Public Storage 2015 Annual Report Download
Download and view the complete annual report
Please find the complete 2015 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.Public Storage
®
2015
Annual
Report
Table of contents
-
Page 1
® Public Storage 2 0 1 5 Annual Report -
Page 2
...New York North Carolina Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina 22 44 421 66 15 5 274 107 11 126 31 21 7 11 61 25 43 47 1 38 1 27 2 57 65 85 31 8 39 29 3 53 Public Storage (cont.) 27 270 7 90 92 15 2,277 Shurgard Europe Belgium Denmark France Germany Netherlands Sweden United... -
Page 3
...2015 2014 2013 2012 2011 (Amounts in thousands, except share and per share...Public Storage shareholders Per Common Share: Distributions Net income - diluted Weighted average common shares...,689 - 1,317,689 (6,445) 613,324 437,114 71,459 - 1,121,897 1,055,399 17,638 (6,781) 88,267 (7,047) 2,479 1,149... -
Page 4
... 393 154 $ 2,786 $ 1,850 183 374 141 2,548 $ $ Net Operating Income (NOI)1 2015 2014 2013 U.S. self-storage European self-storage Commercial properties Ancillary businesses Total Public Storage's share $ 1,649 121 264 121 $ 2,155 $ 1,936 $ 1,483 109 262 108 $ 1,962 $ 1,750 $ 1,326 105 250... -
Page 5
... and South Carolina. Financing and dividends of 2.175 annualized rate of $6.80 per share of $2.40 per share coupon of 6.7%. ฀...share on a long-term, sustainable basis. I believe this is the best metric to calculate our intrinsic business value and is also key to measuring in 2014 and 2015... -
Page 6
... are located. Public Storage's Market Share Estimates by selected Metropolitan Statistical Areas (MSA) Percentage of 2015 NOI Next largest competitor's share Annual population growth 2010-2015 MSA Market share5 Los Angeles Miami New York San Francisco Washington DC Seattle Dallas-Ft.Worth... -
Page 7
... 1,000 for 2016), which will eventually impact our pricing power. However, we have the best brand, dominant market share and an incredibly talented marketing and pricing team led by John Reyes and supported by Richard Craig, David Collins and John Kim. As I have often said, "The big dog Income from... -
Page 8
... of operating results on a constant exchange rate basis is as follows. Net Operating Income (Amounts in millions, except sq. ft. occupancy and REVPAF) 2015 2014 2013 Same store Acquired/developed properties Total Public Storage's share Total assets (before depreciation reserves) Same store... -
Page 9
... from its well-located portfolio on the West Coast, Texas, Washington DC and Florida markets. Net Operating Income (Amounts in millions) ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ 2015 2014 2013 Public Storage's owned commercial properties Total Public Storage's share Total assets... -
Page 10
Net Operating Income (Amounts in millions) 2015 2014 2013 Third party management Merchandise Tenant reinsurance European ancillary businesses Total Public Storage's share Total assets $ $ $ $ 2 13 84 22 121 110 10 $ $ $ $ 2 12 73 21 108 97 10 $ $ $ $ 2 12 68 20 102 92 10 We continue to... -
Page 11
... on Public Storage have averaged 4.9. Google Reviews Cumulative number of reviews Average Rating 5 Cumulative number of reviews 250,000 200,000 150,000 4 3 100,000 50,000 0 2012 2013 2014 2015 2 1 Our operations team deserves a lot of credit. They are supported by a solid human resources team... -
Page 12
...our "tool kit," giving us greater ï¬nancial ï¬,exibility attractive rate and term, the issuance has the additional benefit of being denominated... Conclusion We are well positioned going into 2016. All of our businesses should continue to improve and take advantage of the current favorable operating... -
Page 13
.../10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 Public Storage S&P 500 Index NAREIT Equity Index $ 100.00 $ 100.00 $ 100.00 $ ...Shares for the ï¬ve-year period ended December 31, 2015 to the cumulative total return of the Standard & Poor's 500 Stock Index ("S&P 500 Index") and the National... -
Page 14
... represents Core FFO, less per share capital expenditures and non-cash stock based compensation expense. Core FFO and Free Cash Flow are not substitutes for EPS and may not be comparable with other REITs due to calculation differences; however, we believe they are helpful measures for investors and... -
Page 15
...) PUBLIC STORAGE Maryland State or other jurisdiction of incorporation or organization 95-3551121 I.R.S. Employer Identification Number 701 Western Avenue, Glendale, California 91201-2349 Address of principal executive officesZip Code Registrant's telephone number... -
