Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 173,401,388 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 260,124 | $ 104,285 |
Real estate facilities, at cost: | ||
Land | 3,686,289 | 3,564,810 |
Buildings | 9,884,371 | 9,640,451 |
Real estate facilities, gross | 13,570,660 | 13,205,261 |
Accumulated depreciation | (5,064,423) | (4,866,738) |
Real estate facilities, net | 8,506,237 | 8,338,523 |
Construction in process | 228,103 | 219,190 |
Total real estate facilities | 8,734,340 | 8,557,713 |
Investments in unconsolidated real estate entities | 696,069 | 809,308 |
Goodwill and other intangible assets, net | 213,396 | 211,458 |
Other assets | 93,208 | 95,468 |
Total assets | 9,997,137 | 9,778,232 |
LIABILITIES AND EQUITY | ||
Senior unsecured notes | 379,792 | 263,940 |
Mortgage notes | 57,043 | 55,076 |
Preferred shares called for redemption (Note 7) | 487,500 | |
Accrued and other liabilities | 305,769 | 261,578 |
Total liabilities | 1,230,104 | 580,594 |
Commitments and contingencies (Note 11) | ||
Public Storage shareholders' equity: | ||
Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 147,700 shares issued (in series) and outstanding, (162,200 at December 31, 2015), at liquidation preference | 3,692,500 | 4,055,000 |
Common Shares, $0.10 par value, 650,000,000 shares authorized, 173,098,015 shares issued and outstanding (172,921,241 shares at December 31, 2015) | 17,310 | 17,293 |
Paid-in capital | 5,598,846 | 5,601,506 |
Accumulated deficit | (491,912) | (434,610) |
Accumulated other comprehensive loss | (78,991) | (68,548) |
Total Public Storage shareholders’ equity | 8,737,753 | 9,170,641 |
Noncontrolling interests | 29,280 | 26,997 |
Total equity | 8,767,033 | 9,197,638 |
Total liabilities and equity | $ 9,997,137 | $ 9,778,232 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in series) | 147,700 | 162,200 |
Preferred stock, shares outstanding | 147,700 | 162,200 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 650,000,000 | 650,000,000 |
Common stock, shares issued | 173,098,015 | 172,921,241 |
Common stock, shares outstanding | 173,098,015 | 172,921,241 |
Statements Of Income
Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Self-storage facilities | $ 594,387 | $ 551,028 | $ 1,168,973 | $ 1,081,665 |
Ancillary operations | 39,801 | 37,587 | 77,001 | 71,829 |
Total revenues | 634,188 | 588,615 | 1,245,974 | 1,153,494 |
Expenses: | ||||
Self-storage cost of operations | 157,687 | 147,826 | 317,550 | 309,068 |
Ancillary cost of operations | 14,317 | 13,271 | 27,740 | 24,041 |
Depreciation and amortization | 107,013 | 106,473 | 212,141 | 213,619 |
General and administrative | 18,321 | 20,988 | 41,368 | 45,148 |
Operating expenses | 297,338 | 288,558 | 598,799 | 591,876 |
Operating income | 336,850 | 300,057 | 647,175 | 561,618 |
Interest and other income | 4,028 | 3,815 | 7,864 | 7,852 |
Interest expense | (1,378) | (2,089) | ||
Equity in earnings of unconsolidated real estate entities | 10,227 | 7,480 | 24,391 | 23,664 |
Foreign currency exchange gain (loss) | 8,632 | (2,322) | ||
Gain on real estate investment sales | 16,688 | 689 | 18,160 | |
Net income | 358,359 | 328,040 | 675,708 | 611,294 |
Allocation to noncontrolling interests | (1,700) | (1,635) | (3,176) | (3,108) |
Net income allocable to Public Storage shareholders | 356,659 | 326,405 | 672,532 | 608,186 |
Allocation of net income to: | ||||
Preferred shareholders | (59,216) | (61,449) | (121,488) | (125,004) |
Preferred shareholders - redemptions (Note 7) | (15,537) | (26,873) | (4,784) | |
Restricted share units | (1,131) | (1,030) | (2,061) | (1,859) |
Net income allocable to common shareholders | $ 280,775 | $ 263,926 | $ 522,110 | $ 476,539 |
Net income per common share: | ||||
Basic | $ 1.62 | $ 1.53 | $ 3.02 | $ 2.76 |
Diluted | $ 1.61 | $ 1.52 | $ 3 | $ 2.75 |
Basic weighted average common shares outstanding | 173,087 | 172,629 | 173,032 | 172,575 |
Diluted weighted average common shares outstanding | 174,000 | 173,387 | 173,925 | 173,377 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Comprehensive Income [Abstract] | ||||
Net income | $ 358,359 | $ 328,040 | $ 675,708 | $ 611,294 |
Other comprehensive income (loss): | ||||
Aggregate foreign currency exchange income (loss) | (4,681) | 17,049 | (11,824) | (13,367) |
Adjust for foreign currency exchange (income) loss included in net income | (6,537) | 1,381 | ||
Other comprehensive income (loss) | (11,218) | 17,049 | (10,443) | (13,367) |
Total comprehensive income | 347,141 | 345,089 | 665,265 | 597,927 |
Allocation to noncontrolling interests | (1,700) | (1,635) | (3,176) | (3,108) |
Comprehensive income allocable to Public Storage shareholders | $ 345,441 | $ 343,454 | $ 662,089 | $ 594,819 |
Statements Of Equity
Statements Of Equity - 6 months ended Jun. 30, 2016 - 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, 2015 | $ 4,055,000 | $ 17,293 | $ 5,601,506 | $ (434,610) | $ (68,548) | $ 9,170,641 | $ 26,997 | $ 9,197,638 |
Cumulative effect of a change in accounting principle (Note 9) at Dec. 31, 2015 | 789 | (789) | ||||||
Balances, as adjusted at Dec. 31, 2015 | 4,055,000 | 17,293 | 5,602,295 | (435,399) | (68,548) | 9,170,641 | 26,997 | 9,197,638 |
