Public Storage 2013 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 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-17
4. Investments in Unconsolidated Real Estate Entities
The following table sets forth our investments in, and equity earnings of, the Unconsolidated Real
Estate Entities (amounts in thousands):
Investments in Unconsolidated
Real Estate Entities at December 31, Equity in Earnings of Unconsolidated Real Estate Entities
for the Year Ended December 31,
2013 2012 2013 2012 2011
PSB $ 424,538 $ 316,078 $ 23,199 $ 10,638 $ 27,781
Shurgard Europe 424,095 411,107 32,694 33,223 29,152
Other Investments 7,549 8,138 1,686 1,725 1,771
Total $ 856,182 $ 735,323 $ 57,579 $ 45,586 $ 58,704
During 2013, 2012 and 2011, we received cash distributions from our investments in the
Unconsolidated Real Estate Entities totaling $45.9 million, $44.7 million and $53.5 million, respectively.
Investment in PSB
PSB is a REIT traded on the New York Stock Exchange. We have an approximate 42% common
equity interest in PSB as of December 31, 2013, comprised of our ownership of 7,158,354 shares of PSB’s
common stock and 7,305,355 limited partnership units in an operating partnership controlled by PSB (41% as of
December 31, 2012, comprised of our ownership of 5,801,606 shares of PSB’s common stock and 7,305,355
limited partnership units at December 31, 2012). The limited partnership units are convertible at our option,
subject to certain conditions, on a one-for-one basis into PSB common stock. Based upon the closing price at
December 31, 2013 ($76.42 per share of PSB common stock), the shares and units we owned had a market
value of approximately $1.1 billion.
During 2013, we purchased 406,748 shares of PSB common stock in open-market transactions at an
average cost of $73.15 per share. Subsequently, on November 7, 2013, PSB completed a public offering of
1,495,000 shares of its common stock for $79.25 per share. Concurrent with the public offering, we purchased
an additional 950,000 shares of PSB common stock from PSB at the same price per share as the public offering
for a total cost of $75.3 million. In connection with PSB’s common share issuance, we recognized a gain on
sale of real estate totaling $4.1 million as if we had sold a proportionate share of our investment in PSB.
The following table sets forth selected financial information of PSB. The amounts represent all of
PSB’s balances and not our pro-rata share.