Public Storage 2006 Annual Report Download

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PUBLIC ST
PUBLIC SGE, INC.
lendale, California 91201-2349
(818) 244-8080 •.publicstorage.com
(SKU 002CS13720)
P
UBLIC
S
TORAGE
, I
NC
.
A
NNUAL
R
EPORT

Table of contents

  • Page 1
    P UBLIC S TORAGE , I NC . 2 0 0 6 A R N N U A L E P O R T

  • Page 2
    ... Net Rentable Square Feet UNITED STATES Alabama Arizona California Colorado Connecticut Delaware Florida Georgia Hawaii Illinois Indiana Kansas Kentucky Louisiana Maryland Massachusetts Michigan Minnesota Mississippi Missouri Nebraska Nevada New Hampshire New Jersey New York North Carolina 22 37...

  • Page 3
    ...For the year ended December 31, 2006(1) Revenues: Rental income and ancillary operations Interest and other income Total Revenues Expenses: Cost of operations Depreciation and amortization General and administrative Interest expense Income from continuing operations before equity in earnings of real...

  • Page 4
    ... corporate and executive functions and migrating Shurgard's domestic portfolio onto Public Storage's centralized operating system, WebChamp. Second, there was an opportunity to eliminate redundant property operating costs such as duplicate Yellow Pages, back office support functions and call centers...

  • Page 5
    ...would not have pursued the merger for a few cents of earnings accretion. The real value lies in the opportunity to achieve lower costs and higher revenues in Shurgard's domestic and European properties and lower the operating costs of Public Storage's domestic portfolio (through economies of scale).

  • Page 6
    ...'s review how we are achieving these "potential benefits" and improving our intrinsic value. Domestic Operations With respect to our domestic operations, we had four objectives at the time the merger closed. First, combine our corporate offices and reduce G&A costs. Shurgard's corporate staff has...

  • Page 7
    ... drive occupancy and revenue growth by sharing the marketing and pricing strategies used in our domestic business. The European support staff, which consists of all operations management and support functions, real estate and corporate staff, has been reduced from about 185 at the beginning of 2006...

  • Page 8
    ... with improvement in our newly developed and acquired properties. Excluding "integration costs," the Shurgard portfolio had very little impact on our 2006 operating results. Let's review how each aspect of our business performed in 2006. Net Operating Income by Category (Dollar amounts in thousands...

  • Page 9
    ... at a total cost of $115 million, adding 440,000 net rentable square feet, and 17 expansion projects at a total cost of $46 million, adding 520,000 net rentable square feet to our portfolio. Our future development and expansion activities should continue to provide growth. At year end 2006, we had...

  • Page 10
    ..., benefiting from a larger group of properties. The earnings contribution from these businesses is expected to increase as the number of self-storage facilities we operate continues to grow and we have a full year's ownership of the Shurgard properties. (Dollar amounts in thousands) 2006 $ 93...

  • Page 11
    ...strength of Public Storage. We have the lowest debt relative to size and the highest retained cash levels of any REIT in the U.S. We are prepared for the "unexpected" to take advantage of "unexpected opportunities." Investment in PS Business Parks At year end, PS Business Parks' (PSB) equity market...

  • Page 12
    ... to historical levels. Improving market conditions should drive higher occupancies and revenue per square foot. Conclusion and Outlook 2006 was a challenging year. Our 5,000 employees worked hard to produce solid results in all our businesses and successfully integrate Shurgard. The results of our...

  • Page 13
    ... December 31, 2006 $400 $350 $300 $250 $200 $150 $100 $ 50 $ 0 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 Public Storage, Inc. S&P... appreciation plus dividends). The stock price performance graph assumes that the value of the investment in the Company's Common Stock and each index was $...

  • Page 14
    ...generally defined as net income before depreciation and gains and losses on real estate assets. FFO is presented because management... Net cash provided by operating activities FFO ...operations 780,831 Less: allocations to preferred and equity stock shareholders: Senior Preferred (245,711) Equity Stock...

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    ... John M. Sambuco Vice President-Operations Frank J.E. Boot Marketing Director Wim E.M. Van Beveren Vice President-Development Jean L.H. Kreusch Chief Financial Officer Kris S.A. Van Mieghem General Counsel David L. Coupez Vice President-Information Systems Professional Services Transfer Agent...

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    P UBLIC S TORAGE , I NC . 701 Western Avenue, Glendale, California 91201-2349 (818) 244-8080 • www.publicstorage.com (SKU 002CS13720)