minority interests.
FFO is a supplemental performance measure for equity REITs as defined by the National Association of Real Estate Investment Trusts,
Inc. (“NAREIT”). The NAREIT definition does not specifically address the treatment of minority interest in the determination of FFO
or the treatment of the amortization of property management agreements and goodwill. In the case of the Company, FFO represents
amounts attributable to its shareholders after deducting amounts attributable to the minority interests and before deductions for the
amortization of property management agreements and goodwill. FFO is presented because management, as well as many industry
analysts, consider FFO to be one measure of the performance of the Company and it is used in establishing the terms of the Class B
Common Stock. FFO does not take into consideration capital improvements, scheduled principal payments on debt, distributions and
other obligations of the Company. Accordingly, FFO is not a substitute for the Company’s cash flow or net income (as discussed above)
as a measure of the Company’s liquidity or operating performance. FFO is not comparable to similarly entitled items reported by other
REITs that do not define it exactly as we have defined it.