Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Public Storage | |
Entity Central Index Key | 1,393,311 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 173,155,582 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 35,668 | $ 187,712 |
Real estate facilities, at cost: | ||
Land | 3,533,393 | 3,476,883 |
Buildings | 9,559,470 | 9,386,352 |
Real estate facilities, gross | 13,092,863 | 12,863,235 |
Accumulated depreciation | (4,767,104) | (4,482,520) |
Real estate facilities, net | 8,325,759 | 8,380,715 |
Construction in process | 174,622 | 104,573 |
Total real estate facilities | 8,500,381 | 8,485,288 |
Investments in unconsolidated real estate entities | 806,204 | 813,740 |
Goodwill and other intangible assets, net | 212,976 | 228,632 |
Other assets | 99,586 | 103,304 |
Total assets | 9,654,815 | 9,818,676 |
LIABILITIES AND EQUITY | ||
Notes payable | 55,725 | 64,364 |
Preferred shares called for redemption (Note 8) | 125,000 | |
Accrued and other liabilities | 295,482 | 247,141 |
Total liabilities | $ 476,207 | $ 311,505 |
Commitments and contingencies (Note 12) | ||
Public Storage shareholders' equity: | ||
Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 162,200 shares issued (in series) and outstanding, (173,000 at December 2014), at liquidation preference | $ 4,055,000 | $ 4,325,000 |
Common Shares, $0.10 par value, 650,000,000 shares authorized, 172,853,700 shares issued and outstanding (172,445,554 shares at December 31, 2014) | 17,286 | 17,245 |
Paid-in capital | 5,591,664 | 5,561,530 |
Accumulated deficit | (444,395) | (374,823) |
Accumulated other comprehensive loss | (67,437) | (48,156) |
Total Public Storage shareholders’ equity | 9,152,118 | 9,480,796 |
Noncontrolling interests | 26,490 | 26,375 |
Total equity | 9,178,608 | 9,507,171 |
Total liabilities and equity | $ 9,654,815 | $ 9,818,676 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Cumulative Preferred Shares Of Beneficial Interest | ||
Par value | $ 0.01 | $ 0.01 |
Shares authorized | 100,000,000 | 100,000,000 |
Shares issued (in series) | 162,200 | 173,000 |
Shares outstanding | 162,200 | 173,000 |
Common Shares Of Beneficial Interest | ||
Par value | $ 0.10 | $ 0.10 |
Shares authorized | 650,000,000 | 650,000,000 |
Shares issued | 172,853,700 | 172,445,554 |
Shares outstanding | 172,853,700 | 172,445,554 |
Statements Of Income
Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Self-storage facilities | $ 580,976 | $ 534,271 | $ 1,662,641 | $ 1,520,661 |
Ancillary operations | 37,896 | 32,819 | 109,725 | 94,954 |
Total revenues | 618,872 | 567,090 | 1,772,366 | 1,615,615 |
Expenses: | ||||
Self-storage cost of operations | 152,010 | 146,979 | 461,078 | 445,474 |
Ancillary cost of operations | 12,676 | 11,589 | 36,715 | 35,473 |
Depreciation and amortization | 106,082 | 111,077 | 319,701 | 326,541 |
General and administrative | 23,573 | 17,874 | 68,721 | 52,240 |
Operating expenses | 294,341 | 287,519 | 886,215 | 859,728 |
Operating income | 324,531 | 279,571 | 886,151 | 755,887 |
Interest and other income | 3,659 | 3,830 | 11,509 | 13,674 |
Interest expense | (1,238) | (6,781) | ||
Equity in earnings of unconsolidated real estate entities | 12,603 | 14,566 | 36,267 | 43,305 |
Foreign currency exchange loss | (3,012) | (7,035) | ||
Gain on real estate sales | 343 | 1,260 | 18,503 | 2,479 |
Net income | 341,136 | 294,977 | 952,430 | 801,529 |
Allocation to noncontrolling interests | (1,568) | (1,518) | (4,676) | (4,040) |
Net income allocable to Public Storage shareholders | 339,568 | 293,459 | 947,754 | 797,489 |
Allocation of net income to: | ||||
Preferred shareholders | (61,062) | (60,763) | (186,066) | (170,942) |
Preferred shareholders - redemptions (Note 8) | (4,113) | (8,897) | ||
Restricted share units | (885) | (881) | (2,744) | (2,328) |
Net income allocated to common shareholders | $ 273,508 | $ 231,815 | $ 750,047 | $ 624,219 |
Net income per common share - basic | ||||
Basic | $ 1.58 | $ 1.34 | $ 4.34 | $ 3.63 |
Net income per common share - diluted | ||||
Diluted | $ 1.58 | $ 1.34 | $ 4.32 | $ 3.61 |
Basic weighted average common shares outstanding | 172,771 | 172,378 | 172,641 | 172,190 |
Diluted weighted average common shares outstanding | 173,529 | 173,304 | 173,428 | 173,098 |
Cash dividends declared per common share | $ 1.70 | $ 1.40 | $ 4.80 | $ 4.20 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Comprehensive Income [Abstract] | ||||
Net income | $ 341,136 | $ 294,977 | $ 952,430 | $ 801,529 |
Other comprehensive income (loss): | ||||
Aggregate foreign currency exchange loss | (5,914) | (26,339) | (19,281) | (34,430) |
Adjust for foreign currency exchange loss, included in net income | 3,012 | 7,035 | ||
Other comprehensive loss: | (5,914) | (23,327) | (19,281) | (27,395) |
Total comprehensive income | 335,222 | 271,650 | 933,149 | 774,134 |
Allocation to noncontrolling interests | (1,568) | (1,518) | (4,676) | (4,040) |
Comprehensive income allocable to Public Storage shareholders | $ 333,654 | $ 270,132 | $ 928,473 | $ 770,094 |
Statement Of Equity
Statement Of Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Cumulative Preferred Shares [Member] | Common Shares [Member] | Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total Public Storage Shareholders' Equity [Member] | Noncontrolling Interests [Member] | Total |
Balances at Dec. 31, 2014 | $ 4,325,000 | $ 17,245 | $ 5,561,530 | $ (374,823) | $ (48,156) | $ 9,480,796 | $ 26,375 | $ 9,507,171 |
Redemption of 10,800 preferred shares (Note 8) | (270,000) | (270,000) | (270,000) | |||||
Issuance of common shares in connection with share-based compensation (408,146 shares) (Note 10) | 41 | 25,873 | 25,914 | 25,914 | ||||
Cash paid in lieu of common shares, net of share-based compensation expense (Note 10) | 9,646 | 9,646 | 9,646 | |||||
Acquisition of noncontrolling interests | (5,385) | (5,385) | (58) | (5,443) | ||||
Net income allocated to: | ||||||||
Contributions by noncontrolling interests | 984 | 984 | ||||||
Net income | 952,430 | 952,430 | 952,430 | |||||
Net income allocated to noncontrolling interests | (4,676) | (4,676) | 4,676 | |||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (186,066) | (186,066) | (186,066) | |||||
Noncontrolling interests | (5,487) | (5,487) | ||||||
Common shares and restricted share units ($4.80 per share) | (831,260) | (831,260) | (831,260) | |||||
Other comprehensive loss (Note 2) | (19,281) | (19,281) | (19,281) | |||||
Balances at Sep. 30, 2015 | $ 4,055,000 | $ 17,286 | $ 5,591,664 | $ (444,395) | $ (67,437) | $ 9,152,118 | $ 26,490 | $ 9,178,608 |
Statement Of Equity (Parentheti
Statement Of Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Statement Of Equity [Abstract] | |
Redemption of preferred shares, shares | 10,800 |
Issuance of common shares in connection with share-based compensation, shares | 408,146 |
Common shares, per share distribution | $ / shares | $ 4.80 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 952,430 | $ 801,529 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on real estate sales | (18,503) | (2,479) |
Depreciation and amortization | 319,701 | 326,541 |
Distributions received from unconsolidated real estate entities less than equity in earnings | (10,217) | (7,852) |
Foreign currency exchange loss | 7,035 | |
Other | 54,658 | 28,375 |
Total adjustments | 345,639 | 351,620 |
Net cash provided by operating activities | 1,298,069 | 1,153,149 |
Cash flows from investing activities: | ||
Capital expenditures to maintain real estate facilities | (52,939) | (65,600) |
Construction in process | (159,527) | (76,135) |
Acquisition of real estate facilities and intangible assets | (104,915) | (271,228) |
Proceeds from sales of real estate facilities | 15,013 | 2,581 |
Disposition of portion of loan receivable from Shurgard Europe | 216,217 | |
Repayments of loans receivable from Shurgard Europe | 204,947 | |
Other | 16,282 | (1,000) |
Net cash (used in) provided by investing activities | (286,086) | 9,782 |
Cash flows from financing activities: | ||
Repayments on bank credit facility | (50,100) | |
Repayments on term loan | (700,000) | |
Repayments on notes payable | (16,741) | (21,994) |
Issuance of preferred shares | 555,106 | |
Issuance of common shares | 25,914 | 35,910 |
Redemption of preferred shares | (145,000) | |
Acquisition of noncontrolling interests | (5,443) | |
Contributions by noncontrolling interests | (984) | |
Distributions paid to Public Storage shareholders | (1,017,326) | (896,670) |
Distributions paid to noncontrolling interests | (5,487) | (5,220) |
Net cash used in financing activities | (1,163,099) | (1,082,968) |
Net (decrease) increase in cash and cash equivalents | (151,116) | 79,963 |
Net effect of foreign exchange translation on cash and cash equivalents | (928) | (880) |
Cash and cash equivalents at the beginning of the period | 187,712 | 19,169 |
Cash and cash equivalents at the end of the period | 35,668 | 98,252 |
Foreign currency translation adjustment: | ||
Real estate facilities, net of accumulated depreciation | 691 | 165 |
Investments in unconsolidated real estate entities | 17,662 | 26,410 |
Loan receivable from Shurgard Europe | 6,975 | |
Accumulated other comprehensive loss | (19,281) | (34,430) |
Preferred shares called for redemption and reclassified to liabilities | 125,000 | |
Preferred shares called for redemption and reclassified from equity | (125,000) | |
Real estate acquired in exchange for assumption of note payable | (8,624) | (5,097) |
Note payable assumed in connection with acquisition of real estate | 8,624 | 5,097 |
Accrued construction costs and capital expenditures: | ||
Capital expenditures to maintain real estate facilites | 64 | 2,001 |
Construction in process | (316) | (3,892) |
Accrued and other liabilities | $ 252 | $ 1,891 |
Description Of The Business
Description Of The Business | 9 Months Ended |
Sep. 30, 2015 | |
Description Of The Business [Abstract] | |
Description Of The Business | 1. Description of the Business Public Storage (referred to herein as “the Company”, “we”, “us”, or “our”), a Maryland real estate investment trust, was organized in 1980. Our principal business activities include the ownership and operation of self-storage facilities which offer storage spaces for lease, generally on a month-to-month basis, for personal and business use , ancillary activities such as merchandise sales and tenant reinsurance to the tenants at our self-storage facilities, as well as the acquisition and development of additional self-storage space . At September 30, 20 15 , we have direct and indirect equity interests in 2,266 self-storage facilities (with approximately 147 million net rentable square feet) located in 38 states in the United States (“U.S.”) operating under the “Public Storage” name. We also own one self-storage facility in London, England , and we have a 49 % interest in Shurgard Europe, which owns 216 self -storage facilities (with approximately 11 million net rentable square feet) located in seven Western European countries, all operating under the “Shurgard” name. We also have direct and indirect equity interests in approximately 29 million net rentable square feet of commercial space located in 10 states in the U.S. primarily owned and operated by PS Business Parks, Inc. (“PSB”) under the “PS Business Parks” name. At September 3 0 , 20 15 , we have an approximate 42 % common equity interest in PSB. Disclosures of the number and square footage of facilities , as well as the number and coverage of tenant reinsurance policies are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the Public Company Accounting Oversight Board ( U.S. ). |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as defined in the Financial Accounting Standards Board (“FASB") Accounting Standards Codification (the “Codification”), including guidance with respect to interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. While they do not include all of the disclosures required by GAAP for complete financial statements, we believe that we have included all adjustments (consisting of normal and recurring adjustments) necessary for a fair presentation. Operating results for the three and nine months ended September 30 , 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 due to seasonality and other factors. These interim financial statements should be read together with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Certain amounts previously reported in our September 30, 2014 financial statements have been reclassified to conform to the September 30, 2015 presentation . We reclassified the revenue s and cost of operations, net for our wholly-owned commercial facilities and property management operations as interest and other income ( an aggregate of approximately $3.1 million and $9.5 million for the three and nine months ended September 30, 2014 , respectively), rather than as ancillary revenues and ancillary cost of operations . We also revised our reportable segment presentation in Note 11, including renaming (i) our “Domestic Self-Storage” segment to “Self-Storage Operations,” (ii) our “European Self-Storage” segment to “Investment in Shurgard Europe,” (iii) our “Commercial” segment to “Investment in PSB,” removing our commercial facilities’ operations from this segment, and (iv) presenting a new segment called “Ancillary Operations” reflecting the sale of merchandise at our self-storage facilities and reinsurance of policies covering losses to goods stored by our tenants at our facilities. Each of these reclassifications reflects changes to enhance the usefulness of this information based upon the relative significance of these activities to our aggregate operating results . Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or where the equity holders as a group do not have a controlling financial interest. We have no investments or other involvement in any VIEs. We consolidate all entities that we control (these entities, for the period in which the reference applies, are referred to collectively as the “Subsidiaries”), and we eliminate intercompany transactions and balances. We account for our investments in entities that we have significant influence over, but do not control, using the equity method of accounting (these entities, for the periods in which the reference applies, are referred to collectively as the “Unconsolidated Real Estate Entities”), eliminating intra-entity profits and losses and amortizing any differences between the cost of our investment and the underlying equity in net assets against equity in earnings as if the Unconsolidated Real Estate Entity were a consolidated subsidiary. When we obtain control of an Unconsolidated Real Estate Entity, we commence consolidating the entity and record a gain representing the differential between the book value and fair value of our preexisting equity interest. All changes in consolidation status are reflected prospectively. When we are general partner, we control the partnership unless the third-party limited partners can dissolve the partnership or otherwise remove us as general partner without cause, or if the limited partners have the right to participate in substantive decisions of the partnership. Collectively, at September 30 , 2015, the Company and the Subsidiaries own 2,254 self-storage facilities in the U .S., one self -storage facility in London, England and four commercial facilities in the U.S. At September 30, 2015, the Unconsolidated Real Estate Entities are comprised of PSB, Shurgard Europe, as well as limited partnerships that own an aggregate of 12 self-storage facilities in the U.S. (these limited partnerships, for the periods in which the reference applies, are referred to as the “Other Investments”). Use of Estimates The financial statements and accompanying notes reflect our estimates and assumptions. Actual results could differ from those estimates and assumptions. Income Taxes We have elected to be treated as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code of 1986, as amended (the “Code”) . As a REIT, we do not incur federal income tax if we distribute 100 % of our REIT taxable income (generally, net rents and gains from real property, dividends, and interest) each year, and if we meet certain organizational and operational rules. We believe we will meet these REIT requirements in 2015, and that we have met them for all other periods presented herein. Accordingly, we have recorded no federal income tax expense related to our REIT taxable income. Our merchandise and tenant reinsurance operations are subject to corporate income tax and such taxes are included in ancillary cost of operations. We also incur income and other taxes in certain states, which are included in general and administrative expense. We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of September 30 , 2015, we had no tax benefits that were not recognized. Real Estate Facilities Real estate facilities are recorded at cost. We capitalize all costs incurred to develop, construct, renovate and improve facilities , including interest and property taxes incurred during the construction period. We expense internal and external transaction costs associated with acquisitions or dispositions of real estate, as well as repairs and maintenance costs, as incurred. We depreciate buildings and improvements on a straight-line basis over estimated useful lives ranging generally between 5 to 25 years. We allocate the net acquisition cost of acquired operating self-storage facilities to the underlying land, buildings, identified intangible assets, and any noncontrolling interests that remain outstanding based upon their respective individual estimated fair values. Any difference between the net acquisition cost and the estimated fair value of the net tangible and intangible assets acquired is recorded as goodwill. Other Assets Other assets primarily consist of rents receivable from our tenants, prepaid expenses and restricted cash. Accrued and Other Liabilities Accrued and other liabilities consist primarily of rents prepaid by our tenants, trade payables, property tax accruals, accrued payroll, accrued tenant reinsurance losses, and contingent loss accruals when probable and estimable. We disclose the nature of significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure. Cash Equivalents, Marketable Securities and Other Financial Instruments Cash equivalents represent highly liquid financial instruments such as money market funds with daily liquidity or short-term commercial paper or treasury securities maturing within three months of acquisition. Cash and cash equivalents which are restricted from general corporate use are included in other assets. Commercial paper not maturing within three months of acquisition, which we intend and have the capacity to hold until maturity, are included in marketable securities and accounted for using the effective interest method. Transfers of financial assets are recorded as sales when the asset is put presumptively beyond our and our creditors’ reach, there is no impediment to the transferee’s right to pledge or exchange the asset, we have surrendered effective control of the asset, we have no actual or effective right or requirement to repurchase the asset and, in the case of a transfer of a participating interest, there is no impediment to our right to pledge or exchange the participating interest we retain. Fair Value Accounting As used herein, the term “fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. We prioritize the inputs used in measuring fair value based upon a three-tier hierarchy described in Codification Section 820-10-35. Our estimates of fair value involve considerable judg ment and are not necessarily indicative of the amounts that could be realized in current market exchanges . We believe that, during all periods presented, the carrying values approximate the estimated fair values of our cash and cash equivalents , other assets, and accrued and other liabilities, based upon our evaluation of the underlying characteristics, market data, and short maturity of these financial instruments, which involved considerable judgment. The characteristics of these financial instruments, market data, and other comparative metrics utilized in determining these fair values are “Level 2” inputs as the term is defined in Codification Section 820-10-35-47. We estimate fair values in recording our business combinations, to evaluate real estate, investments in unconsolidated real estate entities, goodwill, and other intangible assets for impairment, and to determine the fair values of notes payable and receivable. In estimating these fair values, we consider significant unobservable inputs such as market prices of land, market capitalization rates and earnings multiples for real estate facilities, projected levels of earnings, costs of construction, functional depreciation, and market interest rates for debt securities with a similar time to maturity and credit quality, which are “Level 3” inputs as the term is defined in Codification Section 820-10-35-52. Currency and Credit Risk Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, certain portions of other assets including re nts receivable from our tenants and restricted cash. Cash equivalents we invest in are either money market funds with a rating of at least AAA by Standard and Poor’s, commercial paper that is rated A1 by Standard and Poor’s or deposits with highly rated commercial banks. At September 30 , 2015, due primarily to our investment in Shurgard Europe, our operating results and financial position are affected by fluctuations in currency exchange rates between the Euro, and to a lesser extent, other European currencies, against the U.S. Dollar. Goodwill and Other Intangible Assets Intangible assets are comprised of goodwill, the “Shurgard” trade name, acquired customers in place, and leasehold interests in land. Goodwill totaled $ 174.6 million at September 30 , 2015 and December 31, 2014. The “Shurgard” trade name, which is used by Shurgard Europe pursuant to a fee-based licensing agreement, has a book value of $ 18.8 million at September 30 , 2015 and December 31, 2014. Goodwill and the “Shurgard” trade name have indefinite lives and are not amortized. Acquired customers in place and leasehold interests in land are finite-lived and are amortized relative to the benefit of the customers in place or the benefit to land lease expense to each period. At September 30, 2015, these intangibles had a net book value of $19.5 million ($ 35.2 million at December 31, 2014). Accumulated amortization totaled $74.2 million at September 30 , 2015 ($ 69.3 million at December 31, 2014), and amortization expense of $21.3 million and $37.4 million was recorded in the nine months ended September 30, 2015 and 2014, respectively. The estimated f uture amortization expense for our finite-lived intangible assets at September 30 , 2015 is approximately $4.2 million in the remainder of 2015, $7.5 million in 2016 and $7.8 million thereafter. During the nine months ended September 30, 2015, intangibles were increased $5.7 million in connection with the acquisition of self-storage facilities (Note 3). Evaluation of Asset Impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. We evaluate our investments in unconsolidated real estate entities for impairment on a quarterly basis. We record an impairment charge to the extent the carrying amount exceeds estimated fair value, when we believe any such shortfall is other than temporary. We evaluate goodwill for impairment annually and whenever relevant events, circumstances and other related factors indicate that fair value of the related reporting unit may be less than the carrying amount. If we determine that the fair value of the reporting unit exceeds the aggregate carrying amount, no impairment charge is recorded. Otherwise, we record an impairment charge to the extent the carrying amount of the goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value. We evaluate the “Shurgard” trade name for impairment at least annually and whenever relevant events, circumstances and other related factors indicate that the fair value is less than the carrying amount. When we conclude that it is likely that the asset is not impaired, we do not record an impairment charge and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value. No impairments were recorded in any of our evaluations for any period presented herein. Revenue and Expense Recognition Revenues from self-storage facilities, which is primarily composed of r ental income earned pursuant to month-to-month leases for storage space, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period , which is generally one month . Ancillary revenues and interest and other income are recognized when earned. Equity in earnings of unconsolidated real estate entities represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entities. We accrue for property tax expense based upon actual amounts billed and, in some circumstances, estimates and historical trends when bills or assessments have not been received from the taxing authorities or such bills and assessments are in dispute. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations, general and administrative expense, interest expense, as well as television and other advertising expenditures are expensed as incurred. Foreign Currency Exchange Translation The local currency (primarily the Euro) is the functional currency for our interests in foreign operations. The related balance sheet amounts are translated into U.S. Dollars at the exchange rates at the respective financial statement date, while amounts on our statements of income are translated at the average exchange rates during the respective period. When financial instruments denominated in a currency other than the U.S. Dollar are expected to be settled in cash in the foreseeable future, the impact of changes in the U.S. Dollar equivalent are reflected in current earnings. The Euro was translated at exchange rates of approximately 1.124 U.S. Dollars per Euro at September 30 , 2015 ( 1.216 at December 31, 2014), and average exchange rates of 1.112 and 1.326 for the three months ended September 30 , 2015 and 2014, respectively , and average exchange rates of 1.115 and 1.356 for the nine months ended September 30 , 2015 and 2014, respectively. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in equity as a component of accumulated other comprehensive income (loss). Comprehensive Income Total comprehensive income represents net income, adjusted for changes in other comprehensive income (loss) for the applicable period. The aggregate foreign currency exchange gains and losses reflected on our statements of comprehensive income are comprised primarily of foreign currency exchange gains and losses on our investment in Shurgard Europe. Recent Accounting Pronouncements and Guidance In May 2014, the FASB issued ASU No. 2014-09 , which requir es revenue to be based upon the consideration expected from customers for promised go ods or services . The new standard , effective on January 1, 2018, permits either the retrospective or cumulative effects transition method and allows for early adoption on January 1, 2017 . We do not believe this standard will have a material impact on our results of operations or financial condition. In February 2015, the FASB issued ASU No. 2015-02, which modifies i) the criteria for and the analysis of the identification of consolidation of variable interest entities, particularly when fee arrangements and related party relationships are involved, and ii) the consolidation analysis for partnerships . The standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period , with early adoption permitted. We have not yet determined whether this standard will have a material effect on our results of operations or financial condition. Net Income per Common Share Net income is allocated to (i) noncontrolling interests based upon their share of the net income of the Subsidiaries, (ii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds ( in accordance with the provisions of Codification Section 260-10-S99-2, an “EITF D-42 allocation”), and (iii) the remaining net income allocated to each of our equity securities based upon the dividends declared or accumulated during the period, combined with participation rights in undistributed earnings. Basic net income per share is computed using the weighted average common shares outstanding. Diluted net income per share is computed using the weighted average common shares outstanding, adjusted for the impact, if dilutive, of stock options outstanding (Note 10). The following table reflects net income allocable to common shareholders and the weighted average common shares and equivalents outstanding, as used in our calculations of basic and diluted net income per share: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Amounts in thousands) Net income allocable to common shareholders $ $ $ $ Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding Net effect of dilutive stock options - based on treasury stock method Diluted weighted average common shares outstanding |
