Public Storage 2009 Annual Report Download - page 71

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53
$5.1 million, representing distributions through March 31, 2010. We will be redeeming these securities on April 15,
2010 and no further distributions will be paid for the period subsequent to March 31, 2010.
On February 26, 2010, our Board of Trustees declared a regular common dividend of $0.65 per common
share, representing an increase of $0.10 per share (an 18% increase) from the previous quarter’s distribution. Our
consistent, long-term dividend policy has been to only distribute our taxable income. Taxable income attributable to
our common shareholders has increased due to recent purchases of preferred securities and equity stock, as well as
reduced property depreciation, offset in part, by declines in operating income. Future changes in our dividend will
be impacted by these same factors, as well as property acquisitions. Future distributions with respect to the common
shares will continue to be determined based upon our REIT distribution requirements after taking into consideration
distributions to the preferred shareholders and will be funded with operating cash flow.
We are also obligated to pay distributions to non-controlling interests in our consolidated subsidiaries.
During 2009, we paid distributions totaling $9.5 million with respect to preferred partnership units. We expect our
annual distribution requirement based upon preferred partnership units outstanding at December 31, 2009, to be
approximately $7.3 million on a go forward basis. In addition, we are required to pay distributions to other non-
controlling interests in our consolidated subsidiaries based upon the operating cash flows of the respective
subsidiary less any required reserves for capital expenditures or debt repayment. Such non-controlling interests
received a total of $18,812,000 in 2009, $17,716,000 in 2008 and $20,047,000 in 2007, which represents our
expectations with respect to future distribution levels.
Acquisition and Development of Facilities: During 2010, we will continue to seek to acquire self-storage
facilities from third parties; however, it is difficult to estimate the amount of third party acquisitions we will
undertake. We have a minimal development pipeline at December 31, 2009 and have no current plan to expand our
development activities. We plan on financing these activities with available cash on-hand, the assumption of
existing debt, borrowings on our line of credit, or the net proceeds from the issuance of common or preferred
securities.
European Activities: We have a 49% interest in Shurgard Europe and our institutional partner owns the
remaining 51% interest. As of December 31, 2009, Shurgard Europe owed us €391.9 million ($561.7 million at
December 31, 2009) pursuant to a loan agreement. Effective, October 31, 2009, the terms of the loan were modified
to increase the interest rate from 7.5% to 9.0% per annum and the maturity date was extended from March 31, 2010
to March 31, 2013. All other material terms and covenants remain the same. The loan is unsecured and can be
prepaid at anytime without penalty.
Shurgard Europe has a 20% interest in two joint ventures (First Shurgard and Second Shurgard). We are
committed to provide additional financing to Shurgard Europe to facilitate the acquisition of its partner’s 80%
interest in each of these two joint ventures.
If Shurgard Europe acquires its partner’s 80% interest in either First Shurgard and Second Shurgard and is
unable to obtain third-party financing to repay the existing loans of the joint ventures, we have agreed to provide
additional loans to Shurgard Europe, under the same terms as the our €391.9 million loan, for up to €185 million
($265.2 million as of December 31, 2009). This commitment expires on March 31, 2010 and was originally for
€305 million, but was reduced as the result of refinancing one of the joint venture loans. Shurgard Europe has no
obligation to acquire these interests, and the acquisition of these interests is contingent on a number of items,
including whether we assent to the acquisition.
The two joint ventures collectively had approximately €224 million ($321 million) of outstanding debt
payable to third parties at December 31, 2009, which is non-recourse to Shurgard Europe. One of the joint venture
loans, totaling €107 million ($153 million), is due May 2011 and the other joint venture loan, totaling €117 million
($168 million), is due in July 2010. Both joint venture loans are secured by the joint ventures’ respective facilities,
and are not guaranteed by Public Storage, Shurgard Europe or any third party.