Public Storage 2014 Annual Report Download - page 63

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capital commitments will continue to grow during 2015 as we continue to seek additional development and
acquisition opportunities. We may also redeem outstanding preferred securities in 2015 totaling
$270 million.
We believe we have a variety of possibilities to raise additional capital, including the issuance of
common or preferred securities, issuing debt, expanding the borrowing capacity of our bank credit facility,
or entering into joint venture arrangements to acquire or develop facilities.
At February 24, 2015, we have no outstanding borrowings on our bank credit facility.
Debt Service Requirements: As of December 31, 2014, our outstanding debt totaled
approximately $64.4 million. Approximate principal maturities of our outstanding debt are as follows
(amounts in thousands):
2015
$
17,822
2016
20,613
2017
9,263
2018
11,168
2019
1,217
Thereafter
4,281
$
64,364
The remaining maturities on our notes payable are nominal compared to our annual cash from
operations.
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 $79.8 million in, 2014. Capital expenditures do not include costs
relating to the development of new facilities or the expansion of net rentable square footage of existing
facilities. For 2015, we expect to incur approximately $80 million for capital expenditures and to 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 2014 totaled $1.2 billion, consisting of $232.6 million to preferred
shareholders and $967.9 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, 2014 to be approximately $254.2 million per year.
On February 19, 2015, our Board 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.