Public Storage 2002 Annual Report Download - page 104

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PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002
F-27
2002 2001 2000
Depositary
Shares
Issuance
Amount
Depositary
Shares
Issuance
Amount
Depositary
Shares
Issuance
Amount
(Dollar amounts in thousands)
Amount at beginning
of year .......................
8,776,102
$ 188,174 5,635,602
$ 113,354
-
$ -
Public offerings............. - - 2,210,500 51,836 3,382,500 68,318
Direct placements ......... - - 930,000 22,984 - -
Special dividend ........... - - - - 2,200,555 44,011
Issued to related party
in connection with
the acquisition of
real estate facilities....
- - - -
52,547
1,025
Amount at end of
year ...............................
8,776,102
$ 188,174 8,776,102
$ 188,174
5,635,602
$ 113,354
The issuance amounts have been recorded as part of paid-in capital on the consolidated balance sheet.
The Equity Stock, Series A ranks on a parity with our common stock and junior to the Cumulative
Preferred Stock with respect to general preference rights and has a liquidation amount which cannot exceed
$24.50 per share. Distributions with respect to each depositary share shall be the lesser of: a) five times the per
share dividend on the common stock or b) $2.45 per annum. Except in order to preserve the Company’s federal
income tax status as a REIT, we may not redeem the depositary shares before March 31, 2010. On or after
March 31, 2010, we may, at our option, redeem the depositary shares at $24.50 per depositary share. If the
Company fails to preserve its federal income tax status as a REIT, each depositary share will be convertible into
0.956 shares of our common stock. The depositary shares are otherwise not convertible into common stock.
Holders of depositary shares vote as a single class with our holders of common stock on shareholder matters,
but the depositary shares have the equivalent of one-tenth of a vote per depositary share. We have no obligation
to pay distributions if no distributions are paid to common shareholders.
Equity Stock, Series AA
In June 1997, we contributed $22,500,000 (225,000 shares) of equity stock, now designated as Equity
Stock, Series AA (Equity Stock AA”) to a partnership in which we are the general partner. The Company has a
controlling interest in the partnership and therefore consolidates the accounts of the partnership. As a result, the
Equity Stock AA is eliminated in consolidation. The Equity Stock AA ranks on a parity with our common
stock and junior to the Cumulative Preferred Stock with respect to general preference rights and has a
liquidation amount of ten times the amount paid to each common share up to a maximum of $100 per share.
Quarterly distributions per share on the Equity Stock AA are equal to the lesser of (i) 10 times the amount paid
per share of Common Stock or (ii) $2.20. We have no obligation to pay distributions on these shares if no
distributions are paid to common shareholders.
If the Company determines that it is necessary to maintain its status as a Real Estate Investment Trust,
subject to certain limitations it may cause the redemption of shares of Equity Stock, Series AA at a price of
$100 per share. The shares are not otherwise redeemable or convertible into shares of any other class or series
of the Company’s capital stock. Other than as required by law, the Equity Stock, Series AA has no voting
rights.