Public Storage 2002 Annual Report Download - page 94

PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002
F-17
total cost of approximately $9,993,000. We also completed expansions to existing self-storage facilities with a
total cost of approximately $81,259,000 and acquired one self-storage facility from a third party for
approximately $3,503,000 in cash.
During 2001, we disposed of two facilities and a parcel of land for a total of $20,241,000, composed of
$19,936,000 cash and a note receivable of $305,000. An aggregate gain of $4,091,000 was recorded on these
dispositions.
During 2000, we acquired a total of 13 facilities for an aggregate cost of $82,163,000 in connection
with a business combination (Note 3). In addition, we acquired 7 storage facilities from third parties for an
aggregate of $41,638,000 cash, and 5 storage facilities from entities in which we had an equity interest for at an
aggregate cost of $19,539,000, composed of $15,370,000 cash, the issuance of Equity Stock, Series A
($1,025,000) and an existing investment ($3,144,000). In addition, we acquired one industrial facility for
$5,930,000 cash.
During 2000, we opened 18 newly-developed traditional self-storage facilities at a total cost of
$82,819,000, 5 combination facilities at a total cost of $33,321,000 and opened an industrial facility we had
acquired and renovated for use in the containerized storage operations at a total cost of $6,518,000. In
addition, we completed expansions of existing storage facilities at a total cost of $12,437,000.
During 2000, we disposed of eight storage facilities and two parcels of land for an aggregate of
$20,561,000, consisting of cash ($10,444,000), the acquisition of minority interest ($6,427,000), and a note
receivable ($3,690,000). An aggregate gain of $296,000 was recorded on these dispositions.
At December 31, 2002, the unaudited adjusted basis of real estate facilities for Federal income tax
purposes was approximately $3.0 billion.
Construction in process and land held for development
Construction in process consists of land and development costs relating to the development of storage
facilities. At December 31, 2002, construction in process consists primarily of 20 facilities being developed on
newly acquired land and the expansion of 16 existing self-storage facilities. In addition, we have nine parcels of
land held for development with total costs of approximately $17,807,000.
6. Investments in real estate entities
At December 31, 2002, our investments in real estate entities consist of ownership interests in seven
partnerships, which principally own self-storage facilities, and our ownership interest in PSB. These interests
are non-controlling interests of less than 50% and are accounted for using the equity method of accounting.
Accordingly, earnings are recognized based upon our ownership interest in each of the partnerships. The
accounting policies of these entities are similar to the Company’s.
During 2002, 2001 and 2000, we recognized earnings from our investments of $29,888,000,
$38,542,000 and $39,319,000, respectively, and received cash distributions totaling $19,496,000, $24,124,000
and $16,984,000, respectively. In addition, during 2002 and 2000, we recognized gains of $3,737,000 and
$3,210,000, respectively, representing our share of PSB’s gains on sale of real estate and real estate
investments; these gains are presented in “Equity in earnings from real estate entities” in our consolidated
income statement.
During 2002, 2001, and 2000, we invested a total of $223,000, $15,954,000, and $37,406,000 in the
real estate entities.