Public Storage 2015 Annual Report Download - page 39
Download and view the complete annual report
Please find page 39 of the 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.
PDQ\DVVXPSWLRQVDQGMXGJPHQWVLQFOXGLQJLPDUNHWUDWHVRIUHWXUQDQGFDSLWDOL]DWLRQUDWHVRQUHDOHVWDWH
DQG LQWDQJLEOH DVVHWV LL EXLOGLQJ DQG PDWHULDO FRVW OHYHOV LLL FRPSDULVRQV RI WKH DFTXLUHG XQGHUO\LQJ
ODQG SDUFHOV WR UHFHQW ODQG WUDQVDFWLRQV DQG LY IXWXUH FDVK IORZV IURP WKH UHDO HVWDWH DQG WKH H[LVWLQJ
WHQDQWEDVH2WKHUVFRXOGFRPHWRPDWHULDOO\GLIIHUHQWFRQFOXVLRQVDVWRWKHHVWLPDWHGIDLUYDOXHVZKLFK
ZRXOG UHVXOW LQ GLIIHUHQW GHSUHFLDWLRQ DQG DPRUWL]DWLRQ H[SHQVH JDLQV DQG ORVVHV RQ VDOH RI UHDO HVWDWH
DVVHWVDQGUHDOHVWDWHDQGLQWDQJLEOHDVVHWV
MD&A Overview
2XU VHOIVWRUDJH RSHUDWLRQV JHQHUDWHG PRVW RI RXU QHW LQFRPH IRU DOO SHULRGV SUHVHQWHG
$FFRUGLQJO\ D VLJQLILFDQW SRUWLRQ RI PDQDJHPHQW¶V WLPH LV GHYRWHG WR PD[LPL]LQJ FDVK IORZV IURP RXU
H[LVWLQJVHOIVWRUDJHIDFLOLWLHVDVZHOODVVHHNLQJDGGLWLRQDOLQYHVWPHQWVLQVHOIVWRUDJHIDFLOLWLHV
0RVWRIRXUIDFLOLWLHVFRPSHWHZLWKRWKHUZHOOPDQDJHGDQGZHOOORFDWHGFRPSHWLWRUVDQGZHDUH
VXEMHFWWRJHQHUDOHFRQRPLFFRQGLWLRQVSDUWLFXODUO\WKRVHWKDWDIIHFWWKHVSHQGLQJKDELWVRIFRQVXPHUVDQG
PRYLQJ WUHQGV :H EHOLHYH WKDW RXU FHQWUDOL]HG LQIRUPDWLRQ QHWZRUNV QDWLRQDO WHOHSKRQH DQG RQOLQH
UHVHUYDWLRQV\VWHPWKHEUDQGQDPH³3XEOLF6WRUDJH´DQGRXUHFRQRPLHVRIVFDOHHQDEOHXVWRPHHWVXFK
FKDOOHQJHVHIIHFWLYHO\
'XULQJ DQG ZH DFTXLUHG DQG IDFLOLWLHV UHVSHFWLYHO\ IURP WKLUG
SDUWLHV IRU DSSUR[LPDWHO\ PLOOLRQ PLOOLRQ DQG ELOOLRQ UHVSHFWLYHO\ 6XEVHTXHQW WR
'HFHPEHU ZH DFTXLUHG RU ZHUH XQGHU FRQWUDFW WR DFTXLUH VHOIVWRUDJH IDFLOLWLHV ZLWK
PLOOLRQ QHW UHQWDEOH VTXDUH IHHW IRU PLOOLRQ :H ZLOO FRQWLQXH WR VHHN WR DFTXLUH SURSHUWLHV
KRZHYHUWKHUHLVVLJQLILFDQWFRPSHWLWLRQWRDFTXLUHH[LVWLQJIDFLOLWLHVDQGWKHUHFDQEHQRDVVXUDQFHDVWR
WKHOHYHORIIDFLOLWLHVZHPD\DFTXLUH
6LQFHWKHEHJLQQLQJRIZHRSHQHGGHYHORSPHQWDQGH[SDQVLRQSURMHFWVZLWKDWRWDOFRVWRI
PLOOLRQDGGLQJDSSUR[LPDWHO\PLOOLRQQHWUHQWDEOHVTXDUHIHHW$VRI'HFHPEHUZHKDG
DGGLWLRQDOSURMHFWVZKLFKZLOODGGDSSUR[LPDWHO\PLOOLRQQHWUHQWDEOHVTXDUHIHHWRIVWRUDJHVSDFH DWD
