Public Storage 2009 Annual Report Download - page 43

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25
share special dividend) for the quarter ended December 31. Total distributions on common shares for 2008
amounted to $470.8 million or $2.80 per share. Included in these amounts are $101.0 million or $0.60 per
common share with respect to a special cash dividend paid in December 2008. During 2007, we paid
distributions to our common shareholders of $0.50 per common share for each of the quarters ended
March 31, June 30, September 30 and December 31. Total distributions on common shares for 2007
amounted to $338.7 million or $2.00 per share.
Holders of common shares are entitled to receive distributions when and if declared by our Board
of Trustees out of any funds legally available for that purpose. In order to maintain our REIT status for
federal income tax purposes, we are generally required to pay dividends at least equal to 90% of our real
estate investment trust taxable income for the taxable year (for this purpose, certain dividends paid in the
subsequent year may be taken into account). We intend to continue to pay distributions sufficient to permit
us to maintain our REIT status.
For Federal income tax purposes, distributions to shareholders are treated as ordinary income,
capital gains, return of capital or a combination thereof. For 2009, the dividends paid on common shares
($2.20 per share), on all the various classes of preferred shares, and on our Equity Shares, Series A were
classified as follows:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Ordinary Income ................
100.0000%
100.0000%
98.5716%
100.0000%
Long-term Capital Gain ......
0.0000%
0.0000%
1.4284%
0.0000%
Total ...................................
100.0000%
100.0000%
100.0000%
100.0000%
For 2008, the dividends paid on common shares ($2.80 per share), on all the various classes of
preferred shares, and on our Equity Shares, Series A were classified as follows:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Ordinary Income ................
99.9668%
99.6512%
99.8319%
100.0000%
Long-term Capital Gain ......
0.0332%
0.3488%
0.1681%
0.0000%
Total ...................................
100.0000%
100.0000%
100.0000%
100.0000%
c. Equity Shares
The Company is authorized to issue 100,000,000 Equity Shares. Our declaration of trust provides
that the Equity Shares may be issued from time to time in one or more series and gives the Board of
Trustees broad authority to fix the dividend and distribution rights, conversion and voting rights,
redemption provisions and liquidation rights of each series of Equity Shares.
At December 31, 2009, we had 8,377,193 Depositary Shares outstanding, each representing
1/1,000 of an Equity Share, Series A. The Equity Shares, Series A rank on a parity with our common
shares and junior to the Senior Preferred Shares with respect to distributions and liquidation and has a
liquidation amount which cannot exceed $24.50 per share. Distributions with respect to each depositary
share shall be the lesser of: a) five times the per share dividend on the Common Shares or b) $2.45 per
annum. Except in order to preserve the Company’s Federal income tax status as a REIT, we may not
redeem the depositary shares before March 31, 2010. If the Company fails to preserve its Federal income
tax status as a REIT, each depositary share will be convertible into 0.956 of our common shares. The
depositary shares are otherwise not convertible into common shares. Holders of depositary shares vote as a
single class with our holders of common shares on shareholder matters, but the depositary shares have the
equivalent of one-tenth of a vote per depositary share. We have no obligation to pay distributions on the
depositary shares if no distributions are paid to common shareholders. During 2009, 2008 and 2007, we
paid quarterly distributions to the holders of the Equity Shares, Series A of $0.6125 per share for each of
the quarters ended March 31, June 30, September 30 and December 31. Pursuant to our option to redeem
the security after March 31, 2010, on April 15, 2010, we will be redeeming all of our outstanding shares of