Issuance of preferred shares (Note 7) | 500,000 | (16,322) | 483,678 | 483,678 | ||||
Redemption of preferred shares (Note 7) | (862,500) | (862,500) | (862,500) | |||||
Issuance of common shares in connection with share-based compensation (Note 9) | 17 | 10,708 | 10,725 | 10,725 | ||||
Cash paid in lieu of common shares, net of share-based compensation expense (Note 9) | 2,165 | 2,165 | 2,165 | |||||
Contributions by noncontrolling interests | 2,747 | 2,747 | ||||||
Net income | 675,708 | 675,708 | 675,708 | |||||
Net income allocated to noncontrolling interests | (3,176) | (3,176) | 3,176 | (3,176) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 7) | (121,488) | (121,488) | (121,488) | |||||
Noncontrolling interests | (3,640) | (3,640) | ||||||
Common shares and restricted share units | (607,557) | (607,557) | (607,557) | |||||
Other comprehensive loss (Note 2) | (10,443) | (10,443) | (10,443) | |||||
Balances at Jun. 30, 2016 | $ 3,692,500 | $ 17,310 | $ 5,598,846 | $ (491,912) | $ (78,991) | $ 8,737,753 | $ 29,280 | $ 8,767,033 |
Statements Of Equity (Parenthet
Statements Of Equity (Parenthetical) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Statements Of Equity [Abstract] | |
Issuance of preferred shares, shares | 20,000 |
Redemption of preferred shares, shares | 34,500 |
Issuance of common shares in connection with share-based compensation, shares | 176,774 |
Common shares, per share distribution | $ / shares | $ 3.50 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 675,708 | $ 611,294 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on real estate investment sales | (689) | (18,160) |
Depreciation and amortization | 212,141 | 213,619 |
Equity in earnings of unconsolidated real estate entities | (24,391) | (23,664) |
Distributions from retained earnings of unconsolidated real estate entities | 60,587 | 16,361 |
Foreign currency exchange loss | 2,322 | |
Other | 39,036 | 40,175 |
Total adjustments | 289,006 | 228,331 |
Net cash provided by operating activities | 964,714 | 839,625 |
Cash flows from investing activities: | ||
Capital expenditures to maintain real estate facilities | (38,236) | (29,757) |
Construction in process | (134,998) | (100,393) |
Acquisition of real estate facilities and intangible assets | (184,657) | (87,783) |
Distributions in excess of retained earnings from unconsolidated real estate entities | 67,420 | |
Proceeds from sales of real estate investments | 1,393 | 13,929 |
Other | 1,283 | 16,030 |
Net cash used in investing activities | (287,795) | (187,974) |
Cash flows from financing activities: | ||
Borrowings on bank credit facility | 11,000 | |
Repayments on notes payable | (10,592) | (16,282) |
Issuance of senior unsecured notes | 113,620 | |
Issuance of preferred shares | 483,678 | |
Issuance of common shares | 10,725 | 10,488 |
Redemption of preferred shares | (375,000) | (145,000) |
Cash paid upon vesting in lieu of issuing common shares | (13,304) | (13,591) |
Contributions by noncontrolling interests | 2,747 | |
Distributions paid to Public Storage shareholders | (729,045) | (661,633) |
Distributions paid to noncontrolling interests | (3,640) | (3,191) |
Net cash used in financing activities | (520,811) | (818,209) |
Net increase (decrease) in cash and cash equivalents | 156,108 | (166,558) |
Net effect of foreign exchange translation on cash and cash equivalents | (269) | (898) |
Cash and cash equivalents at the beginning of the period | 104,285 | 187,712 |
Cash and cash equivalents at the end of the period | 260,124 | 20,256 |
Foreign currency translation adjustment: | ||
Real estate facilities, net of accumulated depreciation | 641 | (119) |
Investments in unconsolidated real estate entities | 8,682 | 12,588 |
Senior unsecured notes | 2,232 | |
Accumulated other comprehensive loss | (11,824) | (13,367) |
Preferred shares called for redemption and reclassified to liabilities | 487,500 | |
Preferred shares called for redemption and reclassified from equity | (487,500) | |
Real estate acquired in exchange for assumption of note payable | (12,945) | |
Note payable assumed in connection with acquisition of real estate | 12,945 | |
Accrued construction costs and capital expenditures: | ||
Capital expenditures to maintain real estate facilities | (6,709) | (2,704) |
Construction in process | (10,904) | 308 |
Accrued and other liabilities | $ 17,613 | $ 2,396 |
Description Of The Business
Description Of The Business | 6 Months Ended |
Jun. 30, 2016 | |
