Public Storage 2002 Annual Report Download - page 62

52
Security Redeemed or Repurchased
Date Redeemed or
Repurchased
Cumulative
Preferred Stock
Preferred
Partnership
Units
(in thousands)
9.125% Cumulative Preferred Units, Series O August 31, 2001 $ - $ 30,000
8 7/8% Cumulative Preferred Stock, Series G September 28, 2001 172,525 -
8.45% Cumulative Preferred Stock, Series H October 5, 2001 168,775 -
8.75% Cumulative Preferred Units, Series P October 15, 2001 - 50,000
8 5/8% Cumulative Preferred Stock, Series I November 13, 2001 100,025 -
10.0% Cumulative Preferred Units, Series A September 30, 2002 45,643 -
8.0% Cumulative Preferred Stock, Series J October 7, 2002 150,018 -
$ 636,986 $ 80,000
The Cumulative Preferred Stock amounts listed above include redemption cost of approximately $25,000
per redemption for 2001 and $18,000 per redemption for 2002.
We have called for redemption our 9.2% Senior Preferred Stock Series B which will be redeemed on
March 31, 2003. The aggregate redemption amount for this security is $25 per share or approximately $57.5 million
in the aggregate, plus accrued dividends.
Requirement to Pay Distributions: We have operated, and intend to continue to operate, in such a manner
as to qualify as a REIT under the Internal Revenue Code of 1986, but no assurance can be given that we will at all
times so qualify. To the extent that the Company continues to qualify as a REIT, we will not be taxed, with certain
limited exceptions, on the taxable income that is distributed to our shareholders, provided that at least 90% of our
taxable income is so distributed to our shareholders prior to filing of the Company’s tax return. We have satisfied
the REIT distribution requirement since 1980.
Aggregate dividends paid during 2002, totaled $148.9 million to the holders of our Cumulative Preferred
Stock, $209.1 million to the holders of our Common Stock, $12.2 million to the holders of our Class B Common
Stock and $21.5 million to the holders of our Equity Stock, Series A. Although we have not finalized the calculation
of our 2002 taxable income, we believe that the aggregate dividends paid in 2002 to our shareholders were designed
to enable us to continue to qualify as a REIT.
We estimate that the distribution requirements for fiscal 2003 with respect to our Cumulative Preferred
Stock outstanding, and assuming the redemption of Cumulative Preferred Stock, Series B, will be approximately
$144.2 million.
During 2002, we paid distributions totaling $26.9 million with respect to our Preferred Partnership Units.
We estimate the annual distributions requirements with respect to the preferred partnership units outstanding at
December 31, 2002 to be approximately $26.9 million.
For 2003, distributions with respect to the Common Stock and Equity Stock, Series A will be determined
based upon our REIT distribution requirements after taking into consideration distributions to the preferred
shareholders. We anticipate that, at a minimum, quarterly distributions per common share will remain at $0.45 per
common share (increased from $0.22 per common share during 2000 and in the first two quarters of 2001). For the
first quarter of 2003, a quarterly distribution of $0.45 per common share has been declared by our Board of
Directors. Prior to 2002, in addition to the regular quarterly dividends paid to our common shareholder, we also
paid special distributions. These special distributions were necessary to meet our distribution requirements in order
to maintain our REIT tax status. While we don’t expect to need a special distribution in 2003, the need to make a
special distribution is not determinable at this time and will depend in large part on our taxable income relative to
the distributions being paid to all of our shareholders.
With respect to the depositary shares of Equity Stock, Series A, we have no obligation to pay distributions
if no distributions are paid to the common shareholders. To the extent that we do pay common distributions in any
year, the holders of the depositary shares receive annual distributions equal to the lesser of (i) five times the per