Public Storage 2009 Annual Report Download - page 68

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each respective period. The U.S. Dollar exchange rate relative to the Euro was approximately 1.433, 1.409, and
1.472 at December 31, 2009, 2008 and 2007, respectively.
Future foreign exchange gains or losses will be dependent primarily upon the movement of the Euro
relative to the U.S. Dollar, the amount owed from Shurgard Europe and our continued expectation with respect to
repaying the loan.
Discontinued Operations: During 2009, we discontinued operations in our truck rental and containerized
storage businesses. In addition, we disposed of one self-storage facility and expect to dispose of one other in
connection with condemnation proceedings. We reclassified all of the historical revenues and expenses of these
operations from revenues and expenses, into “discontinued operations.” Included in discontinued operations in 2009
are $3.5 million in truck disposal expenses, an $8.2 million impairment charge on intangible assets incurred in
connection with an eminent domain proceeding and $6.0 million of gains on the disposition of the self-storage
facilities.
Liquidity and Capital Resources
We have $763.8 million of cash on hand at December 31, 2009, and believe that these funds, together with
our internally generated net cash provided by our operating activities will continue to be sufficient to enable us to
meet our operating expenses, debt service requirements, capital improvements and distributions requirements to our
shareholders for the foreseeable future.
Operating as a REIT, our ability to retain cash flow for reinvestment is restricted. In order for us to
maintain our REIT status, a substantial portion of our operating cash flow must be distributed to our shareholders
(see “Requirement to Pay Distributions” below). However, despite the significant distribution requirements, we
have been able to retain a significant amount of our operating cash flow. The following table summarizes our ability
to fund capital improvements to maintain our facilities, distributions to the noncontrolling interests, capital
improvements to maintain our facilities, and distributions to our shareholders through the use of cash provided by
operating activities. The remaining cash flow generated is available to make both scheduled and optional principal
payments on debt and for reinvestment.
For the Year Ended December 31,
2009
2008
2007
(Amount in thousands)
Net cash provided by operating activities (a) ......................................................
$ 1,112,857
$ 1,076,971
$ 1,047,652
Capital improvements to maintain our facilities .................................................
(62,352)
(76,311)
(69,102)
Remaining operating cash flow available for distributions to equity holders .....
1,050,505
1,000,660
978,550
Distributions paid to redeemable noncontrolling interests ..................................
(1,290)
(1,335)
(1,092)
Distribution paid to permanent noncontrolling equity interests ..........................
(26,977)
(37,993)
(40,567)
Cash from operations allocable to Public Storage shareholders .........................
1,022,238
961,332
936,891
Distributions paid to Public Storage shareholders:
Preferred shareholders ...................................................................................
(232,431)
(239,721)
(236,757)
Equity Shares, Series A shareholders.............................................................
(20,524)
(21,199)
(21,424)
Common shareholders ($2.20 per share for 2009, $2.20 per share regular
dividend and $0.60 special dividend in 2008 and $2.00 per share for 2007) .
(370,404)
(470,823)
(338,689)
Cash from operations available for principal payments on debt and
reinvestment (b) ................................................................
..............................
$
398,879
$ 229,589
$
340,021
(a) Represents net cash provided by operating activities for each respective year as presented in our December 31, 2009
Consolidated Statements of Cash Flows.