Public Storage 2001 Annual Report Download - page 59

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P
UBLIC S TORAGE ,I NC . 2001 A NNUAL R EPORT
2001. As of December 31, 2001, the joint venture had 47 operating facilities, with 2,804,000 net rentable square feet and total
development costs of approximately $232 million. On January 16, 2002, we acquired the 70% interest from the institutional
investor for approximately $155,358,000 in cash. This transaction was principally financed with the capital raised through the
issuance of our 7.625% Cumulative Preferred Stock, Series T.
We recently mailed an information statement relating to the April 19, 2002 acquisition by the Company of all of the 55,150
limited partnership units that it did not own in PS Partners V, Ltd., a partnership which is consolidated with the Company. The
acquisition of the 55,150 units will be accomplished through a merger of a subsidiary of the Company into the partnership and
the conversion of the 55,150 units into either cash or common stock of the Company. Each unit will be converted into the right
to receive a value of $596 in our common stock or, cash at the election of the unitholder. We expect that the cash portion of the
transaction will be funded by available cash on hand.
In November 1999, we formed a second joint venture partnership for the development of approximately $100 million of
self-storage facilities. The venture is funded solely with equity capital consisting of 51% from us and 49% from the joint venture
partner. The term of the joint venture is 15 years. After six years, the joint venture partner has the right to cause the Company
to purchase the joint venture partner’s interest for an amount necessary to provide them with a maximum return of 10.75% or
less in certain circumstances. At December 31, 2001, this development joint venture was committed to develop 22 facilities
(approximately 1,464,000 net rentable sq. ft.), of which 20 facilities (approximately 1,285,000 net rentable sq. ft.) were
completed at an aggregate cost of approximately $96.0 million. As of December 31, 2001, this development joint venture is
developing two additional projects (approximately 144,000 net rentable square feet) that were in process, with total costs
incurred of $11.0 million and estimated remaining costs to complete of $700,000.
We currently have a development “pipeline” of 46 self-storage facilities, combination facilities, and expansions to existing self-
storage facilities with an aggregate estimated cost of approximately $298.4 million. Approximately $121.2 million of development
cost has been incurred as of December 31, 2001. We have acquired the land for 32 of these projects, which have an aggregate
estimated cost of approximately $200.4 million, and costs incurred as of December 31, 2001 of approximately $117.1 million.
The remaining 14 facilities represent identified sites where we have an agreement in place to acquire the land, generally within
one year. We anticipate that the development of these projects will be funded solely by the Company.
The development and fill-up of these storage facilities is subject to significant contingencies such as obtaining appropriate
governmental approvals. We estimate that the amount remaining to be spent of approximately $177.2 million will be incurred over the
next 18–24 months. The following table sets forth our development pipeline and a range of estimated opening dates for these projects:
Number Total Estimated Total Cost Incurred Estimated Time
of Cost of through December Frames of Facility
Facilities Development 31, 2001 Openings
Development – Land Acquired at 12/31/01
Self-storage facilities 23 $157,283 $91,103 Q1 ’02 – Q2 ’03
Expansions of existing self-storage facilities 6 23,165 7,321 Q1 ’02 – Q2 ’03
Expansion of existing self-storage facilities
into Combination Facilities 1 5,850 5,542 Q1 ’02
Combination facilities 2 14,136 13,111 Q1 ’02
Total 32 200,434 117,077
Potential Development – Land to be
Acquired After 12/31/01
Other self-storage facilities 14 97,971 4,104 Q4 ’02 – Q4 ’03
Total Development Pipeline 46 $298,405 $121,181