Real Estate Facilities
Real Estate Facilities | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Facilities [Abstract] | |
Real Estate Facilities | 3 . Real Estate Facilities Activity in real estate facilities during the nine months ended September 30, 2015 is as follows : Nine Months Ended September 30, 2015 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ Capital expenditures to maintain real estate facilities Acquisitions Dispositions Newly developed facilities opened for operation Impact of foreign exchange rate changes Ending balance Accumulated depreciation: Beginning balance Depreciation expense Dispositions Impact of foreign exchange rate changes Ending balance Construction in process: Beginning balance Current development Newly developed facilities opened for operation Ending balance Total real estate facilities at September 30, 2015 $ During the nine months ended September 30, 2015, we acquired ten self-storage facilities (738,000 net rentable square feet) and the leasehold interest in the land of one of our existing self-storage facilities, for a total cost of $113.5 million, consisting of $104.9 million in cash and the assumption of $8.6 million in mortgage debt. Approximately $5.7 million of the total cost was allocated to intangible assets. We completed expansion and development activities during the nine months ended September 30, 2015, adding 897,000 net rentable square feet of self-storage space, at an aggregate cost of $89.8 million. Construction in process at September 30, 2015 consists of projects to develop new self-storage facilities and expand existing self-storage facilities, which would add a total of 4.0 million net rentable square feet of storage space, for an aggregate estimated cost of approximately $506.6 million. During the nine months ended September 30, 2015, we sold one commercial facility and two self -storage facilities in connection with eminent domain proceedings, and recorded related gains on real estate sales totaling $18.5 million. |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Entities | 9 Months Ended |
Sep. 30, 2015 | |
Investments In Unconsolidated Real Estate Entities [Abstract] | |
Investments In Unconsolidated Real Estate Entities | 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 September 30, 2015 December 31, 2014 PSB $ $ Shurgard Europe Other Investments Total $ $ Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 PSB $ $ $ $ Shurgard Europe Other Investments Total $ $ $ $ During the nine months ended September 30, 2015 and 201 4, we received cash distributions from our investments in the Unconsolidated Real Estate Entities totaling $26.1 million and $35.5 million , respectively. At September 30, 2015, the cost of our investment in the Unconsolidated Real Estate Entities exceeds our pro rata share of the underlying equity by approximately $56 million ( $68 million at December 31, 2014). 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 $2.8 million and $1.4 million during the nine months ended September 30, 2015 and 2014, respectively. 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 September 30 , 201 5 and December 31, 2014, 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 basis into PSB common stock. Based upon the closing price at September 30 , 201 5 ($79.38 per share of PSB common stock), the shares and units we owned had a market value of approximately $1.1 billion. Included in equity in earnings of unconsolidated real estate entities is our $5.3 million and $10.4 million share of gains on sale of facilities recorded by PSB for the three and nine months ended September 30, 2015, respectively. During the three and nine months ended September 30, 2015, our equity in earnings of unconsolidated real estate entities was decreased by $1.0 million, representing our share of PSB’s EITF D-42 allocations of income associated with the redemption of preferred securities. The following table sets forth selected financial information of PSB . T he amounts represent all of PSB’s balances and not our pro-rata share. September 30, December 31, 2015 2014 (Amounts in thousands) Total assets (primarily real estate) $ $ Debt Preferred stock called for redemption - Other liabilities Equity: Preferred stock Common equity and LP units 2015 2014 (Amounts in thousands) For the nine months ended September 30, Total revenue $ $ Costs of operations Depreciation and amortization General and administrative Other items Gain on sale of facilities - Net income Allocations to preferred shareholders and restricted share unitholders Net income allocated to common shareholders and LP Unitholders $ $ 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 paid us interest on a shareholder loan until it was repaid in July 2014 (see Note 5). Changes in foreign currency exchange rates caused our investment in Shurgard Europe to decrease by approximately $17.7 million and $26.4 million during the nine months ended September 30, 2015 and 2014, respectively. The following table sets forth selected consolidated financial information of Shurgard Europe based upon all of Shurgard Europe’s balances for all periods, rather than our pro rata share. Such amounts are based upon our historical acquired book basis. September 30, December 31, 2015 2014 (Amounts in thousands) Total assets (primarily self-storage facilities) $ $ Total debt to third parties Other liabilities Equity Exchange rate of Euro to U.S. Dollar 2015 2014 (Amounts in thousands) For the nine months ended September 30, Self-storage and ancillary revenues $ $ Self-storage and ancillary cost of operations Depreciation and amortization General and administrative Interest expense on third party debt Trademark license fee payable to Public Storage Interest expense on shareholder loan - Costs of acquiring facilities and other, net Net income $ $ Average exchange rates of Euro to the U.S. Dollar As reflected in the table above, Shurgard Europe’s net income has been reduced by expenses it pays to its shareholders, including a trademark license fee and interest expense on the shareholder loan for periods in which the loan was outstanding. During the nine months ended September 30, 2015, Shurgard Europe incurred $9.9 million in acquisition costs associated with the acquisition of real estate facilities, which is included in “Other” in the table above. The following table set forth the calculation of our equity in earnings in Shurgard Europe: 2015 2014 (Amounts in thousands) For the nine months ended September 30, Calculation of equity in earnings of Shurgard Europe: Our 49% share of Shurgard Europe’s net income $ $ Adjustments: 49% of trademark license fees 49% of interest on shareholder loan - Total equity in earnings of Shurgard Europe $ $ As indicated in the table above, 49% of the trademark license fees and interest paid by Shurgard Europe to its shareholders is included in our equity in earnings of Shurgard Europe and any remaining amount paid to us is included in “interest and other income” on our income statements. See Note 5 for further information. |
Loans Receivable From Unconsoli
Loans Receivable From Unconsolidated Real Estate Entity | 9 Months Ended |
Sep. 30, 2015 | |
Loans Receivable From Unconsolidated Real Estate Entity [Abstract] | |
Loans Receivable From Unconsolidated Real Estate Entity | 5. Loan Receivable from Unconsolidated Real Estate Entity At December 31, 2013, we owned 100% of the shareholder loan due from Shurgard Europe, which had a balance of €311.0 million ($ 428.1 million) and bore interest at 9.0% per annum. On January 28, 2014, our joint venture partner in Shurgard Europe acquired a 51% interest in the loan at face value for €158.6 million ($ 216.2 million) in cash. In July 2014, Shurgard Europe fully repaid its €311.0 million shareholder loan, and accordingly, we received our 49% share of the loan totaling €152.4 million ($ 204.9 million). For the three and nine months ended September 30, 2014, we recorded interest income with respect to this loan of nil and approximately $1.5 million, respectively. |
Credit Facility, Term Loan And
Credit Facility, Term Loan And Notes Payable | 9 Months Ended |
Sep. 30, 2015 | |
Credit Facility, Term Loan And Notes Payable [Abstract] | |
Credit Facility, Term Loan And Notes Payable | 6. Credit Facility, Term Loan and Notes Payable On March 31, 2015, we entered into an amended revolving credit agreement (the “Credit Facility”), which expires on March 31, 2020. The aggregate limit with respect to borrowings and letters of credit was increased from $300 million to $500 million. Amounts drawn on the Credit Facility bear annual interest at rates ranging from LIBOR plus 0.850% to LIBOR plus 1.450% depending upon the ratio of our Total Indebtedness to Gross Asset Value (as defined in the Credit Facility) (LIBOR plus 0.850% at September 30, 2015). In addition, we are required to pay a quarterly facility fee ranging from 0.080% per annum to 0.250% per annum depending upon the ratio of our Total Indebtedness to our Gross Asset Value ( 0.080% per annum at September 30, 2015). At December 31, 2014, September 30, 2015 and November 4, 2015, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $14.9 million at September 30, 2015 and $13.9 million at December 31, 2014. The Credit Facility has various customary restrictive covenants, all of which we were in compliance with at September 30, 2015. On December 2, 2013, we borrowed $700 million from Wells Fargo under an unsecured term loan (the “Term Loan”), and we fully repaid the borrowings by September 30, 2014. We incurred origination costs of $1.9 million, which were amortized using the effective interest method through the date of extinguishment ( $0.4 million and $1.8 million for the three and nine months ended September 30, 2014, respectively). The carrying amounts of our notes payable at September 30, 2015 and December 31, 2014, totaled $55.7 million and $64.4 million, respectively, with unamortized premium totaling $0.3 million and $0.6 million, respectively. These notes were assumed in connection with acquisitions of real estate facilities and recorded at fair value with any premium or discount to the stated note balance amortized using the effective interest method. At September 30, 2015, the notes are secured by 32 real estate facilities with a net book value of approximately $151 million, have contractual interest rates between 2.9% and 7.1% , and mature between June 2016 and September 2028. During the nine months ended September 30, 2015, we assumed mortgage debt with an estimated fair value of $8.6 million and market rate of 4.3% (contractual balance of $8.4 million and contractual interest rate of 6.2%) in connection with the acquisition of two real estate facilities. At September 30 , 2015, approximate principal maturities of our notes payable are $0.6 million in the remainder of 2015, $29.0 million in 2016, $9.2 million in 2017, $11.1 million in 2018, $1.2 million in 2019 and $4.6 million thereafter. The weighted average effective interest rate of our notes payable at September 30, 2015 was 4.1 %. Cash paid for interest totaled $2.3 million and $8.0 million for the nine months ended September 30, 201 5 and 201 4 , respectively. Interest capi talized as real estate totaled $1.8 million and $0.8 million for the nine months ended September 30, 201 5 and 201 4, respectively . See “Subsequent Events” in Note 13 below for additional information regarding our debt. |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | 7. Noncontrolling Interests At September 30 , 2015, the noncontrolling interests represent (i) third-party equity interests in subsidiaries owning 13 operating self-storage facilities and seven self-storage facilities that are under construction and (ii) 231,978 partnership units held by third-parties in a subsidiary that are convertible on a one-for-one basis (subject to certain limitations) into common shares of the Company at the option of the unitholder (collectively, the “Noncontrolling Interests”). At September 30, 2015, the Noncontrolling Interests cannot require us to redeem their interests, other than pursuant to a liquidation of the subsidiary. During the nine months ended September 30, 2015 and 2014, we allocated a total of $4.7 million and $4.0 million of income, respectively, to these interests and we paid $5.5 million and $5.2 million in distributions , respectively, to these interests. During the nine months ended September 30, 2015, we acquired noncontrolling interests for $5.4 million in cash, substantially all of which was allocated to paid-in capital. Also during the nine months ended September 30, 2015, noncontrolling interests contributed $1.0 million . