Public Storage 2013 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2013 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 116

  • 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

PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
F-16
For the Year Ended December 31,
2013
2012
(Amounts in thousands, except per share data)
(Unaudited)
Revenues $ 2,053,143 $ 1,926,195
N
et income $ 1,079,066 $ 902,108
Income per share:
Basic $ 5.03 $ 3.56
Diluted $ 5.00 $ 3.54
During 2012, we acquired 24 operating self-storage facilities from third parties (1,908,000 net rentable
square feet of storage space and unfinished space that we converted to 209,000 net rentable square feet of
storage space in 2013 for $20.3 million in additional development cost) for $225.5 million in cash, with
$187.9 million allocated to real estate facilities, $9.1 million allocated to intangible assets and $28.5 million
allocated to construction in process with respect to the unfinished space. In addition, we consolidated a limited
partnership that we had previously accounted for using the equity method (see Note 4). The three self-storage
facilities (183,000 net rentable square feet) owned by this entity, having an aggregate fair market value of
$10.4 million, have been added to our operating facilities. We also completed various expansion activities to
our existing facilities for an aggregate cost of approximately $7.2 million.
During 2012, we also disposed of four operating self-storage facilities and portions of other facilities in
connection with eminent domain proceedings. We received aggregate proceeds totaling $20.0 million and
recorded gains totaling of $12.3 million, of which $12.1 million was included in discontinued operations and
$0.2 million was included in gain on real estate sales and debt retirement in our statement of income for the year
ended December 31, 2012.
During 2011, we acquired eleven operating self-storage facilities from third parties (896,000 net
rentable square feet) and the leasehold interest in the land of one of our existing self-storage facilities for an
aggregate cost of $91.6 million, consisting of $77.2 million of cash, assumed mortgage debt with a fair value of
$9.7 million and the elimination of the $4.7 million book value of an intangible asset related to the acquired
leasehold interest. The aggregate cost was allocated $85.9 million to real estate facilities and $5.7 million to
intangible assets. In addition, we consolidated two limited partnerships that we had previously accounted for
using the equity method (see Note 4). The two self-storage facilities (143,000 net rentable square feet) owned
by these limited partnerships have an aggregate fair market value of $19.4 million and have been added to our
operating facilities. We also completed various expansion activities to our existing facilities for an aggregate
cost of approximately $21.8 million.
During 2011, we disposed of two operating self-storage facilities and portions of other facilities in
connection with eminent domain proceedings. We received aggregate proceeds totaling $13.4 million and
recorded an aggregate gain of $8.5 million, of which $2.7 million was included in discontinued operations and
$5.8 million was included in gain on real estate sales and debt retirement on our statement of income for the
year ended December 31, 2011. Our facilities incurred hurricane damage in 2011, resulting in a $0.3 million
impairment charge.
At December 31, 2013, the adjusted basis of real estate facilities for federal tax purposes was
approximately $8.5 billion (unaudited).