Public Storage 2001 Annual Report Download - page 61

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P
UBLIC S TORAGE ,I NC . 2001 A NNUAL R EPORT
D ISTRIBUTIONS
Public Storage, Inc. has paid quarterly distributions to its shareholders since 1981, its first full year of operations. Overall
distributions on Common Stock and Class B Common Stock for 2001 amounted to $193.1 million and $11.5 million,
respectively, which includes a special distribution declared on August 9, 2001 to common shareholders of record as of
September 15, 2001. The special distribution was paid in cash.
Holders of Common Stock are entitled to receive distributions when and if declared by the Company’s Board of Directors out
of any funds legally available for that purpose. We are required to distribute at least 90% of our net taxable ordinary income prior
to the filing of the Company’s tax return and 85%, subject to certain adjustments, during the calendar year, to maintain our REIT
status for federal income tax purposes. It is our intention to pay distributions of not less than this required amount.
For Federal tax purposes, distributions to shareholders are treated as ordinary income, capital gains, return of capital or a
combination thereof. For 2001, the dividends paid to the common shareholders ($1.69 per share), on all the various classes of
preferred stock, and on Equity Stock, Series A were characterized as ordinary income and long-term capital gain. The quarterly
breakdown is as follows:
Treatment of dividends paid for 2001
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Ordinary Income 96.60% 99.67% 100.00% 100.00%
Long-term Capital Gain 3.40% 0.33% 0.00% 0.00%
Total 100.00% 100.00% 100.00% 100.00%
For 2000, the dividends paid to the common shareholders ($1.48 per share), on all the various classes of preferred stock and on
Equity Stock, Series A were characterized as ordinary income and long-term capital gain. The quarterly breakdown is as follows:
Treatment of dividends paid for 2000
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Ordinary Income 96.10% 95.79% 99.04% 99.96%
Long-term Capital Gain 3.90% 4.21% 0.96% 0.04%
Total 100.00% 100.00% 100.00% 100.00%
In 1999, distributions to common shareholders were $1.53 for common shareholders who elected stock in a special dividend
declared in 2000 and $1.50 for common shareholders who elected cash in the special dividend, and were all ordinary income.
Beginning on January 1, 2000, the Company’s Class B Common Stock participates in distributions (other than liquidating
distributions) at the rate of 97% of the per-share distributions on the Common Stock, provided that cumulative distributions
of at least $0.22 per quarter per share have been paid on the Common Stock.
Distributions with respect to each Depositary Share Each Representing 1/1,000 of a Share of Equity Stock, Series A are equal
to the lesser of: a) five times the per share dividend on the Common Stock or b) $2.45 per annum (prorated for the year 2000).