Page 16
...UHJLVWUDQWLVD ZHOONQRZQ VHDVRQHGLVVXHUDVGHILQHGLQ 5XOHRIWKH6HFXULWLHV $FW ;@ 1R>@ ,QGLFDWHE\FKHFNPDUN... VXEPLWWHG DQG SRVWHG SXUVXDQW WR 5XOH RI 5HJXODWLRQ 67 †RIWKLVFKDSWHUGXULQJWKHSUHFHGLQJPRQWKVRUIRUVXFKVKRUWHUSHULRG... -
Page 17
...WKHYRWLQJDQGQRQYRWLQJFRPPRQVKDUHVKHOGE\QRQDIILOLDWHVRIWKH5HJLVWUDQWDV RI-XQH RPPRQ6KDUHV3DU9DOXH3HU6KDUH FRPSXWHGRQWKHEDVLVRISHUVKDUHZKLFK ZDV WKH UHSRUWHG FORVLQJ VDOH SULFH RI WKH &RPSDQ\ V &RPPRQ 6KDUHV RQ WKH 1HZ -
Page 18
PART I Business ITEM 1. Forward Looking Statements 7KLV$QQXDO5HSRUWRQ)RUP.FRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVZLWKLQWKHPHDQLQJRIWKH 3ULYDWH6HFXULWLHV/LWLJDWLRQ5HIRUP$FWRI$OOVWDWHPHQWVLQWKLVGRFXPHQWRWKHUWKDQVWDWHPHQWVRI KLVWRULFDO IDFW DUH IRUZDUG... -
Page 19
...LQWKLV UHSRUW RU ZKLFK PDQDJHPHQW PD\ PDNH RUDOO\ RU LQ ZULWLQJ IURP WLPH WR WLPH DV SUHGLFWLRQV RI IXWXUH HYHQWVQRUJXDUDQWHHVRIIXWXUHSHUIRUPDQFH General 3XEOLF6WRUDJHUHIHUUHGWRKHUHLQDV³WKH&RPSDQ\´³ZH´³XV´RU³RXU´D0DU\ODQG5(,7ZDV RUJDQL]HG... -
Page 20
...Business Attributes :H EHOLHYH WKDW ZH SRVVHVV VHYHUDO SULPDU\ EXVLQHVV DWWULEXWHV WKDW SHUPLW XV WR FRPSHWH HIIHFWLYHO\ Centralized information... Desktop and Mobile Websites:7KHRQOLQHPDUNHWLQJFKDQQHOFRQWLQXHVWRJURZLQ SURPLQHQFH ZLWK DSSUR[LPDWHO\ RI RXU PRYHLQV... -
Page 21
... WKH XVH RI VHDUFK HQJLQHV DQG ZH UHJXODUO\ XSGDWH RXU ZHEVLWHVWRHQKDQFHWKHLUSURGXFWLYLW\ x Our Call Center: 2XUFDOOFHQWHULV... Marketing and advertising efficiencies 2XU PDMRUPDUNHW FRQFHQWUDWLRQ UHODWLYH WR WKH IUDJPHQWHGRZQHUVKLSDQGRSHUDWLRQRIWKHUHVWRIWKH... -
Page 22
...ODERUDQGGHVLJQHOHPHQWV Participate in the growth of PS Business Parks, Inc.: 2XU LQYHVWPHQW LQ 36% SURYLGHV GLYHUVLILFDWLRQLQWRDQRWKHUDVVHWW\SH36%LVDVWDQGDORQHSXEOLFFRPSDQ\WUDGHGRQWKH1 -
Page 23
... ZH H[SHFW WR UHPDLQ FRQVHUYDWLYHO\ FDSLWDOL]HG DQG QRW VXEMHFW RXUVHOYHV WR VLJQLILFDQW UHILQDQFLQJ ULVN IURP WKH LVVXDQFH RI GHEW Financing with unsecured debt: :H KDYH EURDG SRZHUV WR LVVXH GHEW WR IXQG RXU EXVLQHVV 7KHVHSRZHUVDUHVXEMHFWWRDOLPLWDWLRQRQ... -
Page 24
...GHSHQGHQW XSRQ RXU ILQDQFLQJ QHHGV DQG FDSLWDO PDUNHW FRQGLWLRQV DW WKH WLPH LQFOXGLQJ WKH PDUNHW SULFHV RI RXU HTXLW\VHFXULWLHV Joint Venture financing: :H KDYH XVHG MRLQW YHQWXUHV ZLWK LQVWLWXWLRQDO LQYHVWRUV DQG ZH PD\ IRUPDGGLWLRQDOMRLQWYHQWXUHVLQWKHIXWXUH... -
Page 25
... WR RXU 'HFHPEHU ILQDQFLDO VWDWHPHQWV IRU IXUWKHU GLVFORVXUHUHJDUGLQJWKHDVVHWVOLDELOLWLHVDQGRSHUDWLQJUHVXOWVRI36%DQG6KXUJDUG(XURSH Canadian self-storage facilities owned by Former Chairman and Member of Board of Trustees $W 'HFHPEHU % :D\QH +XJKHV... -
Page 26
... LQFUHDVHG SURSHUW\ WD[ IROORZLQJ UHDVVHVVPHQW RI D QHZO\DFTXLUHG SURSHUW\ DV ZHOO DV WKH JHQHUDO ULVNV RI UHDO HVWDWH LQYHVWPHQW FRXOG MHRSDUGL]H UHDOL]DWLRQ RI WKH DQWLFLSDWHG HDUQLQJV IURP DQ DFTXLVLWLRQ Development of self-storage facilities can subject us to... -
Page 27
...storage operators and from other storage alternatives2XU VHOIVWRUDJH IDFLOLWLHV JHQHUDWH PRVW RI RXU UHYHQXH DQG HDUQLQJV &RPSHWLWLRQ LQ WKH ORFDO PDUNHW DUHDV LQ ZKLFK PDQ\ RI...incur liability from tenant and employment-related claims. )URP WLPH... our business, financial... -
Page 28
...6WRUDJHGXHWRWKHMRLQWYHQWXUHVWUXFWXUH Risks related to Shurgard Europe's Debt: 6KXUJDUG (XURSH KDV D WRWDO RI ¼ PLOOLRQ LQ XQVHFXUHGGHEWRXWVWDQGLQJDW'HFHPEHURIZKLFK¼PLOOLRQLVGXHDQQXDOO\LQ HDFKRIDQG¼PLOOLRQLVGXHLQ... -
Page 29
...DQG WR WDNHRUUHIUDLQIURPWDNLQJRWKHUDFWLRQVWKDWFRXOGKDYHWKHHIIHFWRIGHOD\LQJGHWHUULQJ RUSUHYHQWLQJDWUDQVDFWLRQRUDFKDQJHLQFRQWURO x x If ... ZHZRXOGEHWD[HGDWWKHUHJXODUIHGHUDOFRUSRUDWHUDWHVRQDOORIRXUWD[DEOHLQFRPHDQGZHDOVRFRXOGEH VXEMHFWWRSHQDOWLHVDQG... -
Page 30
... of such networks, systems or technology could adversely impact our business, customer, and employee relationships. :HDUHKHDYLO\GHSHQGHQW XSRQDXWRPDWHGLQIRUPDWLRQWHFKQRORJ\DQG,QWHUQHWFRPPHUFH ZLWK PRUHWKDQKDOIRIRXUQHZFXVWRPHUVFRPLQJIURPWKHWHOHSKRQHRURYHUWKH,QWHUQHW... -
Page 31
...WRLQGLYLGXDOVDIIHFWHGE\WKHQRQFRPSOLDQFH)DLOXUHWRFRPSO\ZLWK WKHVHUHTXLUHPHQWVFRXOGDOVRDIIHFWWKHPDUNHWDELOLW\RIRXUUHDOHVWDWHIDFLOLWLHV Our tenant reinsurance business is subject to governmental regulation which could reduce our profitability or limit our growth. :H KROG... -
Page 32
... 7HQQHVVHH .DQVDV :LVFRQVLQ 2WKHUVWDWHVVWDWHV 7RWDO86 Europe (b): 1HWKHUODQGV )UDQFH 6ZHGHQ %HOJLXP 8QLWHG.LQJGRP *HUPDQ\ 'HQPDUN 7RWDO(XURSH *UDQG7RWDO At December 31, 2015 1XPEHURI6WRUDJH 1HW5HQWDEOH6TXDUH )DFLOLWLHVD )HHWLQWKRXVDQGV... -
