Public Storage 2013 Annual Report Download - page 59

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49
We believe we have a variety of possibilities to bridge the gap between our capital resources and
commitments which may include raising capital through the issuance of common or preferred securities,
issuing debt, expanding the borrowing capacity of our credit facility, or entering into joint venture
arrangements to acquire or develop facilities.
At February 25, 2014, we have no outstanding borrowings on our line of credit and outstanding
borrowings of $600 million on our term loan.
Debt Service Requirements: As of December 31, 2013, our outstanding debt totaled
approximately $839.1 million. Approximate principal maturities of our outstanding debt are as follows
(amounts in thousands):
Term Loan and
Line of Credit Secured Debt Total
2014 $ 700,000 $ 26,206 $ 726,206
2015 - 30,842 30,842
2016 - 15,920
15,920
2017 50,100
1,343
51,443
2018 - 11,077
11,077
Thereafter - 3,565
3,565
$ 750,100 $ 88,953
$ 839,053
The remaining maturities on our secured debt are nominal compared to our annual cash from
operations. We intend to repay the secure debt at maturity and not seek to refinance it with additional debt.
Virtually all of the book value of our real estate facilities are unencumbered at December 31,
2013.
Capital Expenditure Requirements: Capital expenditures include major repairs or replacements to
elements of our facilities, which keep the facilities in good operating condition and maintain their visual
appeal to the customer, which totaled $71.3 million in 2013. Capital expenditures do not include costs
relating to the development of new facilities or the expansion of net rentable square footage of existing
facilities. During 2014, we expect to incur approximately $70 million for capital expenditures and fund
such amounts with cash provided by operating activities. For the last four years, such capital expenditures
have ranged between approximately $0.55 and $0.60 per net rentable square foot per year.
Requirement to Pay Distributions: For all periods presented herein, we have elected to be treated
as a REIT, as defined in the Internal Revenue Code. As a REIT, we do not incur federal income tax on our
REIT taxable income (generally, net rents and gains from real property, dividends, and interest) that is fully
distributed each year (for this purpose, certain distributions paid in a subsequent year may be considered),
and if we meet certain organizational and operational rules. We believe we have met these requirements in
all periods presented herein, and we expect to continue to elect and qualify as a REIT.
Distributions paid during 2013 totaled $1.1 billion, consisting of $204.3 million to preferred
shareholders and $887.1 million to common shareholders and restricted share unitholders. All of these
distributions were REIT qualifying distributions.
We estimate the annual distribution requirements with respect to our Preferred Shares outstanding
at December 31, 2013 to be approximately $207.6 million per year.
On February 20, 2014, our Board of Trustees declared a regular common quarterly dividend of
$1.40 per common share. Our consistent, long-term dividend policy has been to distribute only our taxable
income. Future quarterly 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 cash provided by operating activities.