Public Storage 2002 Annual Report Download - page 64

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We currently have a development “pipeline” of 38 self-storage facilities, combination facilities, and
expansions to existing self-storage facilities with an aggregate estimated cost of approximately $199.8 million.
Approximately $87.5 million of development cost has been incurred as of December 31, 2002. We have acquired
the land for 36 of these projects, which have an aggregate estimated cost of approximately $188.6 million, and costs
incurred as of December 31, 2002 of approximately $86.7 million. The remaining 2 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 $112.2
million will be incurred over the next 18 – 24 months. The following table sets forth certain information with
respect to our development pipeline.
DEVELOPMENT PIPELINE SUMMARY
Number
of
projects
Net
rentable
sq. ft.
Total estimated
development
costs
Costs incurred
through
12/31/02
Costs to
complete
(Amounts in thousands)
Facilities currently under construction:
Self-storage facilities 16 1,155 $ 123,739 $ 76,814 $ 46,925
Expansions to existing self-storage
facilities 1
69 6,203 2,800 3,403
17 1,224 129,942 79,614 50,328
Facilities awaiting construction, where
land is acquired:
Self-storage facilities 4 272 29,007 6,161 22,846
Expansions of existing self-storage
facilities
15 661 29,602 964 28,638
19 933 58,609 7,125 51,484
Self-storage facilities awaiting
construction, where land has not yet been
acquired
2
123 11,209 777 10,432
Total Development Pipeline 38 2,280 $ 199,760 $ 87,516 $ 112,244
Included in expansions above is approximately $13 million associated with the conversion of 701,000 net
rentable square feet of industrial space, previously used by the discontinued containerized facility operations, into
self-storage space.
In addition to the above projects, we have 9 parcels of land held for development with total costs of
approximately $17,807,000 at December 31, 2002. These parcels will either be developed or sold.
Stock Repurchase Program: The Company’s Board of Directors has authorized the repurchase from time
to time of up to 25,000,000 shares of the Company’s common stock on the open market or in privately negotiated
transactions. During 2001, we repurchased a total of 10,585,593 common shares, for a total aggregate cost of
approximately $276.9 million. From the inception of the repurchase program through December 31, 2002, we have
repurchased a total of 21,497,020 shares of common stock at an aggregate cost of approximately $535.9 million.
We have not repurchased any significant amounts of our common stock since January 2002.
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk
To limit our exposure to market risk, we principally finance our operations and growth with permanent
equity capital consisting either of common or preferred stock. At December 31, 2002, the Company’s debt as a
percentage of total shareholders’ equity (based on book values) was 2.8%.