Page 33
...RXUWRWDODVVHWVJURVV UHYHQXHVRUQHWLQFRPH Description of Self-Storage Facilities: 6HOIVWRUDJHIDFLOLWLHVZKLFKFRPSULVHWKHPDMRULW\RIRXU LQYHVWPHQWVRIIHUDFFHVVLEOHVWRUDJHVSDFHIRUSHUVRQDODQGEXVLQHVVXVHDWDUHODWLYHO\ORZFRVW$XVHU UHQWVDIXOO\HQFORVHGVSDFHVHFXULQJ... -
Page 34
...]DWLRQ RXU 86 VHOIVWRUDJH IDFLOLWLHV KDYH JHQHUDOO\ VKRZQ D KLJK GHJUHH RI VWDELOLW\ LQ JHQHUDWLQJFDVKIORZV Description of Commercial Properties:HKDYHDQLQWHUHVWLQ36%ZKLFKDVRI'HFHPEHU RZQVDQGRSHUDWHVDSSUR[LPDWHO\PLOOLRQUHQWDEOHVTXDUHIHHW... -
Page 35
PART II ITEM 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities D 0DUNHW,QIRUPDWLRQRIWKH5HJLVWUDQW¶V&RPPRQ(TXLW\ 2XU &RPPRQ 6KDUHV RI EHQHILFLDO LQWHUHVW WKH ³&RPPRQ 6KDUHV´ 1 -
Page 36
...%RDUGKDVEURDGDXWKRULW\WRIL[WKHGLYLGHQGDQGGLVWULEXWLRQULJKWVFRQYHUVLRQDQG YRWLQJULJKWVUHGHPSWLRQSURYLVLRQVDQGOLTXLGDWLRQULJKWVRIHDFKVHULHVRIHTXLW\VKDUHV:HKDG QRHTXLW\VKDUHVRXWVWDQGLQJIRUDQ\SHULRGLQWKH\HDUVHQGHG'HFHPEHUDQG G &RPPRQ6KDUH... -
Page 37
... ,QWHUHVWDQGRWKHULQFRPH ,QWHUHVWH[SHQVH (TXLW\LQHDUQLQJVRIXQFRQVROLGDWHGUHDO HVWDWHHQWLWLHV )RUHLJQFXUUHQF\H[FKDQJHJDLQORVV *...WR3XEOLF6WRUDJH VKDUHKROGHUV Per Common Share: 'LVWULEXWLRQV 1HWLQFRPH±%DVLF 1HWLQFRPH±'LOXWHG :... -
Page 38
... WR TXDOLI\DVD5(,7DQGIRUZKLFKDSSOLFDEOHVWDWXWRU\UHOLHISURYLVLRQVGLGQRWDSSO\ZHZRXOGEHWD[HGDW WKHUHJXODUFRUSRUDWHUDWHVRQDOORIRXUWD[DEOHLQFRPHIRUDWOHDVWWKDW\HDUDQGWKHHQVXLQJIRXU\HDUVZH FRXOG EH VXEMHFW WR SHQDOWLHV DQG LQWHUHVW DQG RXU QHW... -
Page 39
...DVZHOODVVHHNLQJDGGLWLRQDOLQYHVWPHQWVLQVHOIVWRUDJHIDFLOLWLHV 0RVWRIRXUIDFLOLWLHVFRPSHWHZLWKRWKHUZHOOPDQDJHGDQGZHOOORFDWHGFRPSHWLWRUVDQG...ZLOOJURZLQDQGEH\RQG GXHWRWKHLQFUHDVLQJOHYHORIGHYHORSPHQWDQGXQVWDELOL]HGSURSHUWLHVLQRXUSRUWIROLR :HDOVRKDYHHTXLW... -
Page 40
...DFTXLVLWLRQRSSRUWXQLWLHV 6HH Liquidity and Capital Resources IRU IXUWKHU LQIRUPDWLRQ UHJDUGLQJ RXU FDSLWDO UHTXLUHPHQWV DQGDQWLFLSDWHGVRXUFHVRIFDSLWDOWRIXQGVXFKUHTXLUHPHQWV Results of Operations Operating results for 2015 as compared to 2014 )RU WKH \HDU HQGHG 'HFHPEHU... -
Page 41
... GLOXWHG HDUQLQJV SHU VKDUH WR ))2 SHU VKDUH DQG VHW IRUWK WKH FRPSXWDWLRQRI))2SHUVKDUH Reconciliation of Diluted Earnings per Share to FFO per Share: 'LOXWHG(DUQLQJVSHU6KDUH (OLPLQDWHDPRXQWVSHUVKDUHH[FOXGHGIURP))2 'HSUHFLDWLRQDQGDPRUWL]DWLRQ... -
Page 42
...SSOLFDWLRQRI(,7)' 3URSHUW\DFTXLVLWLRQFRVWV 2WKHULWHPV &RUH))2SHUVKDUH Analysis of Net Income by Reportable Segment...LQFRPHDQGIRUIXUWKHULQIRUPDWLRQRQRXUUHSRUWDEOHVHJPHQWV Self-Storage Operations 2XUVHOIVWRUDJHRSHUDWLRQVDUHDQDO\]HGLQWZRJURXSV... -
Page 43
Self-Storage Operations Summary -
Page 44
...IRRW $W'HFHPEHU 6TXDUHIRRWRFFXSDQF\ $QQXDOFRQWUDFWUHQWSHU RFFXSLHGVTXDUHIRRWF D 5HYHQXHVDQGFRVWRIRSHUDWLRQVGRQRWLQFOXGHWHQDQWUHLQVXUDQFHDQGPHUFKDQGLVHVDOHUHYHQXHVDQGH[SHQVHV JHQHUDWHGDWWKHIDFLOLWLHV... -
Page 45
...QRWLFH :H EHOLHYH WKDW KLJK RFFXSDQFLHV KHOS PD[LPL]H RXU UHQWDO LQFRPH :H VHHN WR PDLQWDLQ D ZHLJKWHGDYHUDJHVTXDUHIRRWRFFXSDQF\OHYHORIDWOHDVWE\UHJXODUO\DGMXVWLQJWKHUHQWDOUDWHVDQG SURPRWLRQVRIIHUHGWRDWWUDFWQHZWHQDQWVDVZHOODVDGMXVWLQJRXUPDUNHWLQJ... -
Page 46
... IDFWRUVWKHXQLWVL]HDQGJHRJUDSKLFDOPL[RIWKHVSHFLILFWHQDQWVPRYLQJLQRUPRYLQJRXWWKHOHQJWKRI VWD\RIWKHWHQDQWVPRYLQJLQRUPRYLQJRXWFKDQJHV...DQGQRWSUHGLFWDEOH 2XUXWLOLW\H[SHQVHVDUHFRPSULVHGSULPDULO\RIHOHFWULFLW\FRVWVZKLFKDUHGHSHQGHQWXSRQHQHUJ\ SULFHVDQG... -
Page 47
...LQVXUDQFHEXVLQHVVOLFHQVHFRVWVEDQNFKDUJHVUHODWHGWRSURFHVVLQJWKHIDFLOLWLHV¶FDVK UHFHLSWV FUHGLW FDUG IHHV DQG WKH FRVW RI RSHUDWLQJ HDFK SURSHUW\¶V UHQWDO RIILFH LQFOXGLQJ VXSSOLHV DQG WHOHSKRQHGDWDFRPPXQLFDWLRQOLQHV7KHVHFRVWVLQFUHDVHGLQDVFRPSDUHG... -
Page 48
... 7RWDOFRVWRIRSHUDWLRQV 3URSHUW\WD[HV 5HSDLUV... -
Page 49
... 7KHIROORZLQJWDEOHVHWVIRUWKVHOHFWHGPDUNHWWUHQGVLQRXU6DPH6WRUH)DFLOLWLHV Same Store Facilities Operating Trends by Market HDU(QGHG'HFHPEHU -
Page 50
Same Store Facilities Operating Trends by Market :HLJKWHGDYHUDJHVTXDUHIRRW RFFXSDQF\ /RV$QJHOHV 6DQ)UDQFLVFR 1HZ -
Page 51
Same Store Facilities Operating Trends by Market (Continued) 5(93$) /RV$QJHOHV 6DQ)UDQFLVFR 1HZ -
Page 52
...2WKHUIDFLOLWLHV 7RWDOUHYHQXHV Cost of operations: DFTXLVLWLRQV DFTXLVLWLRQV DFTXLVLWLRQV 2WKHUIDFLOLWLHV 7RWDOFRVWRIRSHUDWLRQV -
Page 53
...SUHYLRXVRZQHUV+RZHYHULW FDQWDNHRUPRUHPRQWKVIRUXVWRIXOO\DFKLHYHWKHKLJKHUQHWRSHUDWLQJLQFRPHDQGWKHXOWLPDWHOHYHOV RIQHWRSHUDWLQJLQFRPHWREHDFKLHYHGFDQEHDIIHFWHGE\FKDQJHVLQJHQHUDOHFRQRPLFFRQGLWLRQV$VD UHVXOWWKHUHFDQEHQRDVVXUDQFHWKDWZHZLOODFKLHYH... -