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 8. Shareholders’ Equity Preferred Shares At September 30 , 2015 and December 31, 2014 , we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding: At September 30, 2015 At December 31, 2014 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series O 4/15/2015 - $ - $ Series P 10/7/2015 - - Series Q 4/14/2016 Series R 7/26/2016 Series S 1/12/2017 Series T 3/13/2017 Series U 6/15/2017 Series V 9/20/2017 Series W 1/16/2018 Series X 3/13/2018 Series Y 3/17/2019 Series Z 6/4/2019 Series A 12/2/2019 Total Preferred Shares $ $ The holders of our Preferred Shares have general preference rights with respect to liquidation, quarterly distributions and any accumulated unpaid distributions. Except under certain conditions and as noted below, holders of the Preferred Shares will not be entitled to vote on most matters. In the event of a cumulative arrearage equal to six quarterly dividends, holders of all outstanding series of preferred shares (voting as a single class without regard to series) will have the right to elect two additional members to serve on our b oard of t rustees (the “Board”) until the arrearage has been cured. At September 30 , 201 5 , there were no dividends in arrears. Except under certain conditions relating to the Company’s qualification as a REIT, the Preferred Shares are not redeemable prior to the dates indicated on the table above. On or after the respective dates, each of the series of Preferred Shares is redeemable at our option, in whole or in part, at $ 25.00 per depositary share, plus accrued and unpaid dividends. Holders of the Preferred Shares cannot require us to redeem such shares. Upon issuance of our Preferred Shares, we classify the liquidation value as preferred equity on our balance sheet with any issuance costs recorded as a reduction to paid-in capital. During the nine months ended September 30, 201 4 , we issued an aggregate 22.9 million depositary shares, each representing 1/1,000 of a share of our Series Y and Series Z Preferred Shares, at an issuance price of $25.00 per depositary share, for a total of $572.5 million in gross proceeds, and we incurred $17.4 million in issuance costs. During the nine months ended September 30, 2015, we called our Series O and Series P Preferred Shares for redemption at par. The aggregate redemption amount, before payment of accrued dividends, was $270.0 million, of which $125.0 million, for our Series P Preferred Shares was paid on October 8, 2015. We recorded $4.1 million and $8.9 million in EITF D-42 allocation of income from our common shareholders to the holders of our Preferred Shares in the three and nine months ended September 30, 2015, respectively, in connection with these redemptions. Common share dividends, including amounts paid to our restricted share unitholders, totaled $294.6 million ($1.70 per share) and $242.0 million ($1.40 per share) for the three months ended September 30, 2015 and 2014, respectively, and $831.3 million ($4.80 per share) and $725.7 million ($4.20 per share), for the nine months ended September 30, 2015 and 2014, respectively. Preferred share dividends totaled $61.1 million and $60.8 million for the three months ended September 30, 2015 and 2014, respectively, and $186.1 million and $170.9 million, for the nine months ended September 30, 2015 and 2014, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Hughes Family owns approximately 14.4% of our common shares outstanding at September 30 , 2015 . The Hughes Family has ownership interests in, and operates, approximately 54 self-storage facilities in Canada (“PS Canada”) using the “Public Storage” brand name pursuant to a non-exclusive, royalty-free trademark license agreement with the Company. We currently do not own any interests in these facilities. We have a right of first refusal to acquire the stock or assets of the corporation that manages th e 5 4 self-storage facilities in Canada, if the Hughes Family or the corporation agrees to sell them. We reinsure risks relating to loss of goods stored by customers in these facilities. During each of the nine month periods ended September 30, 2015 and 2014, we received $0.4 million in reinsurance premiums attributed to these facilities. There is no assurance that these premiums will continue, as our rights to reinsure these risks could be withdrawn at any time. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation Under various share-based compensation plans and under terms established by a committee of our Board, the Company grants non-qualified options to purchase the Company’s common shares, as well as restricted share units (“RSUs”), to trustees, officers, service providers and key employees. Stock options and RSUs are considered “granted” and “outstanding” as the terms are used herein, when ( i) the Company and the recipient reach a mutual understanding of the key terms of the award, ( ii) the award has been authorized, ( iii) the recipient is affected by changes in the market price of our stock, and ( iv) it is probable that any performance and service conditions will be met. We amortize the grant-date fair value of awards (net of anticipated forfeitures) as compensation expense over the service period. The service period begins on the grant date and ends on the vesting date. For awards that are earned solely upon the passage of time and continued service, the entire cost of the award is amortized on a straight-line basis over the service period. For awards with performance conditions, the individual cost of each vesting is amortized separately over each individual service period (the “accelerated attribution” method). Stock Options Stock options vest over a three to five -year period, expire ten years after the grant date, and the exercise price is equal to the closing trading price of our common shares on the grant date. Employees cannot require the Company to settle their award in cash. We use the Black-Scholes option valuation model to estimate the fair value of our stock options. Outstanding stock option grants are included on a one-for-one basis in our diluted weighted average shares, to the extent dilutive, after applying the treasury stock method (based upon the average common share price during the period) to assumed exercise proceeds and measured but unrecognized compensation. For the three and nine months ended September 30, 2015, we recorded $0.9 million and $2.4 million, respectively, in compensation expense related to stock options, as compared to $0.8 million and $2.1 million for the same periods in 2014. During the nine months ended September 30, 2015, 285,000 stock options were granted, 310,745 options were exercised and 115,000 options were forfeited. A total of 1,944,799 stock options were outstanding at September 30, 2015 ( 2,085,544 at December 31, 2014). Restricted Share Units RSUs generally vest ratably over a three to eight -year period from the grant date. The grantee receives dividends for each outstanding RSU equal to the per-share dividends received by our common shareholders. We expense any dividends previously paid upon forfeiture of the related RSU. Upon vesting, the grantee receives common shares equal to the number of vested RSUs, less common shares withheld in exchange for tax deposits made by the Company to satisfy the grantee’s statutory tax liabilities arising from the vesting. The fair value of our RSUs is determined based upon the applicable closing trading price of our common shares. During the nine months ended September 30, 2015, 146,280 RSUs were granted, 58,180 RSUs were forfeited and 166,331 RSUs vested. This vesting resulted in the issuance of 97,401 common shares. In addition, tax deposits totaling $13.7 million were made on behalf of employees in exchange for 68,930 common shares withheld upon vesting. RSUs outstanding at September 30, 2015 and December 31, 2014 were 672,817 and 751,048 , respectively. A total of $9.0 million and $22.0 million in RSU expense was recorded for the three and nine months ended September 30, 2015, respectively, which includes approximately $0.1 million and $1.0 million , respectively, in employer taxes incurred upon vesting, as compared to $8.0 million and $20.0 million for the same periods in 2014, which includes approximately $0.1 million and $1.1 million, respectively, in employer taxes incurred upon vesting. See also “net income per common share” in Note 2 for further discussion regarding the impact of RSUs and stock options on our net income per common share and income allocated to common shareholders. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | 11. Segment Information Our reportable segments reflect the significant components of our operations where discreet financial information is evaluated separately by our chief operating decision maker (“CODM”). We organize our segments based primarily upon the nature of the underlying products and services, as well as the drivers of profitability growth . The net income for each reportable segment included in the tables below are in conformity with GAAP and our significant accounting policies as denoted in Note 2. The amounts not attributable to reportable segments are aggregated under “other items not allocated to segments.” We have adjusted the classification of the “Presentation of Segment Information” below with respect to prior periods to be consistent with our current reportable segment definition, as described more fully in Note 2. Following is a description of and basis for presentation for each of our reportable segments. Self-Storage Operations The Self-Storage Operations segment reflects the rental operations from all self-storage facilities owned by the Company and the Subsidiaries. Our CODM reviews the net operating income (“NOI”) of this segment, which represents the related revenues less cost of operations (prior to depreciation expense), in assessing performance and making resource allocation decisions. The presentation in the tables below sets forth the NOI of this segment, as well as the depreciation expense for this segment, which while reviewed by our CODM and included in net income, is not considered by the CODM in assessing performance and decision making. For all periods presented, substantially all of our real estate facilities, goodwill and other intangible assets, other assets, and accrued and other liabilities are associated with the Self-Storage Operations segment. Ancillary Operations The Ancillary Operations segment reflects the sale of merchandise and reinsurance of policies against losses to goods stored by our self-storage tenants, activities which are incidental to our primary self-storage rental activities. Our CODM reviews the NOI of these operations in assessing performance and making resource allocation decisions. Investment in PSB This segment represents our 42% equity interest in PSB, a publicly-traded REIT that owns, operates, acquires and develops commercial properties, primarily multi-tenant flex, office, and industrial space. PSB has a separate management team that makes its financing, capital allocation, and other significant decisions. In making resource allocation decisions with respect to our investment in PSB, the CODM reviews PSB’s net income, which is detailed in PSB’s periodic filings with the United States Securities and Exchange Commission (“SEC”), and as included in Note 4. The segment presentation in the tables below includes our equity earnings from PSB. Investment in Shurgard Europe This segment represents our 49% equity interest in Shurgard Europe, which owns and operates self-storage facilities located in seven countries in Western Europe. Shurgard Europe has a separate management team reporting to our CODM and our joint venture partner. In making resource allocation decisions with respect to our investment in Shurgard Europe, the CODM reviews Shurgard Europe’s net income, which is detailed in Note 4. The segment presentation below includes our equity earnings from Shurgard Europe. Presentation of Segment Information The following tables reconcile NOI (as applicable) and net income of each segment to our consolidated net income (amounts in thousands): Three months ended September 30, 2015 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Equity in earnings of unconsolidated real estate entities - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ Three months ended September 30, 2014 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Interest expense - - - - Equity in earnings of unconsolidated real estate entities - - Foreign currency exchange loss - - - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ Nine months ended September 30, 2015 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Equity in earnings of unconsolidated real estate entities - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ Nine months ended September 30, 2014 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Interest expense - - - - Equity in earnings of unconsolidated real estate entities - - Foreign currency exchange loss - - - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 12. Commitments and Contingencies Contingent Losses We are a party to various legal proceedings and subject to various claims and complaints; however, we believe that the likelihood of these contingencies resulting in a material loss to the Company, either individually or in the aggregate, is remote. Insurance and Loss Exposure We have historically carried customary property, earthquake, general liability, employee medical insurance and workers compensation coverage through internationally recognized insurance carriers, subject to customary levels of deductibles. The aggregate limits on these policies of approximately $75 million for property losses and $102 million for general liability losses are higher than estimates of maximum probable losses that could occur from individual catastrophic events determined in recent engineering and actuarial studies; however, in case of multiple catastrophic events, these limits could be exhausted. We reinsure a program that provides insurance to our customers from an independent third-party insurer. This program covers tenant claims for losses to goods stored at our facilities as a result of specific named perils (earthquakes are not covered by this program), up to a maximum limit of $5,000 per storage unit. We reinsure all risks in this program. We are subject to licensing requirements and regulations in several states. At September 30, 2015, there were approximately 880,000 certificates held by our self-storage customers, representing aggregate coverage of approximately $2.5 billion . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 3 . Subsequent Events On November 3, 2015, we issued €242.0 million of Euro-denominated unsecured Senior Notes, bearing interest at a fixed rate of 2.175% and maturing in ten years. Subsequent to September 30, 2015, we acquired or were under contract to acquire (subject to customary closing conditions) eleven self-storage facilities (eight in Florida, two in Texas and one in California ) with 0.8 million net rentable square feet for $107.7 million . |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited interim financial statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as defined in the Financial Accounting Standards Board (“FASB") Accounting Standards Codification (the “Codification”), including guidance with respect to interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. While they do not include all of the disclosures required by GAAP for complete financial statements, we believe that we have included all adjustments (consisting of normal and recurring adjustments) necessary for a fair presentation. Operating results for the three and nine months ended September 30 , 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 due to seasonality and other factors. These interim financial statements should be read together with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Certain amounts previously reported in our September 30, 2014 financial statements have been reclassified to conform to the September 30, 2015 presentation . We reclassified the revenue s and cost of operations, net for our wholly-owned commercial facilities and property management operations as interest and other income ( an aggregate of approximately $3.1 million and $9.5 million for the three and nine months ended September 30, 2014 , respectively), rather than as ancillary revenues and ancillary cost of operations . We also revised our reportable segment presentation in Note 11, including renaming (i) our “Domestic Self-Storage” segment to “Self-Storage Operations,” (ii) our “European Self-Storage” segment to “Investment in Shurgard Europe,” (iii) our “Commercial” segment to “Investment in PSB,” removing our commercial facilities’ operations from this segment, and (iv) presenting a new segment called “Ancillary Operations” reflecting the sale of merchandise at our self-storage facilities and reinsurance of policies covering losses to goods stored by our tenants at our facilities. Each of these reclassifications reflects changes to enhance the usefulness of this information based upon the relative significance of these activities to our aggregate operating results . |
Consolidation And Equity Method Of Accounting | Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or where the equity holders as a group do not have a controlling financial interest. We have no investments or other involvement in any VIEs. We consolidate all entities that we control (these entities, for the period in which the reference applies, are referred to collectively as the “Subsidiaries”), and we eliminate intercompany transactions and balances. We account for our investments in entities that we have significant influence over, but do not control, using the equity method of accounting (these entities, for the periods in which the reference applies, are referred to collectively as the “Unconsolidated Real Estate Entities”), eliminating intra-entity profits and losses and amortizing any differences between the cost of our investment and the underlying equity in net assets against equity in earnings as if the Unconsolidated Real Estate Entity were a consolidated subsidiary. When we obtain control of an Unconsolidated Real Estate Entity, we commence consolidating the entity and record a gain representing the differential between the book value and fair value of our preexisting equity interest. All changes in consolidation status are reflected prospectively. When we are general partner, we control the partnership unless the third-party limited partners can dissolve the partnership or otherwise remove us as general partner without cause, or if the limited partners have the right to participate in substantive decisions of the partnership. Collectively, at September 30 , 2015, the Company and the Subsidiaries own 2,254 self-storage facilities in the U .S., one self -storage facility in London, England and four commercial facilities in the U.S. At September 30, 2015, the Unconsolidated Real Estate Entities are comprised of PSB, Shurgard Europe, as well as limited partnerships that own an aggregate of 12 self-storage facilities in the U.S. (these limited partnerships, for the periods in which the reference applies, are referred to as the “Other Investments”). |
Use Of Estimates | Use of Estimates The financial statements and accompanying notes reflect our estimates and assumptions. Actual results could differ from those estimates and assumptions. |
Income Taxes | Income Taxes We have elected to be treated as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code of 1986, as amended (the “Code”) . As a REIT, we do not incur federal income tax if we distribute 100 % of our REIT taxable income (generally, net rents and gains from real property, dividends, and interest) each year, and if we meet certain organizational and operational rules. We believe we will meet these REIT requirements in 2015, and that we have met them for all other periods presented herein. Accordingly, we have recorded no federal income tax expense related to our REIT taxable income. Our merchandise and tenant reinsurance operations are subject to corporate income tax and such taxes are included in ancillary cost of operations. We also incur income and other taxes in certain states, which are included in general and administrative expense. We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of September 30 , 2015, we had no tax benefits that were not recognized. |
Real Estate Facilities | Real Estate Facilities Real estate facilities are recorded at cost. We capitalize all costs incurred to develop, construct, renovate and improve facilities , including interest and property taxes incurred during the construction period. We expense internal and external transaction costs associated with acquisitions or dispositions of real estate, as well as repairs and maintenance costs, as incurred. We depreciate buildings and improvements on a straight-line basis over estimated useful lives ranging generally between 5 to 25 years. We allocate the net acquisition cost of acquired operating self-storage facilities to the underlying land, buildings, identified intangible assets, and any noncontrolling interests that remain outstanding based upon their respective individual estimated fair values. Any difference between the net acquisition cost and the estimated fair value of the net tangible and intangible assets acquired is recorded as goodwill. |
Other Assets | Other Assets Other assets primarily consist of rents receivable from our tenants, prepaid expenses and restricted cash. |
Accrued And Other Liabilities | Accrued and Other Liabilities Accrued and other liabilities consist primarily of rents prepaid by our tenants, trade payables, property tax accruals, accrued payroll, accrued tenant reinsurance losses, and contingent loss accruals when probable and estimable. We disclose the nature of significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure. |
Cash Equivalents And Marketable Securities | Cash Equivalents, Marketable Securities and Other Financial Instruments Cash equivalents represent highly liquid financial instruments such as money market funds with daily liquidity or short-term commercial paper or treasury securities maturing within three months of acquisition. Cash and cash equivalents which are restricted from general corporate use are included in other assets. Commercial paper not maturing within three months of acquisition, which we intend and have the capacity to hold until maturity, are included in marketable securities and accounted for using the effective interest method. Transfers of financial assets are recorded as sales when the asset is put presumptively beyond our and our creditors’ reach, there is no impediment to the transferee’s right to pledge or exchange the asset, we have surrendered effective control of the asset, we have no actual or effective right or requirement to repurchase the asset and, in the case of a transfer of a participating interest, there is no impediment to our right to pledge or exchange the participating interest we retain. |
Fair Value Accounting | Fair Value Accounting As used herein, the term “fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. We prioritize the inputs used in measuring fair value based upon a three-tier hierarchy described in Codification Section 820-10-35. Our estimates of fair value involve considerable judg ment and are not necessarily indicative of the amounts that could be realized in current market exchanges . We believe that, during all periods presented, the carrying values approximate the estimated fair values of our cash and cash equivalents , other assets, and accrued and other liabilities, based upon our evaluation of the underlying characteristics, market data, and short maturity of these financial instruments, which involved considerable judgment. The characteristics of these financial instruments, market data, and other comparative metrics utilized in determining these fair values are “Level 2” inputs as the term is defined in Codification Section 820-10-35-47. We estimate fair values in recording our business combinations, to evaluate real estate, investments in unconsolidated real estate entities, goodwill, and other intangible assets for impairment, and to determine the fair values of notes payable and receivable. In estimating these fair values, we consider significant unobservable inputs such as market prices of land, market capitalization rates and earnings multiples for real estate facilities, projected levels of earnings, costs of construction, functional depreciation, and market interest rates for debt securities with a similar time to maturity and credit quality, which are “Level 3” inputs as the term is defined in Codification Section 820-10-35-52. |
Currency And Credit Risk | Currency and Credit Risk Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, certain portions of other assets including re nts receivable from our tenants and restricted cash. Cash equivalents we invest in are either money market funds with a rating of at least AAA by Standard and Poor’s, commercial paper that is rated A1 by Standard and Poor’s or deposits with highly rated commercial banks. At September 30 , 2015, due primarily to our investment in Shurgard Europe, our operating results and financial position are affected by fluctuations in currency exchange rates between the Euro, and to a lesser extent, other European currencies, against the U.S. Dollar. |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets are comprised of goodwill, the “Shurgard” trade name, acquired customers in place, and leasehold interests in land. Goodwill totaled $ 174.6 million at September 30 , 2015 and December 31, 2014. The “Shurgard” trade name, which is used by Shurgard Europe pursuant to a fee-based licensing agreement, has a book value of $ 18.8 million at September 30 , 2015 and December 31, 2014. Goodwill and the “Shurgard” trade name have indefinite lives and are not amortized. Acquired customers in place and leasehold interests in land are finite-lived and are amortized relative to the benefit of the customers in place or the benefit to land lease expense to each period. At September 30, 2015, these intangibles had a net book value of $19.5 million ($ 35.2 million at December 31, 2014). Accumulated amortization totaled $74.2 million at September 30 , 2015 ($ 69.3 million at December 31, 2014), and amortization expense of $21.3 million and $37.4 million was recorded in the nine months ended September 30, 2015 and 2014, respectively. The estimated f uture amortization expense for our finite-lived intangible assets at September 30 , 2015 is approximately $4.2 million in the remainder of 2015, $7.5 million in 2016 and $7.8 million thereafter. During the nine months ended September 30, 2015, intangibles were increased $5.7 million in connection with the acquisition of self-storage facilities (Note 3). |