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 (“REIT”) , 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 June 30 , 2016, we have direct and indirect equity interests in 2, 310 self-storage facilities (with approximately 1 51 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 217 self-storage facilities (with approximately 12 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 nine states in the U.S. primarily owned and operated by PS Business Parks, Inc. (“PSB”) under the “PS Business Parks” name. At June 30, 2016 , 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 (Note 11) 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 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, 2015. Certain amounts previously reported in our June 30, 2015 financial statements have been reclassified to conform to the June 30, 2016 presentation. We reclassified the revenues and cost of operations, net for our wholly-owned commercial facilities and property management operations as interest and other income (aggregates of approximately $ 4.0 million and $ 1.1 million for the three months ended June 30, 2015, respectively, and $8.5 million and $ 2.3 million for the six months ended June 30, 2015, respectively), rather than as ancillary revenues and ancillary cost of operations. We also revised our reportable segment presentation in Note 10, 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. On our statement of cash flows for the six months ended June 30, 2015, we reclassified as cash flows from financing activities the $13. 6 million we paid for the restricted share units that we withheld upon their vesting for tax requirements, in connection with a recently issued accounting pronouncement related to employee share-based payment accounting we early adopted effective January 1, 2016. We previously included these amounts within operating activities (see “Recent Accounting Pronouncements and Guidance” below). 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 the equity holders as a group do not have a controlling financial interest. We consolidate VIEs when we have (i) the power to direct the activities most significantly impacting economic performance, and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. We have no involvement with any material VIEs. We consolidate all other entities when we control them through voting shares or contractual rights. The entities we consolidate, 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 do not consolidate but have significant influence over 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 begin consolidating an entity, we record a gain representing the differential between the book value and fair value of any preexisting equity interest. All changes in consolidation status are reflected prospectively. Collectively, at June 30, 2016, the Company and the Subsidiaries own 2,298 self-storage facilities in the U.S., one self-storage facility in London, England and three commercial facilities in the U.S. At June 30, 2016, 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 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 each year, and if we meet certain organizational and operational rules. We believe we have met these REIT requirements for all 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 June 30, 2016, 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, and we believe that the fair value of our accrued and other liabilities approximates book value, due to the short period until repayment. 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. We believe that the book value of all such financial instruments for all periods presented approximates fair value, due to the short period to maturity. 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 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. Our estimates of fair value involve considerable judgment and are not necessarily indicative of the amounts that could be realized in current market exchanges. We estimate the fair value of our cash and cash equivalents, marketable securities, other assets, debt, and other liabilities by applying a discount rate to the future cash flows of the financial instrument. The discount rate is based upon quoted interest rates for securities that have similar characteristics such as credit quality and time to maturity ; such quoted interest rates are referred to generally as “Level 2” inputs. Currency and Credit Risk Financial instruments that are exposed to credit risk consist primarily of cash and cash equivalents, certain portions of other assets including rents 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 June 30, 2016, due primarily to our investment in Shurgard Europe (Note 4) and our senior unsecured notes denominated in Euros (Note 5), 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 June 30, 2016 and December 31, 2015. 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 June 30, 2016 and December 31, 2015. 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 June 30, 2016, these intangibles had a net book value of $19. 9 million ( $18.0 million at December 31, 2015). Accumulated amortization totaled $5 1.9 million at June 30, 2016 ( $66.4 million at December 31, 2015), and amortization expense of $ 10.5 million and $ 15.9 million was recorded in the six months ended June 30, 2016 and 2015, respectively. The estimated future amortization expense for our finite-lived intangible assets at June 30, 2016 is approximately $7.5 million in the remainder of 2016, $5.6 million in 2017 and $6. 8 million thereafter. During the six months ended June 30, 2016, intangibles were increased $ 12.5 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 rental 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 when bills or assessments have not been received from the taxing authorities. 