Page 54
...QRWHG DERYHKRZHYHUZHEHOLHYHWKHJURZWKUDWHLQZLOOEHVXEVWDQWLDOO\OHVVWKDQ\HDURYHU\HDUJURZWK H[SHULHQFHGLQDQG &RVWRIRSHUDWLRQVSULPDULO\LQFOXGHVFODLPVSDLGWKDWDUH QRWFRYHUHGE\RXURXWVLGHWKLUGSDUW\ LQVXUHUV DV ZHOO DV FODLPV DGMXVWPHQW H[SHQVHV... -
Page 55
...HDUO\ Merchandise sales: :HVHOOORFNVER[HVDQGSDFNLQJVXSSOLHVDWRXUVHOIVWRUDJHIDFLOLWLHVDQG WKHOHYHORIVDOHVRIWKHVHLWHPVLVSULPDULO\LPSDFWHGE\WKHOHYHORIPRYHLQVDQGRWKHUFXVWRPHUWUDIILFDW RXUVHOIVWRUDJHIDFLOLWLHV:HGRQRWH[SHFWDQ\VLJQLILFDQWFKDQJHVLQ... -
Page 56
...D¼PLOOLRQGLYLGHQGWREHSDLGE\6KXUJDUG(XURSH 2XUIXWXUHHDUQLQJVIURP6KXUJDUG(XURSHZLOOEHDIIHFWHGSULPDULO\E\WKHRSHUDWLQJUHVXOWVRILWV H[LVWLQJIDFLOLWLHVDVZHOODVWKHH[FKDQJHUDWHEHWZHHQWKH86'ROODUDQGFXUUHQFLHVLQWKHFRXQWULHVLQ ZKLFK6KXUJDUG(XURSHFRQGXFWV... -
Page 57
...YDULRXVVWDWHDQGORFDODXWKRULWLHVWKH LQWHUQDODQGH[WHUQDOFRVWVRIILOLQJWD[UHWXUQVFRVWVDVVRFLDWHGZLWKFRPSO\LQJZLWKIHGHUDODQG... 5(,7 UXOHV 6XFK FRVWV YDU\ SULPDULO\EDVHGXSRQWKHWD[UDWHVRIWKHYDULRXVVWDWHVLQZKLFKZHGREXVLQHVV /HJDO FRVWV LQFOXGH LQWHUQDO... -
Page 58
...UHFHLYHGIURPWLPHWRWLPHLQYDU\LQJDPRXQWV,QWHUHVWLQFRPHRQFDVKEDODQFHVKDVEHHQ PLQLPDO EHFDXVH UDWHV KDYH EHHQ DW KLVWRULF ORZV RI RU OHVV DQG ZH H[SHFW WKLV WUHQG WR FRQWLQXH LQ WKH IRUHVHHDEOHIXWXUH)XWXUHHDUQLQJVIURPVXQGU\RWKHULQFRPHLWHPVDUHQRW... -
Page 59
...FRXOGDOORZXVWRLVVXHD VLJQLILFDQWDPRXQWRIXQVHFXUHGGHEWDWORZHULQWHUHVWUDWHVWKDQWKHFRXSRQUDWHVRQSUHIHUUHGVHFXULWLHVLI ZHFKRVHWR Liquidity and Capital Resource Analysis::HEHOLHYHWKDWRXUQHWFDVKSURYLGHGE\RXURSHUDWLQJ DFWLYLWLHV ZLOO FRQWLQXH WR EH VXIILFLHQW... -
Page 60
...RQ H[LVWLQJ GHEW 2XU FDSLWDOQHHGVPD\LQFUHDVHVLJQLILFDQWO\RYHUWKHFRXUVHRIDWRXURSWLRQZHPD\UHGHHPSUHIHUUHG VHFXULWLHV WRWDOLQJ PLOOLRQ ZH H[SHFW...WR WKHGHYHORSPHQWRIQHZIDFLOLWLHVRUWKHH[SDQVLRQRIQHWUHQWDEOHVTXDUHIRRWDJHRIH[LVWLQJIDFLOLWLHV)RU ... -
Page 61
...\IDFWRUVLQFOXGLQJZKHWKHUZHFDQLVVXHFDSLWDODWDORZHUFRVWRIFDSLWDOWKDQWKHVKDUHV WKDWZRXOGEHUHGHHPHG1RQHRIRXUSUHIHUUHGVHFXULWLHVDUHUHGHHPDEOHDWWKHRSWLRQRIWKHKROGHUV Repurchases of Company's Common Shares 2XU %RDUG KDV DXWKRUL]HG PDQDJHPHQW WR UHSXUFKDVH XS... -
Page 62
...6HH1RWHWRRXU'HFHPEHU ILQDQFLDOVWDWHPHQWVIRUDGGLWLRQDOLQIRUPDWLRQRQRXUQRWHVSD\DEOH 5HIOHFWV WKH ¼ PLOOLRQ RI (XURGHQRPLQDWHG VHQLRU XQVHFXUHG QRWHV WKH ³6HQLRU 1RWHV´ ZH LVVXHGWRDQLQVWLWXWLRQDOLQYHVWRURQ1RYHPEHUEHDULQJLQWHUHVW... -
Page 63
... 7A. Quantitative and Qualitative Disclosures about Market Risk 7ROLPLWRXUH[SRVXUHWR... WR DQ LQVWLWXWLRQDO LQYHVWRU RQ 1RYHPEHU ZKLFKKDYHDERRNYDOXHRIPLOOLRQDW'HFHPEHU 7KH IDLU YDOXH RI RXU IL[HG UDWH GHEW DW 'HFHPEHU DSSUR[LPDWHV... -
Page 64
...2IILFHUFRQFOXGHG WKDWRXUGLVFORVXUHFRQWUROVDQGSURFHGXUHVZHUHHIIHFWLYHDVRI'HFHPEHUDWDUHDVRQDEOHDVVXUDQFHOHYHO Management's Report on Internal Control Over Financial Reporting 2XU PDQDJHPHQW LV UHVSRQVLEOH IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ DGHTXDWH LQWHUQDO FRQWURO... -
Page 65
Report of Independent Registered Public Accounting Firm 7KH%RDUGRI7UXVWHHVDQG6KDUHKROGHUVRI 3XEOLF6WRUDJH :H KDYH DXGLWHG 3XEOLF 6WRUDJH¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DV RI 'HFHPEHU EDVHG RQ FULWHULD HVWDEOLVKHG LQ Internal Control-Integrated... -
Page 66
ITEM 9B. 1RQH Other Information -
Page 67
... and Chief Executive Officer of Public Storage since August 2011 and November 2002, respectively. Mr. Havner joined Public Storage in 1986 and has held a variety of senior management positions. Mr. Havner has been Chairman of the Board of Public Storage's affiliate, PS Business Parks, Inc. ("PSB... -
Page 68
...0HHWLQJRI6KDUHKROGHUVWREHILOHGSXUVXDQWWR5HJXODWLRQ$ XQGHUWKH([FKDQJH$FW ITEM 13. Certain Relationships and Related Transactions and...0HHWLQJRI6KDUHKROGHUV WREHILOHGSXUVXDQWWR5HJXODWLRQ$ XQGHUWKH([FKDQJH$FW ITEM 14. Principal Accountant Fees and Services 7KH... -
Page 69
...LQDQFLDO6WDWHPHQWV 7KHILQDQFLDOVWDWHPHQWVOLVWHGLQWKHDFFRPSDQ\LQJ,QGH[WR)LQDQFLDO6WDWHPHQWVDQG6FKHGXOHVKHUHRI DUHILOHGDVSDUWRIWKLVUHSRUW 7KHILQDQFLDOVWDWHPHQWVVFKHGXOHVOLVWHGLQWKHDFFRPSDQ\LQJ,QGH[WR)LQDQFLDO6WDWHPHQWVDQG 6FKHGXOHVDUHILOHGDVSDUW... -
Page 70
... )LOHG ZLWK WKH 5HJLVWUDQW¶V $QQXDO 5HSRUW RQ )RUP . IRU WKH \HDU HQGHG 'HFHPEHUDQGLQFRUSRUDWHGE\UHIHUHQFHKHUHLQ %\ODZV RI 3XEOLF 6WRUDJH D 0DU\ODQG UHDO HVWDWH LQYHVWPHQW WUXVW )LOHG ZLWK WKH 5HJLVWUDQW¶V &XUUHQW 5HSRUWRQ)RUP.GDWHG0D... -
Page 71
