Public Storage 2009 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2009 Public Storage annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

52
Debt Service Requirements: At December 31, 2009, outstanding debt totaled approximately
$518.9 million. Approximate principal maturities are as follows (amounts in thousands):
Unsecured debt
Secured debt
Total
2010
$ 1,673
$ 11,037
$ 12,710
2011
103,533
27,819
131,352
2012
-
55,575
55,575
2013
186,460
64,961
251,421
2014
-
25,400
25,400
Thereafter
-
42,431
42,431
$ 291,666
$ 227,223
$ 518,889
Our current intention is to repay the debt at maturity and not seek to refinance debt maturities with
additional debt. Alternatively, we may prepay debt and finance such prepayments with cash on-hand or proceeds
from the issuance of preferred or common securities.
On February 12, 2009, we acquired approximately $110 million face amount of our existing senior
unsecured debt pursuant to a tender offer. The amount paid in the tender offer, approximately $110 million, was
substantially less than what would have been paid if we were to repay this debt early subject to the prepayment
premiums under the related debt agreements.
Our portfolio of real estate facilities is substantially unencumbered. At December 31, 2009, we have 1,902
self-storage facilities with an aggregate net book value of approximately $7.0 billion that are unencumbered.
Capital Improvement Requirements: During 2010, we expect to incur approximately $80 million for
capital improvements. Capital improvements include major repairs or replacements to our facilities, which keep the
facilities in good operating condition and maintain their visual appeal to the customer. Capital improvements do not
include costs relating to the development or expansion of facilities that add additional net rentable square footage to
our portfolio. During the year ended December 31, 2009, we incurred capital improvements of approximately
$62.4 million.
Requirement to Pay Distributions: We have operated, and intend to continue to operate, in such a manner
as to qualify as a REIT under the Code, but no assurance can be given that we will at all times so qualify. To the
extent that we continue to qualify as a REIT, we will not be taxed, with certain limited exceptions, on the REIT
taxable income that is distributed to our shareholders, provided that at least 90% of our taxable income is so
distributed. We believe we have satisfied the REIT distribution requirement since 1981. Although we have not
finalized our 2009 taxable income, we believe that the aggregate distributions paid in 2009 to our shareholders
enable us to continue to meet our REIT distribution requirements.
Aggregate distributions paid during 2009 totaled $624.7 million, consisting of the following (amounts in
thousands:
Distributions paid in 2009
Cumulative preferred shareholders
$ 232,431
Equity Shares, Series A shareholders
20,524
Common shareholders and restricted share unitholders
371,710
Total REIT qualifying distributions
$ 624,665
For 2010, we estimate the annual distribution requirements with respect to our (i) cumulative preferred
shares outstanding at December 31, 2009, to be approximately $232.4 million, assuming no additional preferred
share issuances or redemptions during 2010, and (ii) Equity Shares, Series A shares to be approximately