Public Storage 2007 Annual Report Download

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PUBLIC STORAGE
2007
ANNUAL
REPORT

Table of contents

  • Page 1
    P UBLIC S TORAGE 2 0 0 7 A R N N UA L E P O R T

  • Page 2
    ...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 37 372 60 14 5 191...

  • Page 3
    ...Cash Flow Information: Net cash provided by operating activities Net cash used in ...operations, depreciation and amortization, and interest expense in 2006 and 2007, and the significant increase in total assets, total debt and shareholders' equity in 2006, is due to our acquisition of Shurgard Storage...

  • Page 4
    ... which consist mostly of "flex" space, or a combination of office and industrial space. These properties are operated under the "PS Business Parks" name. Through our equity investment in PS Business Parks, a separately listed public company (AMEX:PSB), and our direct ownership of properties, we have...

  • Page 5
    ...have over one million customers and generally must attract over one million new or repeat customers each year Summary of Financial Results In 2007, total revenues grew by 32% to $1.8 billion, benefiting from a full year of operating the acquired Shurgard domestic and European facilities compared to...

  • Page 6
    ... share of PS Business Parks' net income, which is included in operating earnings), casualty gains and losses, gains on disposition, foreign currency gains, derivative income or expense, minority interest in income, cumulative effect adjustments and discontinued operations. (2) Shurgard acquisition...

  • Page 7
    ... can see in the table, both REVPAF and gross profit margin increased across all portfolios last year, resulting in higher net operating income. REVPAF (1) (per sq. ft.) 2007 Public Storage-U.S. Same Store Shurgard-U.S. Same Store Shurgard-Europe Same Store Other properties-U.S. and Europe $ 11.37...

  • Page 8
    Gross Profit Margin (1)(2) 2007 Public Storage-U.S. Same Store Shurgard-U.S. Same Store Shurgard-Europe Same Store Other properties-U.S. and Europe 67.4% 67.3% 59.9% 59.0% 2006 66.9% 62.5% 53.2% 54.0% Change 0.5% 4.8% 6.7% 5.0% (1) Shurgard data for 2006 represents the historical data operated ...

  • Page 9
    ... Our investment in commercial properties consists of our 45% equity ownership of PS Business Parks (PSB) and our wholly-owned properties which are generally contiguous to our self-storage properties. PSB owns and operates about 20 million square feet. We effectively own ten million square feet...

  • Page 10
    ... profit margin $13.18 68.4% 2006 $12.74 68.3% Change $ 0.44 0.1% (1) Reflects pro rata share of PS Business Parks and wholly-owned Public Storage properties. Net Operating Income (Before depreciation) Dollar amounts in millions 2007 $ 54 9 $ 63 2006 $ 48 8 $56 Change $6 1 $7 PS Business Parks...

  • Page 11
    ... accomplish most of the objectives of the public offering. Our plan is to retain a significant equity interest in Shurgard Europe and participate in this huge growth opportunity. Financial Policies Owning real estate is a capital intensive business. When conducted within the structure of a Real...

  • Page 12
    ... over $400 million of net operating cash flow in the Company (after required maintenance capital expenditures and our required distribution requirements) which can be "leveraged" with preferred stock to provide "growth" capital. Over the last ten years, we have generally issued common equity only in...

  • Page 13
    ...31/03 12/31/04 12/31/05 12/31/06 12/31/07 Public Storage S&P 500 Index NAREIT Equity Index $100.00 $100.00 $100.00...Company's cumulative total shareholder return on its Common Stock for the five-year period ended December 31, 2007 to the cumulative total return of the Standard & Poor's 500 Stock...

  • Page 14
    ...measure of the performance of real estate companies and because we believe that FFO is helpful to investors as an additional measure of the ...,651 Net cash provided by operating activities FFO to minority interest - common FFO to minority interest - preferred Funds from operations Less: allocations to...

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    ... Officer John E. Graul Senior Vice President John S. Baumann Senior Vice President and Chief Legal Officer David F. Doll Senior Vice President Candace N. Krol Senior Vice President, Human Resources Professional Services Transfer Agent Computershare Trust Company, N.A. P.O. Box 43078 Providence, RI...

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    P UBLIC S TORAGE 701 Western Avenue, Glendale, California 91201-2349 (818) 244-8080 • www.publicstorage.com (SKU 002CS-61164)