...5HSRUWRQ)RUP.RQ-XO\DQGLQFRUSRUDWHGKHUHLQE\UHIHUHQFH 7KLUG$PHQGPHQWWRWKH$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQWGDWHGDVRI0DUFKDPRQJ 3XEOLF6WRUDJHWKHOHQGHUVSDUW\WKHUHWRDQG:HOOV)DUJR%DQN1DWLRQDO$VVRFLDWLRQDVDJHQW)LOHGDV ([KLELW WR... -
Page 72
... )LOHG ZLWK5HJLVWUDQW¶V&XUUHQW5HSRUWRQ)RUP.GDWHG0D\DQGLQFRUSRUDWHGKHUHLQE\UHIHUHQFH 1RWH 3XUFKDVH $JUHHPHQW GDWHG DV RI 1RYHPEHU E\ DQG DPRQJ 3XEOLF 6WRUDJH DQG WKH VLJQDWRULHV WKHUHWR )LOHG ZLWK 5HJLVWUDQW¶V &XUUHQW 5HSRUW RQ )RUP... -
Page 73
... $OO RWKHU VFKHGXOHV KDYH EHHQ RPLWWHG VLQFH WKH UHTXLUHG LQIRUPDWLRQ LV QRW SUHVHQW RU QRW SUHVHQW LQ DPRXQWV VXIILFLHQW WR UHTXLUH VXEPLVVLRQ RI WKH VFKHGXOH RU EHFDXVH WKH LQIRUPDWLRQ UHTXLUHG LV LQFOXGHG LQ WKH ILQDQFLDO VWDWHPHQWVRUQRWHVWKHUHWR -
Page 74
... RQ WKHVH ILQDQFLDO VWDWHPHQWV DQG ILQDQFLDOVWDWHPHQWVFKHGXOHEDVHGRQRXUDXGLWV :H FRQGXFWHG RXU DXGLWV LQ DFFRUGDQFH ZLWK WKH VWDQGDUGV RI WKH 3XEOLF &RPSDQ\ $FFRXQWLQJ 2YHUVLJKW %RDUG 8QLWHG6WDWHV7KRVHVWDQGDUGVUHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLWWRREWDLQ... -
Page 75
PUBLIC STORAGE BALANCE SHEETS (Amounts in thousands, except share data) December 31, ASSETS &DVKDQGFDVKHTXLYDOHQWV 5HDOHVWDWHIDFLOLWLHVDW...HTXLW\ 7RWDOOLDELOLWLHVDQGHTXLW\ December 31, 2014 2015 6HHDFFRPSDQ\LQJQRWHV ) -
Page 76
PUBLIC STORAGE STATEMENTS OF INCOME (Amounts in thousands, except per share amounts) Revenues: 6HOIVWRUDJHIDFLOLWLHV $QFLOODU\RSHUDWLRQV Expenses: 6HOIVWRUDJHFRVWRIRSHUDWLRQV $QFLOODU\FRVWRIRSHUDWLRQV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ *HQHUDO... -
Page 77
PUBLIC STORAGE STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) 1HWLQFRPH 2WKHUFRPSUHKHQVLYHLQFRPHORVV $JJUHJDWHIRUHLJQFXUUHQF\H[FKDQJHORVVJDLQ $GMXVWIRUIRUHLJQFXUUHQF\H[FKDQJHJDLQ... -
Page 78
PUBLIC STORAGE STATEMENTS OF EQUITY (Amounts in thousands, except share and per share amounts) &XPXODWLYH 3UHIHUUHG 6KDUHV ...Balances at December 31, 2012 ,VVXDQFHRISUHIHUUHGVKDUHV1RWH ,VVXDQFHRIFRPPRQVKDUHVLQFRQQHFWLRQ...Balances at December 31, 2014 -
Page 79
PUBLIC STORAGE STATEMENTS OF EQUITY (Amounts in thousands, except share and per share amounts) &XPXODWLYH 3UHIHUUHG 6KDUHV RPPRQ ...RIFRPPRQVKDUHVQHWRI VKDUHEDVHGFRPSHQVDWLRQH[SHQVH1RWH $FTXLVLWLRQRI... 31, 2015 6HHDFFRPSDQ\LQJ... -
Page 80
PUBLIC STORAGE STATEMENTS OF CASH FLOWS (Amounts in thousands) &DVKIORZVIURPRSHUDWLQJ...HVWDWHHQWLWLHV 3URFHHGVIURPVDOHRIUHDOHVWDWHIDFLOLWLHV 'LVSRVLWLRQRISRUWLRQRIORDQUHFHLYDEOHIURP 6KXUJDUG(XURSH 5HSD\PHQWVRIORDQUHFHLYDEOHIURP6KXUJDUG(XURSH ... -
Page 81
PUBLIC STORAGE STATEMENTS OF CASH FLOWS (Amounts in thousands) Supplemental schedule of non-cash investing and financing activities: )RUWKH -
Page 82
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 'HVFULSWLRQRIWKH%XVLQHVV 3XEOLF 6WRUDJH UHIHUUHG WR KHUHLQ DV ³WKH &RPSDQ\´ ³ZH´ ³XV´ RU ³RXU´ D 0DU\ODQG UHDO HVWDWH LQYHVWPHQWWUXVWZDVRUJDQL]HGLQ2XU... -
Page 83
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 :HFRQVROLGDWHDOOHQWLWLHVWKDWZHFRQWUROWKHVHHQWLWLHVIRU...LQWUDHQWLW\ SURILWV DQG ORVVHV DQG DPRUWL]LQJDQ\GLIIHUHQFHVEHWZHHQWKHFRVWRIRXULQYHVWPHQWDQGWKHXQGHUO\LQJHTXLW\LQQHWDVVHWVDJDLQVW HTXLW\LQHDUQLQJV... -
Page 84
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 :HDOORFDWHWKHQHWDFTXLVLWLRQFRVWRIDFTXLUHGRSHUDWLQJVHOIVWRUDJHIDFLOLWLHVWRWKHXQGHUO\LQJODQG EXLOGLQJVLGHQWLILHGLQWDQJLEOHDVVHWVDQGDQ\QRQFRQWUROOLQJLQWHUHVWVWKDWUHPDLQRXWVWDQGLQJEDVHGXSRQWKHLU UHVSHFWLYH... -
Page 85
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 HVWDWHIDFLOLWLHVSURMHFWHGOHYHOVRIHDUQLQJVFRVWVRI...LQWHUHVWVLQODQGDUHILQLWHOLYHGDQGDUHDPRUWL]HGUHODWLYH WRWKHEHQHILWRIWKHFXVWRPHUVLQSODFHRUWKHEHQHILWWRODQGOHDVHH[SHQVHWRHDFKSHULRG$W'HFHPEHU... -
Page 86
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 GHWHUPLQHWKDWWKHIDLUYDOXHRIWKHUHSRUWLQJXQLWH[FHHGVWKHDJJUHJDWHFDUU\LQJDPRXQWQRLPSDLUPHQWFKDUJH LV UHFRUGHG 2WKHUZLVH ZH UHFRUG DQ LPSDLUPHQW FKDUJH WR WKH H[WHQW WKH FDUU\LQJ DPRXQW RI WKH JRRGZLOO... -
Page 87
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 &RPSUHKHQVLYH,QFRPH 7RWDO FRPSUHKHQVLYH LQFRPH UHSUHVHQWV ...LQFRPHLVDOORFDWHGWRLQRQFRQWUROOLQJLQWHUHVWVEDVHGXSRQWKHLUVKDUHRIWKHQHWLQFRPHRIWKH 6XEVLGLDULHVLLSUHIHUUHGVKDUHKROGHUVWRWKHH[WHQWUHGHPSWLRQ... -
Page 88
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 5HDO(VWDWH)DFLOLWLHV $FWLYLW\LQUHDOHVWDWHIDFLOLWLHVGXULQJDQGLVDVIROORZV ... IRU D WRWDORIPLOOLRQLQFDVKSURFHHGVRIZKLFKPLOOLRQZDVFROOHFWHGLQ... -
Page 89
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 PLOOLRQ :H DOORFDWHG DSSUR[LPDWHO\ ELOOLRQ... 7KLV GLIIHUHQWLDOLVEHLQJDPRUWL]HGDVDUHGXFWLRQLQHTXLW\LQ HDUQLQJVRIWKH8QFRQVROLGDWHG5HDO(VWDWH (QWLWLHV EDVHG XSRQ DOORFDWLRQV WR WKH XQGHUO\... -