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 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 1.110 U.S. Dollars per Euro at June 30, 2016 ( 1.091 at December 31, 2015), and average exchange rates of 1.129 and 1.1 06 for the three months ended June 30, 2016 and 2015, respectively, and an average exchange rate of 1.116 for the each of six month periods ended June 30, 2016 and 2015. 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 primarily related to our investment in Shurgard Europe and our senior unsecured notes denominated in Euros. Recent Accounting Pronouncements and Guidance In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , which requires revenue to be based upon the consideration expected from customers for promised goods 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 2015-02, Consolidation – Amendments to the Consolidation Analysis , 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. We adopted this standard effective January 1, 2016 , which did not change the consolidation status of any entities in which we have an interest; however, certain entities began to be considered VIE’s as a result of the change. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard, effective on January 1, 2019, requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief and allows for early adoption on January 1, 2016. We have not yet determined whether this standard will have a material effect on our results of operations or financial condition. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . We early adopted this standard effective January 1, 2016. Under this standard, a share-based compensation-related tax liability paid on behalf of employees in lieu of shares received is classified as a financing activity on the statement of cash flows, rather than as an operating activity as we had previously presented such amounts. We applied this provision retrospectively. The standard also allows a company to choose, with respect to recording share-based expense, between (i) recognizing forfeitures only as they occur or (ii) estimating future forfeitures in advance. We chose to recognize forfeitures only as they occur, rather than estimating in advance, accordingly, effective January 1, 2016, under the modified retrospective transition method as required by the standard, we recorded a cumulative-effect adjustment of $0.8 million to increase accumulated deficit and increase paid-in capital for the impact of estimated future forfeitures after December 31, 2015 (Note 9). 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 (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 and diluted per common share are each calculated based upon net income allocable to common shareholders presented on the face of our income statement, divided by (i) in the case of basic net income per common share, weighted average common shares, and (ii) in the case of diluted income per share, weighted average common shares adjusted for the impact, if dilutive, of stock options outstanding (Note 9). The following table reconciles from basic to diluted common shares outstanding: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Amounts in thousands) Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 173,087 172,629 173,032 172,575 Net effect of dilutive stock options - based on treasury stock method 913 758 893 802 Diluted weighted average common shares outstanding 174,000 173,387 173,925 173,377 |
Real Estate Facilities
Real Estate Facilities | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Facilities [Abstract] | |
Real Estate Facilities | 3. Real Estate Facilities Activity in real estate facilities during the six months ended June 30, 2016 is as follows : Six Months Ended June 30, 2016 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 13,205,261 Capital expenditures to maintain real estate facilities 44,945 Acquisitions 185,150 Newly developed facilities opened for operation 136,989 Impact of foreign exchange rate changes (1,685) Ending balance 13,570,660 Accumulated depreciation: Beginning balance (4,866,738) Depreciation expense (198,729) Impact of foreign exchange rate changes 1,044 Ending balance (5,064,423) Construction in process: Beginning balance 219,190 Current development 145,902 Newly developed facilities opened for operation (136,989) Ending balance 228,103 Total real estate facilities at June 30, 2016 $ 8,734,340 During the six months ended June 30, 2016, we acquired 24 self-storage facilities ( 1,703,000 net rentable square feet), for a total cost of $197. 