Public Storage 2014 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 of the 2014 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, 2014
F-17
basis into PSB common stock. Based upon the closing price at December 31, 2014 ($79.54 per share of PSB
common stock), the shares and units we owned had a market value of approximately $1.2 billion.
During 2014, PSB recognized gains on the sale of real estate totaling $92.4 million. Our equity share
of such gains totaled $36.5 million, which is included in our equity in earnings of unconsolidated real estate
entities on our income statement for 2014. 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.
2014
2013
2012
(Amounts in thousands)
For the year ended December 31,
Total revenue
$
376,915
$
359,885
$
347,197
Costs of operations
(127,371)
(114,831)
(114,108)
Depreciation and amortization
(110,357)
(108,917)
(109,398)
General and administrative
(13,639)
(5,312)
(8,919)
Other items
(13,221)
(14,681)
(19,400)
Gain on sale of facilities
92,373
-
-
Net income
204,700
116,144
95,372
Allocations to preferred shareholders and
restricted share unitholders
(60,817)
(59,341)
(69,597)
Net income allocated to common shareholders
and LP Unitholders
$
143,883
$
56,803
$
25,775
2014
2013
(Amounts in thousands)
As of December 31,
Total assets (primarily real estate)
$
2,227,114
$
2,238,559
Debt
250,000
250,000
Other liabilities
68,905
73,919
Equity:
Preferred stock
995,000
995,000
Common equity and units
913,209
919,640
Investment in Shurgard Europe
For all periods presented, we had a 49% equity investment in Shurgard Europe and our joint venture
partner owns the remaining 51% interest. In addition, Shurgard Europe pays a license fee to us for the use of
the “Shurgard” trademark, and through July 2014, paid us interest on a shareholder loan which was repaid at
that time (see Note 5).