Page 90
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 PLOOLRQ,QFRQQHFWLRQZLWK36%¶VFRPPRQVKDUHLVVXDQFHZHUHFRJQL]HGDJDLQRQVDOHRIUHDOHVWDWH WRWDOLQJPLOOLRQDVLIZHKDGVROGDSURSRUWLRQDWHVKDUHRIRXULQYHVWPHQWLQ36% 7KH IROORZLQJ WDEOH VHWV IRUWK... -
Page 91
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 $VRI'HFHPEHU 7RWDODVVHWVSULPDULO\VHOIVWRUDJHIDFLOLWLHV 7RWDOGHEWWRWKLUGSDUWLHV 2WKHUOLDELOLWLHV (TXLW\ ([FKDQJHUDWHRI(XURWR86'ROODU ... -
Page 92
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 SDLG WR XV LV LQFOXGHG LQ ³LQWHUHVW DQG RWKHU LQFRPH´ ... EH UHSDLG LQ WKH IRUHVHHDEOH IXWXUH FKDQJHV LQ WKH 86 'ROODU HTXLYDOHQW RI WKH DPRXQW GXH XV GXH WR FKDQJH LQ WKH IRUHLJQ H[FKDQJH UDWHV... -
Page 93
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 2Q'HFHPEHUZHERUURZHGPLOOLRQIURP:HOOV)DUJRXQGHUDQXQVHFXUHGWHUPORDQWKH ³7HUP/RDQ´7KH7HUP/RDQZDVUHSDLGLQ:HLQFXUUHGRULJLQDWLRQFRVWVRIPLOOLRQZKLFKZHUH DPRUWL]HGXVLQJWKH... -
Page 94
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 'XULQJDQGZHDFTXLUHG1RQFRQWUROOLQJ,QWHUHVWVIRUPLOOLRQPLOOLRQDQG PLOOLRQUHVSHFWLYHO\LQFDVKVXEVWDQWLDOO\DOORIZKLFKZDVDOORFDWHGWRSDLGLQFDSLWDO$OVRGXULQJ QRQFRQWUROOLQJ... -
Page 95
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 ,QZHUHGHHPHGRXU6HULHV2DQG6HULHV33UHIHUUHG6KDUHVDWSDU7KHDJJUHJDWHUHGHPSWLRQ DPRXQW EHIRUH SD\PHQW RI DFFUXHG GLYLGHQGV ZDV PLOOLRQ :H UHFRUGHGPLOOLRQ LQ (,7) ' DOORFDWLRQV RI... -
Page 96
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 7KHRUGLQDU\LQFRPHGLYLGHQGVGLVWULEXWHGIRUWKHWD[\HDUHQGHG'...ZLOOEHPHW :H DPRUWL]H WKH JUDQWGDWH IDLU YDOXH RI DZDUGV QHW RI DQWLFLSDWHG IRUIHLWXUHV DV FRPSHQVDWLRQ H[SHQVHRYHUWKHVHUYLFHSHULRG7KH... -
Page 97
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 H[HUFLVHSULFHLVHTXDOWRWKHFORVLQJWUDGLQJSULFHRIRXUFRPPRQVKDUHVRQWKHJUDQW...RIRSWLRQVH[HUFLVHGGXULQJWKH\HDULQ V Average assumptions used in valuing options with the Black-Scholes method: ([SHFWHGOLIHRI... -
Page 98
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 :H H[SHQVH DQ\ GLYLGHQGV SUHYLRXVO\ SDLG XSRQ IRUIHLWXUH RI WKH UHODWHG 568 8SRQ YHVWLQJ WKH JUDQWHH UHFHLYHVFRPPRQVKDUHVHTXDOWRWKHQXPEHURI... PLOOLRQZKLFKLVQHWRIH[SHFWHGIRUIHLWXUHVDQGLVH[SHFWHG... -
Page 99
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 6HOI6WRUDJH2SHUDWLRQV 7KH 6HOI6WRUDJH 2SHUDWLRQV ...DVVHVVLQJ SHUIRUPDQFH DQG GHFLVLRQ PDNLQJ)RUDOOSHULRGVSUHVHQWHGVXEVWDQWLDOO\DOORIRXUUHDOHVWDWH IDFLOLWLHV JRRGZLOODQGRWKHULQWDQJLEOH DVVHWVRWKHUDVVHWV... -
Page 100
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 Year ended December 31, 2015 Revenues: 6HOIVWRUDJHRSHUDWLRQV $QFLOODU\RSHUDWLRQV Cost of operations: 6HOIVWRUDJHRSHUDWLRQV $QFLOODU\RSHUDWLRQV Investment Self-Storage...RI... -
Page 101
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 Year ended December 31, 2014 Revenues: 6HOIVWRUDJHRSHUDWLRQV $QFLOODU\RSHUDWLRQV Cost of operations: 6HOIVWRUDJHRSHUDWLRQV $QFLOODU\RSHUDWLRQV Investment Self-Storage...RI... -
Page 102
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 Year ended December 31, 2013 Revenues: 6HOIVWRUDJHRSHUDWLRQV $QFLOODU\RSHUDWLRQV Cost of operations: 6HOIVWRUDJHRSHUDWLRQV $QFLOODU\RSHUDWLRQV Investment Self-Storage Ancillary ... -
Page 103
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 HIIHFWLYHIRUDQQXDOUHSRUWLQJSHULRGVEHJLQQLQJDIWHU...DQGVXEMHFWWRYDULRXVFODLPVDQGFRPSODLQWVKRZHYHUZH EHOLHYHWKDWWKHOLNHOLKRRGRIWKHVHFRQWLQJHQFLHVUHVXOWLQJLQDPDWHULDOORVVWRWKH&RPSDQ\HLWKHULQGLYLGXDOO\ RULQ... -
Page 104
PUBLIC STORAGE NOTES TO FINANCIAL STATEMENTS December 31, 2015 6XSSOHPHQWDU\4XDUWHUO\)LQDQFLDO'DWDXQDXGLWHG 6HOIVWRUDJHDQGDQFLOODU\UHYHQXHV 6HOIVWRUDJHDQGDQFLOODU\FRVWRIRSHUDWLRQV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ 1HW,QFRPH 3HU&RPPRQ... -
Page 105
... 1RRI (QFXP )DFLOLWLHV EUDQFHV... -
Page 106
... 1RRI (QFXP 'HVFULSWLRQ )DFLOLWLHV EUDQFHV 6DFUDPHQWR 6W/RXLV ,QGLDQDSROLV .DQVDV&LW... -
Page 107
... 1RRI (QFXP )DFLOLWLHV EUDQFHV ,QLWLDO&RVW &RVWV %XLOGLQJV 6XEVHTXHQW /DQG ,PSURYHPHQWV WR$FTXLVLWLRQ... -
Page 108
...DSSHDULQJ LQ WKH GHILQLWLRQ RI ³$SSOLFDEOH0DUJLQ´LQ6HFWLRQLQLWVHQWLUHW\WRUHDGDVIROORZV Level Ratio of Total Indebtedness to Gross Asset Value /HVV WKDQ RU ...UHDWHUWKDQWR Applicable Margin for LIBOR Loans Applicable Margin for Base Rate Loans -
Page 109