WRWDO FRVW RI DSSUR[LPDWHO\ PLOOLRQ $ WRWDO RI PLOOLRQ LQ FRVWV ZHUH LQFXUUHG WKURXJK
'HFHPEHU ZLWK UHVSHFW WR WKHVH SURMHFWV ZLWK WKH UHPDLQLQJ FRVWV H[SHFWHG WR EH LQFXUUHG
SULPDULO\LQ:HH[SHFWWRFRQWLQXHWRVHHNDGGLWLRQDOGHYHORSPHQWSURMHFWVKRZHYHUWKHOHYHORI
IXWXUHGHYHORSPHQWPD\EHOLPLWHGGXHWRYDULRXVFRQVWUDLQWVVXFKDVGLIILFXOW\LQILQGLQJDYDLODEOHVLWHV
WKDWPHHWRXUULVNDGMXVWHG\LHOGH[SHFWDWLRQVDVZHOODVFKDOOHQJHVLQREWDLQLQJEXLOGLQJSHUPLWVIRUVHOI
VWRUDJHDFWLYLWLHVLQFHUWDLQPXQLFLSDOLWLHV
:H EHOLHYH WKDW RXU UHDO HVWDWH GHYHORSPHQW DFWLYLWLHV DUH EHQHILFLDO WR RXU EXVLQHVV RSHUDWLRQV
RYHU WKH ORQJ UXQ +RZHYHU LQ WKH VKRUWUXQ GXH WRWKH WKUHH WR IRXU \HDU SHULRG WKDW LWWDNHV WR ILOO XS
QHZO\ GHYHORSHG VWRUDJH VSDFH DQG DFKLHYH D VWDELOL]HG OHYHO RI FDVK IORZV RXU HDUQLQJV DUH GLOXWHG
EHFDXVHHDUQLQJVIURPWKRVHQHZO\GHYHORSHGDQGH[SDQGHGIDFLOLWLHVDUHOHVVWKDQWKHFRVWRIWKHFDSLWDO
UHTXLUHGLQRUGHUWRIXQGWKHGHYHORSPHQWFRVW:HEHOLHYHWKDWWKLVGLOXWLRQZLOOJURZLQDQGEH\RQG
GXHWRWKHLQFUHDVLQJOHYHORIGHYHORSPHQWDQGXQVWDELOL]HGSURSHUWLHVLQRXUSRUWIROLR
:HDOVRKDYHHTXLW\LQYHVWPHQWVLQ6KXUJDUG(XURSHDQG36%XVLQHVV3DUNV,QF³36%´:H
PD\PDNHIXUWKHULQYHVWPHQWVLQWKHVHFRPSDQLHV
$VRI'HFHPEHUZHKDYHFDSLWDOUHVRXUFHVZHOOLQH[FHVVRIRXUFXUUHQWSODQQHGFDSLWDO
QHHGVRYHUWKHQH[W\HDUWRWDOLQJPLOOLRQ2XUFDSLWDOUHVRXUFHVLQFOXGHLPLOOLRQRIFDVKDVRI
'HFHPEHULLPLOOLRQRIDYDLODEOHERUURZLQJFDSDFLW\RQRXUUHYROYLQJOLQHRIFUHGLWLLL
PLOOLRQ WR PLOOLRQ RI H[SHFWHG UHWDLQHG RSHUDWLQJ FDVK IORZ IRU WKH QH[W WZHOYH PRQWKV DQG
LY PLOOLRQ RI QHW SURFHHGV IURP WKH LVVXDQFH RI SUHIHUUHG VHFXULWLHV LQ -DQXDU\ 5HWDLQHG
RSHUDWLQJ FDVK IORZ UHSUHVHQWV RXU H[SHFWHG FDVK IORZ SURYLGHG E\ RSHUDWLQJ DFWLYLWLHV OHVV VKDUHKROGHU
GLVWULEXWLRQVDQGFDSLWDOH[SHQGLWXUHVWRPDLQWDLQUHDOHVWDWHIDFLOLWLHV2XUSODQQHGFDSLWDOQHHGVFRQVLVWRI
L PLOOLRQ RI UHPDLQLQJ VSHQG RQ RXU FXUUHQW GHYHORSPHQW SLSHOLQH LL PLOOLRQ LQ SURSHUW\
DFTXLVLWLRQVFXUUHQWO\XQGHUFRQWUDFWDQGLLLPLOOLRQLQSULQFLSDOUHSD\PHQWV RQ H[LVWLQJGHEW 2XU
FDSLWDOQHHGVPD\LQFUHDVHVLJQLILFDQWO\RYHUWKHFRXUVHRIDWRXURSWLRQZHPD\UHGHHPSUHIHUUHG