Public Storage 2011 Annual Report Download - page 105

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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
F-25
At December 31, 2011 and 2010, we had 3,292,565 and 3,435,287 of common shares reserved in
connection with our share-based incentive plans, respectively (see Note 10), and 231,978 shares reserved for the
conversion of Convertible Partnership Units, respectively.
Equity Shares, Series AAA
On August 31, 2010, we retiUHGDOORXWVWDQGLQJVKDUHVRI(TXLW\6KDUHV6HULHV$$$³(TXLW\6KDUHV
$$$´RXWVWDQGLQJ$W'HFHPEHUZHKDG(TXLW\6KDUHV$$$RXWVWDQGLQJZLWKDFDUU\LQJ
value of $100,000,000. During the six months ended June 30, 2010 and the year ended December 31, 2009, we
paid quarterly distributions to the holder of the Equity Shares, Series AAA of $0.5391 per share. For all periods
presented, the Equity Shares, Series AAA and related dividends are eliminated in consolidation as the shares
were held by one of our wholly-owned subsidiaries.
Dividends
The unaudited characterization of dividends for Federal income tax purposes is made based upon
earnings and profits of the Company, as defined by the Internal Revenue Code. Common share dividends
including amounts paid to our restricted share unitholders totaled $621.4 million ($3.65 per share),
$516.9 million ($3.05 per share) and $371.7 million ($2.20 per share), for the years ended December 31, 2011,
2010 and 2009, respectively. Equity Shares, Series A dividends totaled $5.1 million ($0.6125 per share) and
$20.5 million ($2.45 per share), for the years ended December 31, 2010 and 2009, respectively. Preferred share
dividends totaled $224.9 million, $232.7 million and $232.4 million for the years ended December 31, 2011,
2010 and 2009, respectively.
For the tax year ended December 31, 2011, distributions for the common shares and all the various
series of preferred shares were classified as follows:
2011 (unaudited)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Ordinary Income
99.94%
100.00%
100.00%
96.66%
Long-Term Capital Gain
0.06%
0.00%
0.00%
3.34%
Total
100.00%
100.00%
100.00%
100.00%
The ordinary income dividends distributed for the tax year ended December 31, 2011 do not constitute
qualified dividend income.
9. Related Party Transactions
The Hughes Family owns approximately 16.7% of our common shares outstanding at December 31,
2011.
The Hughes Family has ownership interests in, and operates, approximately 53 self-storage facilities in
&DQDGD ³36 &DQDGD´ XVLQJ WKH ³3XEOLF 6WRUDJH´ EUDQG QDPH SXUVXDQW WR D non-exclusive, royalty-free
trademark license agreement with the Company. We currently do not own any interests in these facilities nor
do we own any facilities in Canada. We have a right of first refusal to acquire the stock or assets of the
corporation that manages the 53 self-storage facilities in Canada, if the Hughes Family or the corporation agrees
to sell them. However, we have no interest in the operations of this corporation, we have no right to acquire this
stock or assets unless the Hughes Family decides to sell and we receive no benefit from the profits and increases
in value of the Canadian self-storage facilities.
We reinsure risks relating to loss of goods stored by tenants in the self-storage facilities in
Canada. During each of the years ended December 31, 2011, 2010 and 2009, we received $0.6 million in