6 million, consisting of $ 184.7 million in cash and the assumption of $12.9 million in mortgage debt. Approximately $ 12.5 million of the total cost was allocated to intangible assets. We completed expansion and development activities during the six months ended June 30, 2016, adding 1,269,000 net rentable square feet of self-storage space, at an aggregate cost of $ 137.0 million. Construction in process at June 30, 2016 consists of projects to develop new self-storage facilities and expand existing self-storage facilities, which would add a total of 4.9 million net rentable square feet of storage space, for an aggregate estimated cost of approximately $6 30.7 million . |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Entities | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 December 31, 2015 PSB $ 407,954 $ 414,450 Shurgard Europe 281,674 388,367 Other Investments (A) 6,441 6,491 Total $ 696,069 $ 809,308 Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 PSB $ 7,869 $ 5,516 $ 15,200 $ 15,411 Shurgard Europe 1,706 1,355 7,942 7,091 Other Investments (A) 652 609 1,249 1,162 Total $ 10,227 $ 7,480 $ 24,391 $ 23,664 (A) At June 30, 2016 and December 31, 2015, the “Other Investments” include an average 26% common equity ownership in limited partnerships that collectively own 12 self-storage facilities. In the six months ended June 30, 2016, we sold one of the Other Investments resulting in a $0.7 million gain on real estate investment sales on our income statement. During the six months ended June 30, 2016 and 2015, we received cash distributions from our investments in the Unconsolidated Real Estate Entities totaling $ 128.0 million and $ 16.4 million, respectively. For the six months ended June 30, 2016, $ 67.4 million of the distributions received exceeded the retained earnings of the Unconsolidated Real Estate Entities and are presented as an investing activity on our statement of cash flows. At June 30, 2016, the cost of our investment in the Unconsolidated Real Estate Entities exceeds our pro rata share of the underlying equity by approximately $59 million ( $62 million at December 31, 2015). 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 $0. 9 million and $ 1.1 million during the six months ended June 30, 2016 and 2015, 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 June 30, 2016 and December 31, 2015, 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 June 30, 2016 ( $10 6.08 per share of PSB common stock), the shares and units we owned had a market value of approximately $1.5 billion. The following table sets forth selected financial information of PSB. The amounts represent all of PSB’s balances and not our pro-rata share. June 30, December 31, 2016 2015 (Amounts in thousands) Total assets (primarily real estate) $ 1,982,082 $ 2,186,658 Debt 54,000 250,000 Other liabilities 74,335 76,059 Equity: Preferred stock 920,000 920,000 Common equity and LP units 933,747 940,599 2016 2015 (Amounts in thousands) For the six months ended June 30, Total revenue $ 192,191 $ 185,543 Costs of operations (61,644) (61,803) Depreciation and amortization (50,255) (53,258) General and administrative (9,012) (6,896) Other items (4,877) (6,409) Gain on sale of facilities - 12,487 Net income 66,403 69,664 Allocations to preferred shareholders and restricted share unitholders (27,924) (30,384) Net income allocated to common shareholders and LP Unitholders $ 38,479 $ 39,280 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. Our equity in earnings of Shurgard Europe is comprised of our 49% share of Shurgard Europe’s net income, plus 49% of the trademark license fees that Shurgard Europe pays to us for the use of the “Shurgard” trademark. The remaining 51% of the license fees paid to us are classified as interest and other income on our income statement. Changes in foreign currency exchange rates caused our investment in Shurgard Europe to decrease by approximately $ 8.7 million and $ 12.6 million in the six months ended June 30, 2016 and 2015, respectively. Included in our equity in earnings of Shurgard Europe for the six months ended June 30, 2016, is an increase of $0.9 million for the recognition of accumulated comprehensive income, representing a decrease to equity rather than an increase to investments in unconsolidated real estate entities. 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. June 30, December 31, 2016 2015 (Amounts in thousands) Total assets (primarily self-storage facilities) $ 1,355,170 $ 1,476,632 Total debt to third parties 743,016 662,336 Other liabilities 123,451 110,522 Equity 488,703 703,774 Exchange rate of Euro to U.S. Dollar 1.110 1.091 2016 2015 (Amounts in thousands) For the six months ended June 30, Self-storage and ancillary revenues $ 125,546 $ 112,683 Self-storage and ancillary cost of operations (49,828) (44,244) Depreciation and amortization (34,555) (29,339) General and administrative and income tax expense (a) (12,656) (9,987) Interest expense on third party debt (10,381) (6,929) Trademark license fee payable to Public Storage (1,265) (1,128) Foreign exchange gain and other, net (b) (1,919) (7,713) Net income $ 14,942 $ 13,343 Average exchange rates of Euro to the U.S. Dollar 1.116 1.116 (a) Amounts include approximately $ 5.7 million and $ 3.4 million for the six months ended June 30, 2016 and 2015, respectively, in income tax expense . (b) A mounts during the six months ended June 30, 2016 include a $ 1.9 million foreign exchange gain on a repaid intercompany note between entities consolidated by Shurgard Europe, and amounts d uring the same period in 2015 include $6.9 million in costs associated with the acquisition of real estate facilities . |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Borrowings [Abstract] | |
