Public Storage 2010 Annual Report Download - page 66

52
Unsecured debt Secured debt
Total
2011 $ 103,532 $ 30,243
$ 133,775
2012 - 70,761
70,761
2013 186,460 79,123
265,583
2014 - 49,111
49,111
2015 - 29,133
29,133
Thereafter - 20,054
20,054
$ 289,992 $ 278,425
$ 568,417
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.
Our portfolio of real estate facilities is substantially unencumbered. At December 31, 2010, we have 1,932
self-storage facilities with an aggregate net book value of approximately $6.9 billion that are unencumbered.
Capital Improvement Requirements: 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. We incurred capital improvements totaling $77.5 million during 2010.
During 2011, we expect to incur approximately $81 million for capital improvements and expect to fund such
improvements with operating cash flow.
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.
Aggregate distributions paid during 2010 totaled $754.8 million, consisting of the following (amounts in
thousands):
Cumulative preferred shareholders $ 232,745
Equity Shares, Series A shareholders 5,131
Common shareholders and restricted share unitholders 516,894
Total REIT qualifying distributions $ 754,770
We estimate the distribution requirements with respect to our cumulative preferred shares outstanding at
December 31, 2010 to be approximately $230 million per year, assuming no additional preferred share issuances or
redemptions during 2011. We redeemed the Equity Shares, Series A on April 15, 2010 and no further distributions
will be paid after March 31, 2010.
On February 25, 2011, our Board of Trustees declared a regular common dividend of $0.80 per common
share. Our consistent, long-term dividend policy has been to distribute only our taxable income. 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 2010, we paid distributions totaling $5.9 million with respect to preferred partnership units. During October
2010, we repurchased all of our remaining preferred partnership units which had an annual distribution requirement
of $7.3 million, and no further distributions will be paid past the repurchase date. In addition, we are required to pay
distributions to other noncontrolling interests in our consolidated subsidiaries based upon the operating cash flows of