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22
P
UBLIC
S
TORAGE
,I
NC
. 2001 A
NNUAL
R
EPORT
Note 8 — Minority Interest
In consolidation, we classify ownership interests in the net assets of each of the Consolidated Entities, other than our own, as
minority interest on the consolidated financial statements. Minority interest in income consists of the minority interests’ share
of the operating results of the Company relating to the consolidated operations of the Consolidated Entities.
Preferred Partnership Interests:
During 2000, one of our consolidated operating partnerships issued in aggregate $365.0 million of preferred partnership units:
March 17, 2000 – $240.0 million of 9.5% Series N Cumulative Redeemable Perpetual Preferred Units, March 29, 2000 –
$75.0 million of 9.125% Series O Cumulative Redeemable Perpetual Preferred Units, and August 11, 2000 – $50.0 million
of 8.75% Series P Cumulative Redeemable Perpetual Preferred Units.
We incurred approximately $3,750,000 in costs in connection with the issuances; these costs were recorded as a reduction to
Paid in Capital during 2000. The issuance of these units in 2000 had the effect of increasing minority interest by $365.0 million.
For the years ended December 31, 2001 and 2000, the holders of these preferred units were paid in aggregate approximately
$31,737,000 and $24,859,000, respectively, in distributions and received an equivalent allocation of minority interest in earnings.
During 2001, we repurchased all of the 8.75% Series P Cumulative Redeemable Perpetual Preferred Units and $30 million of
the 9.125% Series O Cumulative Redeemable Perpetual Preferred Units. The units were repurchased at an amount equal to the
original issuance price.
The following table summarizes the preferred partnership units outstanding:
At December 31, 2001 At December 31, 2000
(Dollar and unit amounts in thousands)
Distribution Units Carrying Units Carrying
Series Rate Outstanding Amount Outstanding Amount
Series N 9.500% 9,600 $240,000 9,600 $240,000
Series O 9.125% 1,800 45,000 3,000 75,000
Series P 8.750% — — 2,000 50,000
Total 11,400 $285,000 14,600 $365,000
These preferred units are not redeemable during the first 5 years, thereafter, at our option, we can call the units for redemption
at the issuance amount plus any unpaid distributions. The units are not redeemable by the holder. Subject to certain conditions,
the Series N preferred units are convertible into shares of 9.5% Series N Cumulative Preferred Stock, and the Series O preferred
units are convertible into shares of 9.125% Series O Cumulative Preferred Stock of the Company.
Other Partnership Interests:
Other partnership interests included in minority interest consists of the following:
Minority interest in income Minority interest for the year ended
(In thousands)
at December 31, December 31,
Description 2001 2000 2001 2000 1999
Consolidated Development Joint Venture $ 82,879 $ 77,126 $ 1,074 $ 325 $ 8
Convertible OP Units 6,418 6,461 359 577 1,175
Other consolidated partnerships 80,304 84,331 12,845 12,595 14,823
Total other partnership interests $169,601 $167,918 $14,278 $13,497 $16,006