Public Storage 2014 Annual Report Download - page 64

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We are obligated to pay distributions to noncontrolling interests in our consolidated subsidiaries
based upon the cash provided by operating activities of the respective subsidiary. Such distributions are
estimated at approximately $7.0 million in 2015, with respect to such noncontrolling interests outstanding
at December 31, 2014.
Real Estate Investment Activities: Subsequent to December 31, 2014, we acquired four self-
storage facilities with an aggregate of 265,000 net rentable square feet for approximately $32 million in
cash. During 2015, we will continue to seek to acquire other self-storage facilities from third parties;
however, it is difficult to estimate the amount of third party acquisitions we will undertake.
As of December 31, 2014, we had development and expansion projects which will add
approximately 3.5 million net rentable square feet of storage space at a total cost of approximately
$411 million. A total of $105 million in costs were incurred through December 31, 2014 with respect to
these projects, with the remaining costs expected to be incurred primarily in 2015. Some of these projects
are subject to significant contingencies such as entitlement approval. We expect to continue to seek
additional development projects; however, the level of future development may be limited due to various
constraints such as difficulty in finding available sites for building that meet our risk-adjusted yield
expectations, as well as the challenges in obtaining building permits for self-storage activities in certain
municipalities.
Shurgard Europe: At December 31, 2014, Shurgard Europe has a bank term loan outstanding
with a balance of approximately €107.5 million maturing in January 2018, and €300.0 million of unsecured
senior notes maturing in equal amounts in 7, 10 and 12 years. In December 2014, Shurgard Europe
obtained a €40 million bank revolving credit facility which expires in January 2018. There were no
amounts outstanding on this facility at December 31, 2014.
On December 31, 2014, Shurgard Europe acquired five facilities located in Germany for a cash
purchase price of approximately €65.5 million. The cash purchase price was payable in the first quarter of
2015. Shurgard Europe will use borrowings on its bank revolving credit facility combined with cash on
hand to fund the purchase price.
Redemption of Preferred Securities: We have two series of preferred securities redeemable, at our
option, in 2015. Our 6.875% Series O Preferred Shares, with $145 million outstanding becomes
redeemable in April 2015, and our 6.5% Series P Preferred Shares, with $125 million outstanding, which
are redeemable in October 2015. The timing of redemption of these series of preferred shares will depend
upon many factors including whether we can issue capital at a lower cost of capital than the shares that
would be redeemed. None of our preferred securities are redeemable at the option of the holders.
Repurchases of Company’s Common Shares: Our Board has authorized management to
repurchase up to 35,000,000 of our common shares on the open market or in privately negotiated
transactions. During 2014, we did not repurchase any of our common shares. From the inception of the
repurchase program through February 24, 2015, we have repurchased a total of 23,721,916 common shares
at an aggregate cost of approximately $679.1 million. We have no current plans to repurchase additional
common shares; however, future levels of common share repurchases will be dependent upon our available
capital, investment alternatives and the trading price of our common shares.
Contractual Obligations
Our significant contractual obligations at December 31, 2014 and their impact on our cash flows
and liquidity are summarized below for the years ending December 31 (amounts in thousands):