Borrowings | 5 . Borrowings Credit Facility We have a revolving credit agreement (the “Credit Facility”) with an aggregate borrowing limit totaling $500 million, which expires on March 31, 2020 . 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 June 30, 2016). 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 June 30, 2016) . At June 30, 2016 and August 4, 2016, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $15.2 million at June 30, 2016 ($ 14.9 million at December 31, 2015). The Credit Facility has various customary restrictive covenants, all of which we were in compliance with at June 30, 2016. Senior Unsecured Notes At June 30, 2016 and December 31, 2015, we had €342.0 million ( $379.8 million) and €242.0 million ( $263.9 million), respectively, of Euro-denominated senior unsecured notes payable to institutional investors (collectively, the “Senior Unsecured Notes”). The Senior Unsecured Notes consist s of two tranches , (i) € 242.0 million ( 2.175% fixed rate of interest) which matures in November 2025 and (ii) €100.0 million ( 1.54% fixed rate of interest), which was issued on April 12, 2016 for $113.6 million in net proceeds upon converting the Euros to U.S. Dollars, which matures in April 2024 . The fair value of our Senior Unsecured Notes was approximately $395.0 million at June 30, 2016 ( $ 263.9 million at December 31, 2015). We reflect changes in the U.S. Dollar equivalent of the amount payable, as a result of changes in foreign exchange rates as “foreign currency exchange gain (loss)” on our income statement (an $ 8.6 million gain and a $ 2.2 million loss for the three and six months ended June 30, 2016, respectively). The Senior Unsecured Notes have various customary financial covenants, all of which we were in compliance with at June 30, 2016. Mortgage Notes During the six months ended June 30 , 2016 , we assumed mortgage debt with contractual values and interest rates of $12.9 million and of 4.2% , respectively, which approximated market rates, in connection with the acquisition of real estate facilities. The carrying amounts of our mortgage notes (the “Mortgage Notes”) at June 30, 2016 and December 31, 2015, totaled $ 57.0 million and $55.1 million, respectively, which approximates contractual note values and estimated fair values . 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 June 30, 2016, the notes are secured by 35 real estate facilities with a net book value of approximately $1 81.0 million , have contractual interest rates between 2.9% and 7.1 % , and mature between October 2016 and September 2028 . At June 30 , 2016, approximate principal maturities of our Senior Unsecured Notes and Mortgage Notes are (amounts in thousands): Senior Mortgage Unsecured Notes Notes Total Remainder of 2016 $ - $ 18,236 $ 18,236 2017 - 9,434 9,434 2018 - 11,333 11,333 2019 - 1,505 1,505 2020 - 1,585 1,585 Thereafter 379,792 14,950 394,742 $ 379,792 $ 57,043 $ 436,835 Weighted average effective rate 2.0% 4.2% 2.3% Cash paid for interest totaled $ 4.7 million and $ 1.5 million for the six months ended June 30, 2016 and 2015, respectively. Interest capitalized as real estate totaled $ 2.6 million and $ 1.2 million for the six months ended June 30, 2016 and 2015, respectively . |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2016 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | 6. Noncontrolling Interests At June 30 , 2016, 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 June 30, 2016, the Noncontrolling Interests cannot require us to redeem their interests, other than pursuant to a liquidation of the subsidiary. During the six months ended June 30, 2016 and 2015, we allocated a total of $3. 2 million and $3.1 million, respectively, of income to these interests; and we paid $ 3.6 million and $ 3.2 million, respectively, in distributions to these interests. During the six months ended June 30, 2016, Noncontrolling Interests contributed $2. 7 million ( none during the six months ended June 30, 2015). |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Shareholders’ Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Preferred Shares At June 30, 2016 and December 31, 2015, we had the following series of Cumulative Preferred Shares (“ Preferred Shares”) outstanding: At June 30, 2016 At December 31, 2015 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series Q 4/14/2016 6.500% - $ - 15,000 $ 375,000 Series R 7/26/2016 6.350% - - 19,500 487,500 Series S 1/12/2017 5.900% 18,400 460,000 18,400 460,000 Series T 3/13/2017 5.750% 18,500 462,500 18,500 462,500 Series U 6/15/2017 5.625% 11,500 287,500 11,500 287,500 Series V 9/20/2017 5.375% 19,800 495,000 19,800 495,000 Series W 1/16/2018 5.200% 20,000 500,000 20,000 500,000 Series X 3/13/2018 5.200% 9,000 225,000 9,000 225,000 Series Y 3/17/2019 6.375% 11,400 285,000 11,400 285,000 Series Z 6/4/2019 6.000% 11,500 287,500 11,500 287,500 Series A 12/2/2019 5.875% 7,600 190,000 7,600 190,000 Series B 1/20/2021 5.400% 12,000 300,000 - - Series C 5/17/2021 5.125% 8,000 200,000 - - Total Preferred Shares 147,700 $ 3,692,500 162,200 $ 4,055,000 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 board of trustees (the “Board”) until the arrearage has been cured. At June 30, 2016, 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. In March 2015, we called for redemption of, and on April 