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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
F-16
an aggregate of $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. During 2012, we began to
consolidate a limited partnership owning three self-storage facilities (183,000 net rentable square feet) that we
gained control of, and recorded a gain of $1.3 million representing the differences between the aggregate fair
values of our existing investments and their book values. The fair values of our existing investments in 2012
was allocated to real estate facilities ($10.4 million), intangible assets ($0.9 million), and noncontrolling
interests ($8.2 million). 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 in our statement of income for the year ended December
31, 2012.
At December 31, 2014, the adjusted basis of real estate facilities for federal tax purposes was
approximately $8.9 billion (unaudited).
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,
2014
2013
2014
2013
2012
PSB
$
412,115
$
424,538
$
56,280
$
23,199
$
10,638
Shurgard Europe
394,842
424,095
29,900
32,694
33,223
Other Investments (A)
6,783
7,549
2,087
1,686
1,725
Total
$
813,740
$
856,182
$
88,267
$
57,579
$
45,586
(A) At December 31, 2014, the “Other Investments” include an average common equity ownership of
approximately 26% in various limited partnerships that collectively own 13 self-storage facilities
(14 at December 31, 2013).
During 2014, 2013 and 2012, we received cash distributions from our investments in the
Unconsolidated Real Estate Entities totaling $83.5 million, $45.9 million and $44.7 million, respectively. At
December 31, 2014, the cost of our investment in the Unconsolidated Real Estate Entities exceeds our pro rata
share of the underlying equity by approximately $68 million ($79 million at December 31, 2013). This
differential is being amortized as a reduction in equity in earnings of the Unconsolidated Real Estate Entities
based upon allocations to the underlying net assets. Such amortization was approximately $4.4 million during
2014 (none in 2013 or 2012), of which $2.5 million related to PSB’s disposition of assets.
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, 2014 and 2013, comprised of our ownership of 7,158,354 shares of
PSB’s common stock and 7,305,355 limited partnership units (“LP Units”) in an operating partnership
controlled by PSB. The LP Units are convertible at our option, subject to certain conditions, on a one-for-one