Evaluation Of Asset Impairment | Evaluation of Asset Impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. We evaluate our investments in unconsolidated real estate entities for impairment on a quarterly basis. We record an impairment charge to the extent the carrying amount exceeds estimated fair value, when we believe any such shortfall is other than temporary. We evaluate goodwill for impairment annually and whenever relevant events, circumstances and other related factors indicate that fair value of the related reporting unit may be less than the carrying amount. If we determine that the fair value of the reporting unit exceeds the aggregate carrying amount, no impairment charge is recorded. Otherwise, we record an impairment charge to the extent the carrying amount of the goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value. We evaluate the “Shurgard” trade name for impairment at least annually and whenever relevant events, circumstances and other related factors indicate that the fair value is less than the carrying amount. When we conclude that it is likely that the asset is not impaired, we do not record an impairment charge and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value. No impairments were recorded in any of our evaluations for any period presented herein. |
Revenue And Expense Recognition | Revenue and Expense Recognition Revenues from self-storage facilities, which is primarily composed of r ental income earned pursuant to month-to-month leases for storage space, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period , which is generally one month . Ancillary revenues and interest and other income are recognized when earned. Equity in earnings of unconsolidated real estate entities represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entities. We accrue for property tax expense based upon actual amounts billed and, in some circumstances, estimates and historical trends when bills or assessments have not been received from the taxing authorities or such bills and assessments are in dispute. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations, general and administrative expense, interest expense, as well as television and other advertising expenditures are expensed as incurred. |
Foreign Currency Exchange Translation | Foreign Currency Exchange Translation The local currency (primarily the Euro) is the functional currency for our interests in foreign operations. The related balance sheet amounts are translated into U.S. Dollars at the exchange rates at the respective financial statement date, while amounts on our statements of income are translated at the average exchange rates during the respective period. When financial instruments denominated in a currency other than the U.S. Dollar are expected to be settled in cash in the foreseeable future, the impact of changes in the U.S. Dollar equivalent are reflected in current earnings. The Euro was translated at exchange rates of approximately 1.124 U.S. Dollars per Euro at September 30 , 2015 ( 1.216 at December 31, 2014), and average exchange rates of 1.112 and 1.326 for the three months ended September 30 , 2015 and 2014, respectively , and average exchange rates of 1.115 and 1.356 for the nine months ended September 30 , 2015 and 2014, respectively. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in equity as a component of accumulated other comprehensive income (loss). |
Comprehensive Income | Comprehensive Income Total comprehensive income represents net income, adjusted for changes in other comprehensive income (loss) for the applicable period. The aggregate foreign currency exchange gains and losses reflected on our statements of comprehensive income are comprised primarily of foreign currency exchange gains and losses on our investment in Shurgard Europe. |
Recent Accounting Pronouncements And Guidance | Recent Accounting Pronouncements and Guidance In May 2014, the FASB issued ASU No. 2014-09 , which requir es revenue to be based upon the consideration expected from customers for promised go ods or services . The new standard , effective on January 1, 2018, permits either the retrospective or cumulative effects transition method and allows for early adoption on January 1, 2017 . We do not believe this standard will have a material impact on our results of operations or financial condition. In February 2015, the FASB issued ASU No. 2015-02, which modifies i) the criteria for and the analysis of the identification of consolidation of variable interest entities, particularly when fee arrangements and related party relationships are involved, and ii) the consolidation analysis for partnerships . The standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period , with early adoption permitted. We have not yet determined whether this standard will have a material effect on our results of operations or financial condition. |
Net Income Per Common Share | Net Income per Common Share Net income is allocated to (i) noncontrolling interests based upon their share of the net income of the Subsidiaries, (ii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds ( in accordance with the provisions of Codification Section 260-10-S99-2, an “EITF D-42 allocation”), and (iii) the remaining net income allocated to each of our equity securities based upon the dividends declared or accumulated during the period, combined with participation rights in undistributed earnings. Basic net income per share is computed using the weighted average common shares outstanding. Diluted net income per share is computed using the weighted average common shares outstanding, adjusted for the impact, if dilutive, of stock options outstanding (Note 10). The following table reflects net income allocable to common shareholders and the weighted average common shares and equivalents outstanding, as used in our calculations of basic and diluted net income per share: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Amounts in thousands) Net income allocable to common shareholders $ $ $ $ Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding Net effect of dilutive stock options - based on treasury stock method Diluted weighted average common shares outstanding |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Net Income Per Common Share | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Amounts in thousands) Net income allocable to common shareholders $ $ $ $ Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding Net effect of dilutive stock options - based on treasury stock method Diluted weighted average common shares outstanding |
Real Estate Facilities (Tables)
Real Estate Facilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Facilities [Abstract] | |
Schedule Of Real Estate Activities | Nine Months Ended September 30, 2015 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ Capital expenditures to maintain real estate facilities Acquisitions Dispositions Newly developed facilities opened for operation Impact of foreign exchange rate changes Ending balance Accumulated depreciation: Beginning balance Depreciation expense Dispositions Impact of foreign exchange rate changes Ending balance Construction in process: Beginning balance Current development Newly developed facilities opened for operation Ending balance Total real estate facilities at September 30, 2015 $ |
Investments In Unconsolidated25
Investments In Unconsolidated Real Estate Entities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule Of Investments In Real Estate Entities And Equity In Earnings Of Real Estate | Investments in Unconsolidated Real Estate Entities at September 30, 2015 December 31, 2014 PSB $ $ Shurgard Europe Other Investments Total $ $ Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 PSB $ $ $ $ Shurgard Europe Other Investments Total $ $ $ $ |
PSB [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule Of Selected Financial Information | September 30, December 31, 2015 2014 (Amounts in thousands) Total assets (primarily real estate) $ $ Debt Preferred stock called for redemption - Other liabilities Equity: Preferred stock Common equity and LP units 2015 2014 (Amounts in thousands) For the nine months ended September 30, Total revenue $ $ Costs of operations Depreciation and amortization General and administrative Other items Gain on sale of facilities - Net income Allocations to preferred shareholders and restricted share unitholders Net income allocated to common shareholders and LP Unitholders $ $ |
Shurgard Europe [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule Of Selected Financial Information | September 30, December 31, 2015 2014 (Amounts in thousands) Total assets (primarily self-storage facilities) $ $ Total debt to third parties Other liabilities Equity Exchange rate of Euro to U.S. Dollar 2015 2014 (Amounts in thousands) For the nine months ended September 30, Self-storage and ancillary revenues $ $ Self-storage and ancillary cost of operations Depreciation and amortization General and administrative Interest expense on third party debt Trademark license fee payable to Public Storage Interest expense on shareholder loan - Costs of acquiring facilities and other, net Net income $ $ Average exchange rates of Euro to the U.S. Dollar |
Schedule Of Equity In Earnings | 2015 2014 (Amounts in thousands) For the nine months ended September 30, Calculation of equity in earnings of Shurgard Europe: Our 49% share of Shurgard Europe’s net income $ $ Adjustments: 49% of trademark license fees 49% of interest on shareholder loan - Total equity in earnings of Shurgard Europe $ $ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Preferred Shares Outstanding | At September 30, 2015 At December 31, 2014 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series O 4/15/2015 - $ - $ Series P 10/7/2015 - - Series Q 4/14/2016 Series R 7/26/2016 Series S 1/12/2017 Series T 3/13/2017 Series U 6/15/2017 Series V 9/20/2017 Series W 1/16/2018 Series X 3/13/2018 Series Y 3/17/2019 Series Z 6/4/2019 Series A 12/2/2019 Total Preferred Shares $ $ |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Summary Of Segment Information | Three months ended September 30, 2015 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Equity in earnings of unconsolidated real estate entities - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ Three months ended September 30, 2014 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Interest expense - - - - Equity in earnings of unconsolidated real estate entities - - Foreign currency exchange loss - - - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ Nine months ended September 30, 2015 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Equity in earnings of unconsolidated real estate entities - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ Nine months ended September 30, 2014 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Europe Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues Self-storage operations $ $ - $ - $ - $ - $ Ancillary operations - - - - - - - Cost of operations: Self-storage operations - - - - Ancillary operations - - - - - - - Net operating income Self-storage operations - - - - Ancillary operations - - - - - - - Other components of net income (loss): Depreciation and amortization - - - - General and administrative - - - - Interest and other income - - - - Interest expense - - - - Equity in earnings of unconsolidated real estate entities - - Foreign currency exchange loss - - - - Gain on real estate sales - - - - Net income (loss) $ $ $ $ $ $ |
Description Of The Business (De
Description Of The Business (Details) ft² in Millions | 9 Months Ended | |
Sep. 30, 2015ft²stateitemcounty | Dec. 31, 2014 | |
PSB [Member] | ||
Nature Of Business [Line Items] | ||
Net rentable square feet | 29 | |
Number of states with facilities | state | 10 | |
Ownership interest, percentage | 42.00% | 42.00% |
Public Storage [Member] | ||
Nature Of Business [Line Items] | ||
PSA self-storage facilities | item | 2,266 | |
Net rentable square feet | 147 | |
Number of states with facilities | state | 38 | |
London [Member] | ||
Nature Of Business [Line Items] | ||
Number of facilities owned by Shurgard Europe | item | 1 | |
Shurgard Europe [Member] | ||
Nature Of Business [Line Items] | ||
Net rentable square feet | 11 | |
Ownership interest, percentage | 49.00% | |
Number of facilities owned by Shurgard Europe | item | 216 | |
Shurgard Europe [Member] | Western Europe [Member] | ||
Nature Of Business [Line Items] | ||
Direct interest in self-storage facilities, number of countries | county | 7 |
Summary Of Significant Accoun29
Summary Of Significant Accounting Policies ( Basis of Presentation andConsolidation And Equity Method Of Accounting) (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Interest and Other Income | $ | $ 3,659,000 | $ 3,830,000 | $ 11,509,000 | $ 13,674,000 |