15, 2015, we redeemed our 6.875% Series O Preferred Shares, at par. We recorded a $4.8 million EITF D-42 allocation of income from our common shareholders to the holders of our Preferred Shares in the six months ended June 30, 2015 in connection with this redemption. On January 20, 2016, we issued 12.0 million depositary shares, each representing 1/1 ,000 of a share of our 5.40% Series B Preferred Shares, at an issuance price of $25.00 per depositary share, for a total of $300.0 million in gross proceeds, and we incurred $9.9 million in issuance costs. On May 17, 2016, we issued 8.0 million depositary shares, each representing 1/1 ,000 of a share of our 5.125% Series C Preferred Shares, at an issuance price of $25.00 per depositary share, for a total of $200.0 million in gross proceeds, and we incurred $6.4 million in issuance costs. In March 2016, we called for redemption of, and on April 15, 2016, we redeemed our 6.500% Series Q Preferred Shares, at par. We recorded a $11.3 million allocation of income from our common shareholders to the holders of our Preferred Shares in the six months ended June 30, 2016 in connection with this redemption. In June 2016, we called for redemption of, and on July 26, 2016, we redeemed our 6.350% Series R Preferred Shares, at par. The liquidation value (at par) of $487.5 million was reclassified as a liability at June 30, 2016. We recorded a $15.5 million allocation of income from our common shareholders to the holders of our Preferred Shares in the three and six months ended June 30, 2016 in connection with this redemption. Distributions Common share dividends, including amounts paid to our restricted share unitholders, totaled $312.5 million ( $1.80 per share) and $294.3 million ( $1.70 per share) for the three months ended June 30, 2016 and 2015, respectively, and $607.6 million ( $3.50 per share) and $536.6 million ( $3.10 per share) for the six months ended June 30, 2016 and 2015, respectively. Preferred share dividends totaled $59.2 million and $61.4 million for the three months ended June 30, 2016 and 2015, respectively, and $121.5 million and $125.0 million for the six months ended June 30, 2016 and 2015, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8 . Related Party Transactions B. Wayne Hughes, our former Chairman and his family, including his daughter Tamara Hughes Gustavson and his son B. Wayne Hughes, Jr., who are both members of our Board of Trustees, collectively own approximately 14.3% of our common shares outstanding at June 30, 2016. At June 30, 2016, B. Wayne Hughes and Tamara Hughes Gustavson together owned and controlled 56 self-storage facilities in Canada. These facilities operate under the “Public Storage” tradename, which we license to the owners of these facilities for use in Canada on a roy alty-free, non-exclusive basis. Our subsidiaries reinsure risks relating to loss of goods stored by customers in these facilities, and have received approximately $0.3 million and $0.2 million for the six months ended June 30 , 2016 and 2015 , respectively. Our right to continue receiving these premiums may be qualified. We have no ownership interest in these facilities and we do not own or op erate any facilities in Canada. If we chose to acquire or develop our own facilities in Canada, we would have to share the use of the “Public Storage” name in Canada with the facilities’ owners. We have a right of first refusal, subject to limitations, to acquire the stock or assets of the corporation engaged in the operation of these facilities (“PS Canada”) if their owners agree to sell them. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation Under various share-based compensation plans and under terms established by our Board of Trustees or a committee thereof, we grant non-qualified options to purchase the Company’s common shares, as well as restricted share units (“RSUs”), to trustees, officers, 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. As noted under “Recent Accounting Pronouncements and Guidance” in Note 2, we have elected to account for forfeitures of share-based payments as they occur, rather than estimating them in advance. Accordingly, we recorded a cumulative-effect adjustment of $0.8 million to increase accumulated deficit and increase paid-in capital as of January 1, 2016, representing the impact of estimated forfeitures on our cumulative share-based compensation expense recorded through December 31, 2015. We amortize the grant-date fair value of awards as compensation expense over the service period, which 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). 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. 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 six months ended June 30 , 2016, we recorded $1.0 million and $1. 9 million, respectively, in compensation expense related to stock options, as compared to $0.8 million and $1.5 million, for the same period s in 2015. During the six months ended June 30 , 2016 , 235,000 stock options were granted, 95,344 options were exercised and no options were forfeited. A total of 2,0 79,935 stock options were outstanding at June 30 , 2016 ( 1,940,279 at December 31, 2015). Restricted Share Units RSUs generally vest ratably over a five to eight -year period from the grant date. The grantee receives dividends f or 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 six months ended June 30, 2016, 129,624 RSUs were granted, 12,132 RSUs were forfeited and 134 ,763 RSUs vested. This vesting resulted in the issuance of 81,430 common shares. In addition, tax deposits totaling $13. 