...WR6HFWLRQLQ WKHLUDSSURSULDWHDOSKDEHWLFDORUGHUORFDWLRQ ³PS Business Park Group´PHDQV36%XVLQHVV3DUNV,QFD&DOLIRUQLD FRUSRUDWLRQ36%XVLQHVV3DUNV/3D&DOLIRUQLDOLPLWHGSDUWQHUVKLSDQGDQ\6XEVLGLDU\ RI36%XVLQHVV3DUNV,QFRU36%XVLQHVV3DUNV/3 ³Shurgard... -
Page 110
... $JUHHPHQW DV DPHQGHG E\ WKLV $PHQGPHQWLQDFFRUGDQFHZLWKWKHLUUHVSHFWLYHWHUPVGRQRWDQGZLOOQRWE\WKHSDVVDJHRIWLPHWKH JLYLQJ RI QRWLFH RU ERWK LUHTXLUH DQ\ *RYHUQPHQWDO $SSURYDO RU YLRODWH DQ\ $SSOLFDEOH /DZ LQFOXGLQJDOO(QYLURQPHQWDO/DZVUHODWLQJWR... -
Page 111
...RQO\ 7KH &UHGLW $JUHHPHQW LV KHUHE\ UDWLILHG DQG FRQILUPHG LQ DOO UHVSHFWV1RWKLQJLQWKLV$PHQGPHQWVKDOOOLPLWLPSDLURUFRQVWLWXWHDZDLYHURIWKHULJKWVSRZHUVRU UHPHGLHVDYDLODEOHWRWKH$JHQWRUWKH/HQGHUVXQGHUWKH&UHGLW$JUHHPHQWRUDQ\RWKHU/RDQ'RFXPHQW 6HFWLRQ... -
Page 112
... ,1:,71(66:+(5(2)WKHSDUWLHVKHUHWRKDYHFDXVHGWKLV )RXUWK$PHQGPHQWWR$PHQGHG DQG5HVWDWHG&UHGLW$JUHHPHQWWREHH[HFXWHGDVRIWKHGDWHILUVWDERYHZULWWHQ 38%/,&6725$*( %\ V-RKQ5H\HV 1DPH-RKQ5H\HV 7LWOH&KLHI)LQDQFLDO2IILFHU >6LJQDWXUHV... -
Page 113
>Signature Page to Fourth Amendment to Amended and Restated Credit Agreement for Public Storage] :(//6)$5*2%$1.1$7,21$/$662&,$7,21DV $JHQWDV6ZLQJOLQH/HQGHUDQGDVD/HQGHU V'DOH1RUWKUXS 1DPH'DOH1RUWKUXS 7LWOH6HQLRU9LFH3UHVLGHQW >6LJQDWXUHV&... -
Page 114
>Signature Page to Fourth Amendment to Amended and Restated Credit Agreement for Public Storage] %$1.2)$0(5,&$1 V+HOHQ&KDQ 1DPH+HOHQ&KDQ 7LWOH9LFH3UHVLGHQW >6LJQDWXUHV&RQWLQXHGRQ1H[W3DJH@ -
Page 115
>Signature Page to Fourth Amendment to Amended and Restated Credit Agreement for Public Storage] &,7,%$1.1 V-RKQ5RZODQG 1DPH-RKQ5RZODQG 7LWOH9LFH3UHVLGHQW >6LJQDWXUHV&RQWLQXHGRQ1H[W3DJH@ -
Page 116
>Signature Page to Fourth Amendment to Amended and Restated Credit Agreement for Public Storage] 025*$167$1/(6LJQDWXUHV&RQWLQXHGRQ1H[W3DJH@ -
Page 117
>Signature Page to Fourth Amendment to Amended and Restated Credit Agreement for Public Storage] 8%6$*67$0)25'%5$1 V'DUOHQH$ULDV 1DPH'DUOHQH$ULDV 7LWOH'LUHFWRU V&UDLJ3HDUVRQ 1DPH&UDLJ3HDUVRQ 7LWOH$VVRFLDWH'LUHFWRU -
Page 118
...11 PUBLIC STORAGE 2007 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN, AS AMENDED FORM OF RESTRICTED SHARE UNIT AGREEMENT THISRESTRICTED SHARE UNIT AGREEMENTWKH³$JUHHPHQW´LVHQWHUHGHIIHFWLYHDVRI>'DWHRI *UDQW@E\DQGEHWZHHQ3XEOLF6WRUDJHWKH³7UXVW´DQG>1DPHRI*UDQWHH... -
Page 119
...\PHQWVKDOOEHPDGHDWWKHVDPHWLPHDVWKH7UXVW¶VSD\PHQWRIDFDVKGLYLGHQGRQLWV RXWVWDQGLQJ6KDUHV 5. REQUIREMENTS OF LAW. 7KH7UXVW...REOLJDWHGWRUHJLVWHUDQ\VHFXULWLHVFRYHUHGKHUHE\SXUVXDQWWRWKH6HFXULWLHV$FWRIDVQRZLQ HIIHFWRUDVKHUHDIWHUDPHQGHG7KH7UXVWVKDOO... -
Page 120
...HYHQWWKDWWKHUHFHLSWRIDQ\VXFKULJKWWRH[...RIWKH6WDWHRI&DOLIRUQLDEXWQRWLQFOXGLQJWKHFKRLFHRIODZ UXOHVWKHUHRI IN WITNESS WHEREOFWKHSDUWLHVKHUHWRKDYHFDXVHGWKLV5HVWULFWHG6KDUH8QLW$JUHHPHQWWREHGXO\ H[HFXWHGDVRIWKHGDWHILUVWDERYHZULWWHQ PUBLIC STORAGE... -
Page 121
Exhibit 10.12 PUBLIC STORAGE 2007 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN, AS AMENDED FORM OF RESTRICTED SHARE UNIT AGREEMENT THISRESTRICTED SHARE UNIT AGREEMENTWKH³$JUHHPHQW´LVHQWHUHGLQWRHIIHFWLYHDVRI>'DWH RI*UDQW@E\DQGEHWZHHQ3XEOLF6WRUDJHWKH³7UXVW´... -
Page 122
...LVUHIHUUHGWREHORZDVWKH5HVWULFWHG3HULRG 2.2. Restrictions on Transfer. 7KH*UDQWHHPD\QRWVHOOWUDQVIHUDVVLJQSOHGJHRURWKHUZLVHHQFXPEHURUGLVSRVHRIWKH5HVWULFWHG6KDUH 8QLWV 2.3. Delivery of Shares. :KHQDQ\VKDUHVDUHSDLGWR*UDQWHHHLWKHUXSRQYHVWLQJSXUVXDQW... -
Page 123
...SD\PHQWVKDOOEHPDGHDWWKHVDPHWLPHDVWKH7UXVW¶VSD\PHQWRIDFDVKGLYLGHQGRQLWV RXWVWDQGLQJ6KDUHV 6. REQUIREMENTS OF LAW. 7KH7UXVW...\EHSRVWSRQHGXQWLOWKHGHIHUUDO SHULRGHQGV6XEMHFWWRWKHSULRUDSSURYDORIWKH7UXVWRUWKH6XEVLGLDU\DVDSSOLFDEOHZKLFKPD\EHZLWKKHOGE\WKH ... -
Page 124
...[DPRXQWWKDWFRXOGEHUHFHLYHGE\*UDQWHHZLWKRXWFDXVLQJDQ\VXFKSD\PHQWRUEHQHILWWREHFRQVLGHUHGD 3DUDFKXWH3D\PHQW,QWKHHYHQWWKDWWKHUHFHLSWRIDQ\VXFKULJKWWRH[HUFLVHSD\PHQWRUEHQHILWXQGHUWKLV $JUHHPHQWLQFRQMXQFWLRQZLWKDOORWKHUULJKWVSD\PHQWVRUEHQHILWVWRRUIRU... -
Page 125
IN WITNESS WHEREOFWKHSDUWLHVKHUHWRKDYHFDXVHGWKLV5HVWULFWHG6KDUH8QLW$JUHHPHQWWREHGXO\ H[HFXWHGDVRIWKHGDWHILUVWDERYHZULWWHQ PUBLIC STORAGE %\ 1DPH 7LWOH GRANTEE: 3ULQW1DPH -
Page 126
Exhibit 10.13 PUBLIC STORAGE 2007 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN, AS AMENDED FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT THIS STOCK OPTION AGREEMENTWKH³2SWLRQ$JUHHPHQW´LVPDGHDVRIWKHBBBBGD\RI BBBBBBBBBBBWKH³*UDQW'DWH´E\DQGEHWZHHQ3XEOLF... -
Page 127
...ZKHWKHURUQRWWKH2SWLRQZDVH[HUFLVDEOHLPPHGLDWHO\SULRUWRWKH2SWLRQHH¶V'LVDELOLW\ 3.8 Reduction in Number of Shares Subject to Option. 7KHQXPEHURIVKDUHVRI&RPPRQ6WRFNZKLFKPD\EHSXUFKDVHGXSRQH[HUFLVHRIWKH2SWLRQSXUVXDQWWRWKLV 6HFWLRQVKDOOEHUHGXFHGE\WKHQXPEHU... -