Investments in VIEs | $ | $ 0 | $ 0 | ||
Commercial & Property Management Operations [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Interest and Other Income | $ | $ 3,100,000 | $ 9,500,000 | ||
London [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Owned self-storage facilities | 1 | 1 | ||
U.S. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Owned self-storage facilities | 2,254 | 2,254 | ||
Commercial facilities in U.S. | 4 | 4 | ||
Other Investments [Member] | U.S. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Owned self-storage facilities | 12 | 12 |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Income Taxes And Real Estate Facilities) (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Percentage of real estate investment trust taxable income distributed for exemption of federal income tax | 100.00% |
Income tax expense | $ 0 |
Unrecognized tax benefits | $ 0 |
Maximum [Member] | |
Estimated useful lives of buildings and improvements | 25 years |
Minimum [Member] | |
Estimated useful lives of buildings and improvements | 5 years |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Goodwill And Intangible Assets) (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Goodwill balance | $ 174.6 | $ 174.6 | |
Shurgard trade name, book value | 18.8 | 18.8 | |
Tenant intangibles net book value | 19.5 | 35.2 | |
Accumulated amortization, tenant intangibles | 74.2 | $ 69.3 | |
Amortization expense, tenant intangibles | 21.3 | $ 37.4 | |
Estimated future amortization expense, remainder of 2015 | 4.2 | ||
Estimated future amortization expense, 2016 | 7.5 | ||
Estimated future amortization expense, thereafter | 7.8 | ||
Increase in tenant intangibles | $ 5.7 |
Summary Of Significant Accoun32
Summary Of Significant Accounting Policies (Evaluation Of Asset Impairment, Foreign Currency Exchange Translation, And Discontinued Operations) (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Foreign Currency Average Exchange Rate [Member] | |||||
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Average exchange rates USD to Euro | 1.112 | 1.326 | 1.115 | 1.356 | |
Foreign Currency Actual [Member] | |||||
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Exchange rate | 1.124 | 1.124 | 1.216 |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Net income allocated to common shareholders | $ 273,508 | $ 231,815 | $ 750,047 | $ 624,219 |
Basic weighted average common shares outstanding | 172,771 | 172,378 | 172,641 | 172,190 |
Net effect of dilutive stock options - based on treasury stock method | 758 | 926 | 787 | 908 |
Diluted weighted average common shares outstanding | 173,529 | 173,304 | 173,428 | 173,098 |
Real Estate Facilities (Narrati
Real Estate Facilities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ft²item | Sep. 30, 2014USD ($) | |
Schedule Of Real Estate Facilities [Line Items] | ||||
Acquisition cost of real estate facilities | $ 113,500 | |||
Cash to acquire self-storage facilities | 104,915 | $ 271,228 | ||
Mortgage debt assumed | 8,600 | |||
Allocated To Real Estate Facilities | 107,872 | |||
Gains on disposition of real estate facilities | $ 343 | $ 1,260 | $ 18,503 | $ 2,479 |
Disposal Of Commercial Facility [Member] | ||||
Schedule Of Real Estate Facilities [Line Items] | ||||
Number of self-storage facilities disposed | item | 1 | |||
Disposal Of Two Facilities [Member] | ||||
Schedule Of Real Estate Facilities [Line Items] | ||||
Number of self-storage facilities disposed | item | 2 | |||
Acquisition Of Self-Storage Facilities [Member] | ||||
Schedule Of Real Estate Facilities [Line Items] | ||||
Number of operating self-storage facilities | item | 10 | |||
Net rentable square feet | ft² | 738,000 | |||
Aggregate cost, intangibles | $ 5,700 | |||
Newly Developed and Expansion Projects [Member] | Construction In Process [Member] | ||||
Schedule Of Real Estate Facilities [Line Items] | ||||
Net rentable square feet | ft² | 4,000,000 | |||
Aggregate costs to develop new self-storage facilities and expand existing self-storage facilities | $ 506,600 | |||
Newly Developed and Expansion Projects [Member] | Completed Developed and Expansion Project [Member] | ||||
Schedule Of Real Estate Facilities [Line Items] | ||||
Square footage of additional space | ft² | 897,000 | |||
Aggregate costs to develop new self-storage facilities and expand existing self-storage facilities | $ 89,800 |
Real Estate Facilities (Schedul
Real Estate Facilities (Schedule Of Real Estate Activities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Real Estate Facilities [Abstract] | ||
Beginning balance (Operating facilities, at cost) | $ 12,863,235 | |
Capital expenditures to maintain real estate facilities | 52,875 | |
Acquisitions | 107,872 | |
Dispositions | (19,970) | |
Newly developed facilities opened for operation | 89,794 | |
Impact of foreign exchange rate changes | (943) | |
Ending balance (Operating facilities, at cost) | 13,092,863 | |
Beginning balance, (Accumulated depreciation) | (4,482,520) | |
Depreciation expense | (293,722) | |
Dispositions | 8,886 | |
Impact of foreign exchange rate changes | 252 | |
Ending balance, (Accumulated depreciation) | (4,767,104) | |
Beginning Balance (Construction in process | 104,573 | |
Current development | 159,843 | |
Newly developed facilities opened for operation | (89,794) | |
Ending Balance (Construction in process | 174,622 | |
Total real estate facilities at September 30, 2015 | $ 8,500,381 | $ 8,485,288 |
Investments In Unconsolidated36
Investments In Unconsolidated Real Estate Entities (Investments) (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash distributions from Unconsolidated Real Estate Entities | $ 26,100,000 | $ 35,500,000 | |||
Amount of investment exceeding pro rata share of underlying equity | $ 56,000,000 | 56,000,000 | $ 68,000,000 | ||
Equity earnings, amortization amount | 2,800,000 | $ 1,400,000 | 2,800,000 | 1,400,000 | |
Equity in earnings of unconsolidated real estate entities | 12,603,000 | 14,566,000 | 36,267,000 | 43,305,000 | |
Gain on real estate sales | $ 343,000 | $ 1,260,000 | $ 18,503,000 | $ 2,479,000 | |
PSB [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest, percentage | 42.00% | 42.00% | 42.00% | ||
Common stock owned of PSB | 7,158,354 | 7,158,354 | |||
Limited partnership units in PSB | $ 7,305,355 | $ 7,305,355 | |||
Closing price per share PSB stock | $ 79.38 | $ 79.38 | |||
Market value of PSB stock and LP units | $ 1,100,000,000 | $ 1,100,000,000 | |||
Gain on real estate sales | 5,300,000 | 10,400,000 | |||
EITF D-42 Redemption of Series R Preferred Stock [Member] | PSB [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in earnings of unconsolidated real estate entities | $ 1,000,000 | $ 1,000,000 |
Investments In Unconsolidated37
Investments In Unconsolidated Real Estate Entities (Investment In Shurgard Europe) (Narrative) (Details) - Shurgard Europe [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Interest in Shurgard Europe | 49.00% | |
Increase (decrease) in Shurgard Europe investment from foreign currency exchange rates | $ (17.7) | $ (26.4) |
Acquisition costs | $ 9.9 | |
Joint Venture Partner [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Interest in Shurgard Europe | 51.00% |
Investments In Unconsolidated38
Investments In Unconsolidated Real Estate Entities (Schedule Of Investments In Real Estate Entities And Equity In Earnings Of Real Estate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | $ 806,204 | $ 806,204 | $ 813,740 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | 12,603 | $ 14,566 | 36,267 | $ 43,305 | |
PSB [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | 414,707 | 414,707 | 412,115 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | 10,323 | 5,513 | 25,734 | 15,165 | |
Shurgard Europe [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | 385,027 | 385,027 | 394,842 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | 1,616 | 8,363 | 8,707 | 26,626 | |
Other Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | 6,470 | 6,470 | $ 6,783 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | $ 664 | $ 690 | $ 1,826 | $ 1,514 |
Investments In Unconsolidated39
Investments In Unconsolidated Real Estate Entities (Schedule Of Selected Financial Information Of PSB) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Preferred stock called for redemption | $ 125,000 | ||
PSB [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total assets (primarily real estate) | 2,264,537 | $ 2,227,114 | |
Debt | 250,000 | 250,000 | |
Preferred stock called for redemption | 75,000 | ||
Other liabilities | 80,662 | 68,905 | |
Preferred stock | 920,000 | 995,000 | |
Common equity and LP units | 938,875 | $ 913,209 | |
Total revenue | 278,995 | $ 285,429 | |
Costs of operations | (92,251) | (98,081) | |
Depreciation and amortization | (79,243) | (83,547) | |
General and administrative | (10,172) | (8,928) | |
Other items | (9,623) | (9,944) | |
Gain on sale of facilities | 28,235 | ||
Net income | 115,941 | 84,929 | |
Allocations to preferred shareholders and restricted share unitholders | (48,090) | (45,465) | |
Net income allocated to common shareholders and LP Unitholders | $ 67,851 | $ 39,464 |
Investments In Unconsolidated40
Investments In Unconsolidated Real Estate Entities (Schedule Of Selected Financial Information Of Shurgard Europe) (Details) - Shurgard Europe [Member] $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)$ / € | Sep. 30, 2014USD ($)$ / € | Dec. 31, 2014USD ($)$ / € | |
Schedule of Equity Method Investments [Line Items] | |||
Total assets (primarily self-storage facilities) | $ 1,509,060 | $ 1,404,246 | |
Total debt to third parties | 682,903 | 500,767 | |
Other liabilities | 113,852 | 180,546 | |
Equity | $ 712,305 | $ 722,933 | |
Exchange rate of Euro to U.S. Dollar | $ / € | 1.124 | 1.216 | |
Self-storage and ancillary revenues | $ 175,095 | $ 193,079 | |
Self-storage and ancillary cost of operations | (67,746) | (76,583) | |
Depreciation and amortization | (49,518) | (47,367) | |
General and administrative | (18,069) | (10,389) | |
Interest expense on third party debt | (11,825) | (5,702) | |
Trademark license fee payable to Public Storage | (1,755) | (1,933) | |
Interest expense on debt due to Public Storage | (21,761) | ||
Costs of acquiring facilities and other, net | (10,168) | 1,301 | |
Net income | $ 16,014 | $ 30,645 | |
Average exchange rates Euro to the U.S. Dollar | $ / € | 1.115 | 1.356 |
Investments In Unconsolidated41
Investments In Unconsolidated Real Estate Entities (Schedule Of Equity In Earnings) (Details) - Shurgard Europe [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Our 49% equity share of Shurgard Europe’s net income | $ 7,847 | $ 15,016 |
Trademark license fee | 860 | 947 |
Interest on shareholder loan | 10,663 | |
Total equity in earnings of Shurgard Europe | $ 8,707 | $ 26,626 |
Equity share percentage in Shurgard Europe | 49.00% |
Loans Receivable From Unconso42
Loans Receivable From Unconsolidated Real Estate Entity (Narrative) (Details) $ in Thousands, € in Millions | Jan. 28, 2014EUR (€) | Jan. 28, 2014USD ($) | Jul. 31, 2014EUR (€) | Jul. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2013EUR (€) | Dec. 31, 2013USD ($) |
Loans Receivable From Real Estate Entities [Line Items] | |||||||||||
Proceeds from repayments of loan receivable | $ 204,947 | ||||||||||
Interest and other income | $ 3,659 | $ 3,830 | $ 11,509 | 13,674 | |||||||
Shurgard Europe [Member] | |||||||||||
Loans Receivable From Real Estate Entities [Line Items] | |||||||||||
Amount received from sale of loan | $ 216,200 | ||||||||||
Equity share percentage in Shurgard Europe | 49.00% | 49.00% | |||||||||
Shurgard Europe [Member] | Existing Loan [Member] | |||||||||||
Loans Receivable From Real Estate Entities [Line Items] | |||||||||||
Ownership interest in Shareholder Loan | 100.00% | 100.00% | |||||||||
Loans receivable from affiliates | € 311 | $ 428,100 | |||||||||
Percentage of Shareholder Loan acquired by our Shurgard Europe JV Partner | 51.00% | 51.00% | |||||||||
Amount received from sale of loan | € | € 158.6 | ||||||||||
Proceeds from repayments of loan receivable | € 152.4 | $ 204,900 | |||||||||
Interest and other income | $ 1,500 | $ 1,500 | |||||||||
Interest rate for real estate loans | 9.00% |
Credit Facility, Term Loan An43
Credit Facility, Term Loan And Notes Payable (Narrative) (Details) | Dec. 02, 2013USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Aug. 04, 2015USD ($) | Mar. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Schedule Of Debt [Line Items] | |||||||
Credit Facility borrowing capacity | $ 300,000,000 | ||||||
Notes payable | $ 55,725,000 | $ 64,364,000 | |||||
Unamortized premium | $ 300,000 | 600,000 | |||||
Secured by real estate facilities | item | 32 | ||||||
Net book value of real estate facilities securing notes payable | $ 151,000,000 | ||||||
Mortgage debt assumed | 8,600,000 | ||||||
Principal maturities, remainder of 2015 | 600,000 | ||||||
Principal maturities, 2016 | 29,000,000 | ||||||
Principal maturities, 2017 | 9,200,000 | ||||||
Principal maturities, 2018 | 11,100,000 | ||||||
Principal maturities, 2019 | 1,200,000 | ||||||
Principal maturities, thereafter | $ 4,600,000 | ||||||
Weighted average effective rate | 4.10% | ||||||
Cash paid for interest expense | $ 2,300,000 | $ 8,000,000 | |||||
Interest capitalized as real estate | $ 800,000 | 1,800,000 | 800,000 | ||||
Term Loan [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt issuance amount | $ 700,000,000 | ||||||
Loan origination costs | $ 1,900,000 | ||||||
