Public Storage 2008 Annual Report Download

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PUBLIC STORAGE
2008
ANNUAL
REPORT

Table of contents

  • Page 1
    P UBLIC S TORAGE 2 0 0 8 A R N N UA L E P O R T

  • Page 2
    ...NC 69 SC 69 SC 40 40 MA 19 2 RI MA 19 CT 2 RI 14 CT 14 NJ 56 NJ 56 5 DE ...2008) Number of Properties(1) Net Rentable Square Feet Location Number of Properties(1) Net Rentable Square Feet UNITED STATES Alabama Arizona California...Storage and properties combining self-storage and commercial space.

  • Page 3
    ..., total debt and shareholders' equity in 2006, is due to our acquisition of Shurgard Storage Centers in August 2006. The significant decrease in our revenues, cost of operations, depreciation and amortization, and interest expense in 2008, and the significant decrease in total assets, total debt and...

  • Page 4
    ... partners. Our long-term goal is to take Shurgard Europe public and maintain our equity interest. Just as PS Business Parks constitutes our investment in U.S. office and industrial properties, Shurgard Europe is our investment in European self-storage. Our loan is not a long-term investment, has...

  • Page 5
    ... losses, minority interest in income, cumulative effect adjustments and discontinued operations. (2) Reflects pro rata share of Shurgard Europe's operations; a 51% interest was sold in March 2008. (3) Reflects pro rata share of PS Business Parks and wholly owned Public Storage commercial properties.

  • Page 6
    ... sales and service and local competition. Gross profit margin reflects how capable we are at generating more revenue while controlling expenses. Both REVPAF and gross profit margin increased across all portfolios last year, resulting in higher net operating income. REVPAF (Per sq. ft.) 2008 2007...

  • Page 7
    ... profit margin Weighted average occupancy (1) Reflects pro rata share of PS Business Parks and wholly owned Public Storage properties. $13.82 68.8% 92.4% $13.47 68.1% 93.3% Commercial Property Net Operating Income Amounts in millions 2008 2007 PS Business Parks(1) Public Storage Net operating...

  • Page 8
    ...context. In the first quarter of 2007, by any measure, the real estate industry reached a zenith. Our Company's stock traded above $110 per share, while the newspapers headlined Blackstone Group's $30 billion acquisition of Equity Office Properties (the largest REIT in America at the time) at record...

  • Page 9
    ... the capital have driven share prices down 70%-90% for some companies. We have not escaped collateral damage. We issued our last series of preferred stock in July 2007 at a 7% coupon. Today our various preferred issuances trade at 9%-11% yields. PS Business Parks' preferreds trade at 10%-12% yields...

  • Page 10
    ... our preferred stock at significant discounts to issue price and, unlike repurchasing debt at a discount, without generating taxable income. We have operated for the last 16 years (since 1992) as if the capital markets might close the next day, as it did for all real estate companies during...

  • Page 11
    ... development. They have created significant value for Public Storage shareholders since we acquired Shurgard and they have positioned the business well for today's environment. Executive Compensation We paid over $30 million in executive compensation in 2008-a record. This is big time money for...

  • Page 12
    ..., i.e., they are cheap but there are only one or two puffs remaining. Many real estate companies will need to be recapitalized. In the meantime, these headwinds will continue to weigh on share prices, including ours. Ronald L. Havner, Jr. President and Chief Executive Officer February 28, 2009

  • Page 13
    .../07 12/31/08 Public Storage S&P 500 Index NAREIT ...Company's cumulative total shareholder return on its Common Stock for the five-year period ended December 31, 2008 to the cumulative total return of the Standard & Poor's 500 Stock Index ("S&P 500 Index") and the National Association of Real Estate...

  • Page 14
    ...sale of real estate investments and assets (336,545) (6,883) (5,594) Minority interest share of income 38,696 29,543 31,883 Net cash provided by operating activities FFO to minority interest - common FFO to minority interest - preferred Funds from operations Less: allocations to preferred and equity...

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    ... Vice President and Chief Legal Officer Candace N. Krol Senior Vice President, Human Resources Professional Services Transfer Agent Computershare Trust Company, N.A. P.O. Box 43078 Providence, RI 02940-3078 (781) 575-3120 www.computershare.com Independent Registered Public Accounting Firm Ernst...

  • Page 128
    P UBLIC S TORAGE 701 Western Avenue, Glendale, California 91201-2349 (818) 244-8080 • www.publicstorage.com (SKU 002CS-18235)