Page 128
...DUHWREHSDLGWKHIDUWKHVWLQWLPHIURPWKHGDWHRIVXFKUHGXFWLRQ 6. LIMITATIONS ON TRANSFER. 7KH2SWLRQLVQRWWUDQVIHUDEOHE\WKH2SWLRQHHRWKHUWKDQE\ZLOORUWKHODZVRIGHVFHQWDQGGLVWULEXWLRQLQWKH HYHQWRIGHDWKRIWKH2SWLRQHHDQGH[FHSWWKDWWKH2SWLRQHHPD\WUDQVIHUWKH2SWLRQ... -
Page 129
...OF CHANGES IN CAPITALIZATION. 8.1 Changes in Shares. ,IWKHQXPEHURIRXWVWDQGLQJVKDUHVRI&RPPRQ6WRFNLVLQFUHDVHGRUGHFUHDVHGRUFKDQJHGLQWRRUH[FKDQJHG IRUDGLIIHUHQWQXPEHURUNLQGRIVWRFNRURWKHUVHFXULWLHVRIWKH7UXVWE\UHDVRQRIDQ\UHFDSLWDOL]DWLRQUHFODVVLILFDWLRQ VWRFNVSOLW... -
Page 130
...WKH2SWLRQHHDQ\VXFKWD[HV7KH2SWLRQHHVKDOOPDNHDQ\VXFKSD\PHQWVLQ FDVKRUFDVKHTXLYDOHQWVRUVXEMHFWWRWKHSULRUDSSURYDORIWKH&RPPLWWHHZKLFKPD\EHZLWKKHOGLQWKH&RPPLWWHH¶V VROHGLVFUHWLRQWKH2SWLRQHHPD\HOHFWWRVDWLVI\WKHZLWKKROGLQJREOLJDWLRQLQZKROHRULQSDUW... -
Page 131
...RUGHOLYHUHGWRWKH7UXVWDWLWVSULQFLSDORIILFHDGGUHVVHGWRWKHDWWHQWLRQRIWKH&RUSRUDWH6HFUHWDU\RULIVRPDLOHGRU GHOLYHUHGWRVXFKRWKHU...JUHHPHQWWREHGXO\H[HFXWHGRQWKHLUEHKDOIDVRIWKHGD\DQG\HDUILUVWDERYHZULWWHQ PUBLIC STORAGE: %\ 1DPH 7LWOH ... -
Page 132
Exhibit 10.14 PUBLIC STORAGE 2007 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN, AS AMENDED FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT THIS STOCK OPTION AGREEMENTWKH³2SWLRQ$JUHHPHQW´LVPDGHDVRIWKHBBBBGD\RI BBBBBBBBBBBWKH³*UDQW'DWH´E\DQGEHWZHHQ... -
Page 133
...WRWKH 2SWLRQZKHWKHURUQRWWKH2SWLRQZDVH[HUFLVDEOHLPPHGLDWHO\SULRUWRWKH'LVDELOLW\ 3.8 Reduction in Number of Shares Subject to Option. 7KHQXPEHURIVKDUHVRI&RPPRQ6WRFNZKLFKPD\EHSXUFKDVHGXSRQH[HUFLVHRIWKH2SWLRQSXUVXDQWWRWKLV 6HFWLRQVKDOOEHUHGXFHGE\WKHQXPEHU... -
Page 134
...DUHWREHSDLGWKHIDUWKHVWLQWLPHIURPWKHGDWHRIVXFKUHGXFWLRQ 6. LIMITATIONS ON TRANSFER. 7KH2SWLRQLVQRWWUDQVIHUDEOHE\WKH2SWLRQHHRWKHUWKDQE\ZLOORUWKHODZVRIGHVFHQWDQGGLVWULEXWLRQLQWKH HYHQWRIGHDWKRIWKH2SWLRQHHDQGH[FHSWWKDWWKH2SWLRQHHPD\WUDQVIHUWKH2SWLRQ... -
Page 135
...OF CHANGES IN CAPITALIZATION. 8.1 Changes in Shares. ,IWKHQXPEHURIRXWVWDQGLQJVKDUHVRI&RPPRQ6WRFNLVLQFUHDVHGRUGHFUHDVHGRUFKDQJHGLQWRRUH[FKDQJHG IRUDGLIIHUHQWQXPEHURUNLQGRIVWRFNRURWKHUVHFXULWLHVRIWKH7UXVWE\UHDVRQRIDQ\UHFDSLWDOL]DWLRQUHFODVVLILFDWLRQ VWRFNVSOLW... -
Page 136
...WKH2SWLRQHHDQ\VXFKWD[HV7KH2SWLRQHHVKDOOPDNHDQ\VXFKSD\PHQWVLQ FDVKRUFDVKHTXLYDOHQWVRUVXEMHFWWRWKHSULRUDSSURYDORIWKH&RPPLWWHHZKLFKPD\EHZLWKKHOGLQWKH&RPPLWWHH¶V VROHGLVFUHWLRQWKH2SWLRQHHPD\HOHFWWRVDWLVI\WKHZLWKKROGLQJREOLJDWLRQLQZKROHRULQSDUW... -
Page 137
...JUHHPHQWRUFDXVHGWKLV 2SWLRQ$JUHHPHQWWREHGXO\H[HFXWHGRQWKHLUEHKDOIDVRIWKHGD\DQG\HDUILUVWDERYHZULWWHQ PUBLIC STORAGE %\ OPTIONEE 1DPH ADRESS AND NOTICE TO OPTIONEE: 1XPEHU6WUHHW &LW\6WDWH=LS&RGH... -
Page 138
PUBLIC STORAGE EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Year Ended December 31, 2015 2014 2013 2012 2011 1,317,689 (6,088) (15,242) 610 1,296,... (including capitalized interest) $ $ Cumulative preferred share cash dividends Allocations pursuant to EITF Topic D-42... -
Page 139
([KLELW Consent of Independent Registered Public Accounting Firm :HFRQVHQWWRWKHLQFRUSRUDWLRQE\UHIHUHQFHLQWKHIROORZLQJ...RQ)RUP61RDQGUHODWHGSURVSHFWXVRI3XEOLF6WRUDJHIRU WKH UHJLVWUDWLRQ RI FRPPRQ VKDUHV RI EHQHILFLDO LQWHUHVW SHUWDLQLQJ WR... -
Page 140
...DQGRWKHUILQDQFLDOLQIRUPDWLRQLQFOXGHGLQWKLVUHSRUWIDLUO\ SUHVHQWLQDOOPDWHULDOUHVSHFWVWKHILQDQFLDOFRQGLWLRQUHVXOWVRIRSHUDWLRQVDQGFDVKIORZVRIWKHUHJLVWUDQWDV RIDQGIRUWKHSHULRGVSUHVHQWHGLQWKLVUHSRUW 7KH UHJLVWUDQW V RWKHU FHUWLI\LQJ RIILFHUV DQG , DUH... -
Page 141
...DQGRWKHUILQDQFLDOLQIRUPDWLRQLQFOXGHGLQWKLVUHSRUWIDLUO\ SUHVHQWLQDOOPDWHULDOUHVSHFWVWKHILQDQFLDOFRQGLWLRQUHVXOWVRIRSHUDWLRQVDQGFDVKIORZVRIWKHUHJLVWUDQWDV RIDQGIRUWKHSHULRGVSUHVHQWHGLQWKLVUHSRUW 7KH UHJLVWUDQW V RWKHU FHUWLI\LQJ RIILFHUV DQG , DUH... -
Page 142
... In connection with the Annual Report on Form 10-K of Public Storage (the "Company") for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (the "SEC") on the date hereof (the "Report"), Ronald L. Havner, Jr., as Chairman, Chief Executive Officer and President of... -
Page 143
... Senior Vice President and Chief Human Resources Ofï¬cer Corporate Headquarters 701 Western Avenue Glendale, CA 91201-2349 Investor Relations Additional information contact Clemente Teng Vice President of Investor Services (818) 244-8080 Transfer Agent Computershare Trust Company, N.A. P.O. Box... -
Page 144
® Public Storage 701 Western Avenue, Glendale, California 91201-2349 ฀ ฀฀ ฀฀ (SKU 002CSN5FC3)