Unamortized loan costs | $ 400,000 | $ 1,800,000 | |||||
Credit Facility [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Credit Facility borrowing capacity | $ 500,000,000 | ||||||
Facility fee percentage at end of quarter | 0.08% | ||||||
Undrawn standby letters of credit | $ 14,900,000 | $ 13,900,000 | |||||
Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Interest at period end spread (LIBOR) | 0.85% | ||||||
Maximum [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Stated note rate | 7.10% | ||||||
Maximum [Member] | Credit Facility [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Quarterly facility fee | 0.25% | ||||||
Maximum [Member] | Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Interest rate spread (LIBOR) | 1.45% | ||||||
Minimum [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Stated note rate | 2.90% | ||||||
Minimum [Member] | Credit Facility [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Quarterly facility fee | 0.08% | ||||||
Minimum [Member] | Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Interest rate spread (LIBOR) | 0.85% | ||||||
Acquisition Of Self-Storage Facilities [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt issuance amount | $ 8,400,000 | ||||||
Stated note rate | 6.20% | ||||||
Mortgage debt assumed | $ 8,600,000 | ||||||
Weighted average effective rate | 4.30% | ||||||
Subsequent Event [Member] | Credit Facility [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Outstanding borrowings on Credit Facility | $ 0 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)itemshares | Sep. 30, 2014USD ($) | |
Noncontrolling Interest [Line Items] | ||
Permanent Noncotrolling Interest in Subsidaries, number of self-storage facilities under construction | item | 7 | |
Redeemable noncontrolling interests in Subsidiaries | $ (984) | |
Increase in noncontrolling interest | $ 1,000 | |
Noncontrolling Interests [Member] | ||
Noncontrolling Interest [Line Items] | ||
Permanent Noncontrolling Interests in Subsidiaries, number of self-storage facilities | item | 13 | |
Convertible partnership units | shares | 231,978 | |
Redeemable noncontrolling interests in Subsidiaries | $ (984) | |
Income allocated to other Permanent Noncontrolling Interest in Subsidiaries | 4,700 | $ 4,000 |
Distributions paid | 5,500 | $ 5,200 |
Acquisition cost | $ 5,400 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)item$ / shares | Sep. 30, 2014USD ($)$ / sharesshares | Oct. 08, 2015USD ($) | |
Class of Stock [Line Items] | ||||
Number of quarterly dividends in arrearage before preferred shareholders can elect additional board members | item | 6 | |||
Number of additional board members the preferred shareholders can elect in the case of an excess arrearage of quarterly dividends | item | 2 | |||
Preferred stock, amount of preferred dividends in arrears | $ 0 | |||
Redeemable preferred stock redemption price per share | $ / shares | $ 25 | $ 25 | ||
Proceeds from issuance of preferred stock | $ 555,106,000 | |||
Series Y and Series Z Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of stock issued in sale | shares | 22.9 | |||
Preferred shares per depositary share | 0.10% | |||
Issuance price per depository share | $ / shares | $ 25 | |||
Proceeds from issuance of preferred stock | $ 572,500,000 | |||
Original issuance costs on preferred shares redeemed during the period | $ 17,400,000 | |||
Series O Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Redemption of cumulative preferred shares | $ 270,000,000 | $ 270,000,000 | ||
Series P Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Redemption of cumulative preferred shares | $ 125,000,000 | |||
EITF D-42 allocations | $ 4,100,000 | $ 8,900,000 |
Shareholders_ Equity (Dividends
Shareholders’ Equity (Dividends) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shareholders' Equity [Abstract] | ||||
Common stock dividends paid in aggregate | $ 294,600 | $ 242,000 | $ 831,300 | $ 725,700 |
Cash dividends declared per common share | $ 1.70 | $ 1.40 | $ 4.80 | $ 4.20 |
Preferred shareholders | $ (61,062) | $ (60,763) | $ (186,066) | $ (170,942) |
Shareholders_ Equity (Preferred
Shareholders’ Equity (Preferred Shares Outstanding) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||
Shares Outstanding | 162,200 | 173,000 |
Liquidation Preference | $ 4,055,000 | $ 4,325,000 |
Series O Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Apr. 15, 2015 | |
Dividend Rate % | 6.875% | |
Shares Outstanding | 5,800 | |
Liquidation Preference | $ 145,000 | |
Series P Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Oct. 7, 2015 | |
Dividend Rate % | 6.50% | |
Shares Outstanding | 5,000 | |
Liquidation Preference | $ 125,000 | |
Series Q Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Apr. 14, 2016 | |
Dividend Rate % | 6.50% | |
Shares Outstanding | 15,000 | 15,000 |
Liquidation Preference | $ 375,000 | $ 375,000 |
Series R Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Jul. 26, 2016 | |
Dividend Rate % | 6.35% | |
Shares Outstanding | 19,500 | 19,500 |
Liquidation Preference | $ 487,500 | $ 487,500 |
Series S Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Jan. 12, 2017 | |
Dividend Rate % | 5.90% | |
Shares Outstanding | 18,400 | 18,400 |
Liquidation Preference | $ 460,000 | $ 460,000 |
Series T Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Mar. 13, 2017 | |
Dividend Rate % | 5.75% | |
Shares Outstanding | 18,500 | 18,500 |
Liquidation Preference | $ 462,500 | $ 462,500 |
Series U Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Jun. 15, 2017 | |
Dividend Rate % | 5.625% | |
Shares Outstanding | 11,500 | 11,500 |
Liquidation Preference | $ 287,500 | $ 287,500 |
Series V Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Sep. 20, 2017 | |
Dividend Rate % | 5.375% | |
Shares Outstanding | 19,800 | 19,800 |
Liquidation Preference | $ 495,000 | $ 495,000 |
Series W Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Jan. 16, 2018 | |
Dividend Rate % | 5.20% | |
Shares Outstanding | 20,000 | 20,000 |
Liquidation Preference | $ 500,000 | $ 500,000 |
Series X Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Mar. 13, 2018 | |
Dividend Rate % | 5.20% | |
Shares Outstanding | 9,000 | 9,000 |
Liquidation Preference | $ 225,000 | $ 225,000 |
Series Y Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Mar. 17, 2019 | |
Dividend Rate % | 6.375% | |
Shares Outstanding | 11,400 | 11,400 |
Liquidation Preference | $ 285,000 | $ 285,000 |
Series Z Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Jun. 4, 2019 | |
Dividend Rate % | 6.00% | |
Shares Outstanding | 11,500 | 11,500 |
Liquidation Preference | $ 287,500 | $ 287,500 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Earliest Redemption Date | Dec. 2, 2019 | |
Dividend Rate % | 5.875% | |
Shares Outstanding | 7,600 | 7,600 |
Liquidation Preference | $ 190,000 | $ 190,000 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | |
Related Party Transaction [Line Items] | ||
Hughes Family percentage ownership of common shares outstanding | 14.40% | |
PS Canada [Member] | ||
Related Party Transaction [Line Items] | ||
Number of self-storage facilities Hughes Family owns and operates in Canada | 54 | |
Tenants reinsurance premiums earned by Public Storage from the Canadian facilities Hughes Family has an interest in | $ | $ 0.4 | $ 0.4 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options) (Narrative) (Details) - Stock Options [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period, number of years | 10 years | ||||
Compensation expense | $ 0.9 | $ 0.8 | $ 2.4 | $ 2.1 | |
Stock options granted | 285,000 | ||||
Stock options exercised | 310,745 | ||||
Stock options forfeited | 115,000 | ||||
Stock options outstanding | 1,944,799 | 1,944,799 | 2,085,544 | ||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 5 years | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 3 years |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Units) (Narrative) (Details) - Restricted Share Units [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted share units granted | 146,280 | ||||
Restricted share units forfeited | 58,180 | ||||
Restricted share units vested | 166,331 | ||||
Tax deposits made in exchange for RSUs | $ 13.7 | ||||
Common shares issued upon vesting | 97,401 | ||||
Common shares withheld upon vesting in exchange for tax deposits | 68,930 | ||||
Restricted share units outstanding | 672,817 | 672,817 | 751,048 | ||
Restricted share unit expense | $ 9 | $ 8 | $ 22 | $ 20 | |
Taxes incurred upon vesting of restricted share units | $ 0.1 | $ 0.1 | $ 1 | $ 1.1 | |
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 8 years | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 3 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | Sep. 30, 2015 | Dec. 31, 2014 |
PSB [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest, percentage | 42.00% | 42.00% |
Shurgard Europe [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest, percentage | 49.00% |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Self-storage facilities | $ 580,976 | $ 534,271 | $ 1,662,641 | $ 1,520,661 |
Ancillary operations | 37,896 | 32,819 | 109,725 | 94,954 |
Total revenues | 618,872 | 567,090 | 1,772,366 | 1,615,615 |
Self-storage cost of operations | 152,010 | 146,979 | 461,078 | 445,474 |
Ancillary cost of operations | 12,676 | 11,589 | 36,715 | 35,473 |
Total Cost of Operations | 164,686 | 158,568 | 497,793 | 480,947 |
Net Operating Income - Self-Storage Operations | 428,966 | 387,292 | 1,201,563 | 1,075,187 |
Net Operating Income - Ancillary Operations | 25,220 | 21,230 | 73,010 | 59,481 |
Total Net Operating Income | 454,186 | 408,522 | 1,274,573 | 1,134,668 |
Depreciation and amortization | (106,082) | (111,077) | (319,701) | (326,541) |
General and administrative | (23,573) | (17,874) | (68,721) | (52,240) |
Interest and other income | 3,659 | 3,830 | 11,509 | 13,674 |
Interest expense | (1,238) | (6,781) | ||
Equity in earnings of unconsolidated real estate entities | 12,603 | 14,566 | 36,267 | 43,305 |
Foreign currency exchange loss | (3,012) | (7,035) | ||
Gain on real estate sales | 343 | 1,260 | 18,503 | 2,479 |
Net income | 341,136 | 294,977 | 952,430 | 801,529 |
Self-Storage Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Self-storage facilities | 580,976 | 534,271 | 1,662,641 | 1,520,661 |
Total revenues | 580,976 | 534,271 | 1,662,641 | 1,520,661 |
Self-storage cost of operations | 152,010 | 146,979 | 461,078 | 445,474 |
Total Cost of Operations | 152,010 | 146,979 | 461,078 | 445,474 |
Net Operating Income - Self-Storage Operations | 428,966 | 387,292 | 1,201,563 | 1,075,187 |
Total Net Operating Income | 428,966 | 387,292 | 1,201,563 | 1,075,187 |
Depreciation and amortization | (106,082) | (111,077) | (319,701) | (326,541) |
Net income | 322,884 | 276,215 | 881,862 | 748,646 |
Ancillary Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Ancillary operations | 37,896 | 32,819 | 109,725 | 94,954 |
Total revenues | 37,896 | 32,819 | 109,725 | 94,954 |
Ancillary cost of operations | 12,676 | 11,589 | 36,715 | 35,473 |
Total Cost of Operations | 12,676 | 11,589 | 36,715 | 35,473 |
Net Operating Income - Ancillary Operations | 25,220 | 21,230 | 73,010 | 59,481 |
Total Net Operating Income | 25,220 | 21,230 | 73,010 | 59,481 |
Net income | 25,220 | 21,230 | 73,010 | 59,481 |
Invesment in PSB [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 10,323 | 5,513 | 25,734 | 15,165 |
Net income | 10,323 | 5,513 | 25,734 | 15,165 |
Investment In Shurgard Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 1,616 | 8,363 | 8,707 | 26,626 |
Net income | 1,616 | 8,363 | 8,707 | 26,626 |
Other Items Not Allocated To Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative | (23,573) | (17,874) | (68,721) | (52,240) |
Interest and other income | 3,659 | 3,830 | 11,509 | 13,674 |
Interest expense | (1,238) | (6,781) | ||
Equity in earnings of unconsolidated real estate entities | 664 | 690 | 1,826 | 1,514 |
Foreign currency exchange loss | (3,012) | (7,035) | ||
Gain on real estate sales | 343 | 1,260 | 18,503 | 2,479 |
Net income | $ (18,907) | $ (16,344) | $ (36,883) | $ (48,389) |
Commitments And Contingencies (
Commitments And Contingencies (Details) | Sep. 30, 2015USD ($)item |
Commitments And Contingencies [Abstract] | |
Aggregate limit for property coverage | $ 75,000,000 |
Aggregate limit for general liability coverage | 102,000,000 |
Tenant insurance program against claims, maximum amount | $ 5,000 |
Tenant certificate holders participating in insurance program, approximate | item | 880,000 |
Aggregate coverage of tenants participating in insurance program | $ 2,500,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) € in Millions, ft² in Millions, $ in Millions | Nov. 03, 2015EUR (€) | Nov. 04, 2015USD ($)ft²item | Sep. 30, 2015USD ($) |
Subsequent Event [Line Items] | |||
fixed note rate | 4.10% | ||
Acquisition Cost, Real Estate Facilities | $ | $ 113.5 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 11 | ||
Net rentable square feet | ft² | 0.8 | ||
Acquisition Cost, Real Estate Facilities | $ | $ 107.7 | ||
Subsequent Event [Member] | Private Transaction [Member] | |||
Subsequent Event [Line Items] | |||
Senior Unsecured Notes maturity term | 10 years | ||
Subsequent Event [Member] | Private Transaction [Member] | Senior Notes [Member] | |||
Subsequent Event [Line Items] | |||
Unsecured Notes | € | € 242 | ||
fixed note rate | 2.175% | ||
Texas [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 2 | ||
California [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 1 | ||
Florida [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 8 |