Public Storage 2015 Annual Report Download - page 59

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Liquidity and Capital Resources
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Financial Strategy:  $V D 5(,7 ZH JHQHUDOO\ GLVWULEXWH  RI RXU WD[DEOH LQFRPHWRRXU
VKDUHKROGHUVZKLFKUHODWLYHWRDWD[DEOH&FRUSRUDWLRQOLPLWVWKHDPRXQWRIFDVKIORZIURPRSHUDWLRQVWKDW
ZHFDQUHWDLQIRULQYHVWPHQWV$VDUHVXOWLQRUGHUWRJURZRXUDVVHWEDVHDFFHVVWRFDSLWDOLVLPSRUWDQW
+LVWRULFDOO\ ZH KDYH SULPDULO\ ILQDQFHG RXU FDVK LQYHVWPHQW DFWLYLWLHV ZLWK UHWDLQHG RSHUDWLQJ FDVK IORZ
DQG QHW SURFHHGV IURP WKH LVVXDQFH RI SUHIHUUHG VHFXULWLHV  'XH WR PDUNHW LQHIILFLHQF\ YRODWLOLW\ DQG
OLPLWHGFDSLWDOPDUNHWEUHDGWKIRUSUHIHUUHGVHFXULWLHVDVZHOODVRXULQFUHDVHGVFDOHDQGSRWHQWLDOFDSLWDO
QHHGV ZH DUH VHHNLQJ WR GLYHUVLI\ RXU FDSLWDO VRXUFHV E\ HVWDEOLVKLQJ PHGLXP DQG ORQJWHUP GHEW DV DQ
DOWHUQDWLYH VHH ³'HEW LVVXDQFH´ EHORZ  2YHU WKH ORQJWHUP ZH H[SHFW WR FRQWLQXH WR IXQG RXU FDSLWDO
UHTXLUHPHQWVZLWKUHWDLQHGRSHUDWLQJFDVKIORZWKHLVVXDQFHRIPHGLXPRUORQJWHUPGHEWDQGSURFHHGV
IURPWKHLVVXDQFHRIFRPPRQDQGSUHIHUUHGVHFXULWLHV
Common and preferred equity: :H KDYH KLVWRULFDOO\ EHHQ DEOH WR UDLVH FDSLWDO WKURXJK WKH
LVVXDQFHRISUHIHUUHGVHFXULWLHVDWDQDWWUDFWLYHFRVWRIFDSLWDOZLWKUDWHVEHWZHHQDQGVLQFH
UHODWLYHWRWKHLVVXDQFHRIRXUFRPPRQVKDUHVDQGDVDUHVXOWLVVXDQFHVRIFRPPRQVKDUHVKDYHEHHQ
PLQLPDO)XWXUHLVVXDQFHVRIFRPPRQVKDUHVZLOOGHSHQGXSRQWKHUHODWLYHFRVWRIFDSLWDOIRUWKHLVVXDQFH
RIRXUFRPPRQHTXLW\
:HFRQWLQXH WRYLHZSUHIHUUHGHTXLW\ DV DQLPSRUWDQWVRXUFHRIFDSLWDO RYHU WKH ORQJWHUP2Q
-DQXDU\   ZH LVVXHG  PLOOLRQ GHSRVLWDU\ VKDUHV HDFK UHSUHVHQWLQJ  RI D VKDUH RI RXU
 6HULHV % 3UHIHUUHG 6KDUHV DW DQ LVVXDQFH SULFH RI  SHU GHSRVLWDU\ VKDUH IRU D WRWDO RI
PLOOLRQLQJURVVSURFHHGVDQGZHLQFXUUHGPLOOLRQLQLVVXDQFHFRVWV
2XUFUHGLWUDWLQJVRQHDFKRIRXUVHULHVRISUHIHUUHGVKDUHVDUH³$´E\0RRG\¶VDQG³%%%´E\
6WDQGDUG3RRU¶V,QUHFHQW\HDUVZHKDYHEHHQRQHRIWKHODUJHVWDQGPRVWIUHTXHQWLVVXHUVRISUHIHUUHG
HTXLW\LQWKH86
Debt issuance:$VQRWHGDERYHZHDUHVHHNLQJWRSRVLWLRQRXUVHOYHVWRLVVXHPHGLXP DQG ORQJ
WHUPGHEWLQRUGHUWRGLYHUVLI\RXUFDSLWDOVRXUFHV2Q1RYHPEHUZHLVVXHGWKH6HQLRU1RWHVWRDQ
LQVWLWXWLRQDOLQYHVWRUDQGZHH[SHFWWRVHHNWRLVVXHDGGLWLRQDOPHGLXPRUORQJWHUPGHEWLQLQRUGHU
WRHVWDEOLVKDSUHVHQFHLQWKHFDSLWDOPDUNHWVIRURXUGHEWVHFXULWLHV
1RWZLWKVWDQGLQJ RXU H[SHFWDWLRQ RI LQFUHDVLQJ GHEW DV D FDSLWDO VRXUFH ZH H[SHFW WR UHPDLQ
FRQVHUYDWLYHO\ FDSLWDOL]HG DQG QRW VXEMHFW RXUVHOYHV WR VLJQLILFDQW UHILQDQFLQJ ULVN IURP WKH LVVXDQFH RI
GHEW
:H KDYH EURDG SRZHUV WR ERUURZ LQ IXUWKHUDQFH RI RXU REMHFWLYHV ZLWKRXW D YRWH RI RXU
VKDUHKROGHUV7KHVHSRZHUVDUHVXEMHFWWRDOLPLWDWLRQRQXQVHFXUHGERUURZLQJVLQRXU%\ODZVGHVFULEHGLQ
³/LPLWDWLRQVRQ'HEW´EHORZ2XUVHQLRUGHEWKDVDQ³$´FUHGLWUDWLQJE\6WDQGDUGDQG3RRU¶VDQG³$´
E\0RRG\¶V:HEHOLHYHWKLVKLJKUDWLQJFRPELQHGZLWKRXUORZOHYHORIGHEWFRXOGDOORZXVWRLVVXHD
VLJQLILFDQWDPRXQWRIXQVHFXUHGGHEWDWORZHULQWHUHVWUDWHVWKDQWKHFRXSRQUDWHVRQSUHIHUUHGVHFXULWLHVLI
ZHFKRVHWR
Liquidity and Capital Resource Analysis::HEHOLHYHWKDWRXUQHWFDVKSURYLGHGE\RXURSHUDWLQJ
DFWLYLWLHV ZLOO FRQWLQXH WR EH VXIILFLHQW WR HQDEOH XV WR PHHW RXU RQJRLQJ UHTXLUHPHQWV IRU RSHUDWLQJ
H[SHQVHVFDSLWDOLPSURYHPHQWVDQGGLVWULEXWLRQVWRRXUVKDUHKROGHUVIRUWKHIRUHVHHDEOHIXWXUH
$VRI'HFHPEHUZHKDYHFDSLWDOUHVRXUFHVZHOOLQH[FHVVRIRXUFXUUHQWSODQQHGFDSLWDO
QHHGVRYHUWKHQH[W\HDUWRWDOLQJPLOOLRQ2XUFDSLWDOUHVRXUFHVLQFOXGHLPLOOLRQRIFDVKDVRI
'HFHPEHULLPLOOLRQRIDYDLODEOHERUURZLQJFDSDFLW\RQRXUUHYROYLQJOLQHRIFUHGLWLLL
 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
GLVWULEXWLRQVDQGFDSLWDOH[SHQGLWXUHVWRPDLQWDLQUHDOHVWDWHIDFLOLWLHV2XUSODQQHGFDSLWDOQHHGVFRQVLVWRI