3 million ($13.6 million for the same period in 2015) were made on behalf of employees in exchange for 53,333 common shares withheld upon vesting. RSUs outstanding at June 30, 2016 and December 31, 2015 were 7 20,117 and 737,388 , respectively. A total of $7. 5 million and $ 14.5 million in RSU expense was recorded for the three and six months ended June 30, 2016, which includes approximately $0.1 million and $1.0 million, respectively, in employer taxes incurred upon vesting, as compared to $6.6 million and $13.0 million for the same periods in 2015, which includes approximately $0.1 million and $1.0 million , respectively, in employer taxes incurred upon vesting. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information [Abstract] | |
Segment Information | 10. Segment Information Our reportable segments reflect the significant components of our operations where discrete 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 June 30, 2016 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 $ 594,387 $ - $ - $ - $ - $ 594,387 Ancillary operations - 39,801 - - - 39,801 594,387 39,801 - - - 634,188 Cost of operations: Self-storage operations 157,687 - - - - 157,687 Ancillary operations - 14,317 - - - 14,317 157,687 14,317 - - - 172,004 Net operating income: Self-storage operations 436,700 - - - - 436,700 Ancillary operations - 25,484 - - - 25,484 436,700 25,484 - - - 462,184 Other components of net income (loss): Depreciation and amortization (107,013) - - - - (107,013) General and administrative - - - - (18,321) (18,321) Interest and other income - - - - 4,028 4,028 Interest expense - - - - (1,378) (1,378) Equity in earnings of unconsolidated real estate entities - - 7,869 1,706 652 10,227 Foreign currency exchange gain - - - - 8,632 8,632 Net income (loss) $ 329,687 $ 25,484 $ 7,869 $ 1,706 $ (6,387) $ 358,359 Three months ended June 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 $ 551,028 $ - $ - $ - $ - $ 551,028 Ancillary operations - 37,587 - - - 37,587 551,028 37,587 - - - 588,615 Cost of operations: Self-storage operations 147,826 - - - - 147,826 Ancillary operations - 13,271 - - - 13,271 147,826 13,271 - - - 161,097 Net operating income: Self-storage operations 403,202 - - - - 403,202 Ancillary operations - 24,316 - - - 24,316 403,202 24,316 - - - 427,518 Other components of net income (loss): Depreciation and amortization (106,473) - - - - (106,473) General and administrative - - - - (20,988) (20,988) Interest and other income - - - - 3,815 3,815 Equity in earnings of unconsolidated real estate entities - - 5,516 1,355 609 7,480 Gain on real estate investment sales - - - - 16,688 16,688 Net income $ 296,729 $ 24,316 $ 5,516 $ 1,355 $ 124 $ 328,040 Six months ended June 30, 2016 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 $ 1,168,973 $ - $ - $ - $ - $ 1,168,973 Ancillary operations - 77,001 - - - 77,001 1,168,973 77,001 - - - 1,245,974 Cost of operations: Self-storage operations 317,550 - - - - 317,550 Ancillary operations - 27,740 - - - 27,740 317,550 27,740 - - - 345,290 Net operating income: Self-storage operations 851,423 - - - - 851,423 Ancillary operations - 49,261 - - - 49,261 851,423 49,261 - - - 900,684 Other components of net income (loss): Depreciation and amortization (212,141) - - - - (212,141) General and administrative - - - - (41,368) (41,368) Interest and other income - - - - 7,864 7,864 Interest expense - - - - (2,089) (2,089) Equity in earnings of unconsolidated real estate entities - - 15,200 7,942 1,249 24,391 Foreign currency exchange loss - - - - (2,322) (2,322) Gain on real estate investment sales - - - - 689 689 Net income (loss) $ 639,282 $ 49,261 $ 15,200 $ 7,942 $ (35,977) $ 675,708 Six months ended June 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 $ 1,081,665 $ - $ - $ - $ - $ 1,081,665 Ancillary operations - 71,829 - - - 71,829 1,081,665 71,829 - - - 1,153,494 Cost of operations: Self-storage operations 309,068 - - - - 309,068 Ancillary operations - 24,041 - - - 24,041 309,068 24,041 - - - 333,109 Net operating income: Self-storage operations 772,597 - - - - 772,597 Ancillary operations - 47,788 - - - 47,788 772,597 47,788 - - - 820,385 Other components of net income (loss): Depreciation and amortization (213,619) - - - - (213,619) General and administrative - - - - (45,148) (45,148) Interest and other income - - - - 7,852 7,852 Equity in earnings of unconsolidated real estate entities - - 15,411 7,091 1,162 23,664 Gain on real estate investment sales - - - - 18,160 18,160 Net income (loss) $ 558,978 $ 47,788 $ 15,411 $ 7,091 $ (17,974) $ 611,294 |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 11. 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 deductibles. Deductibles for property and general liability are $25 million and $2 million, respectively, per occurrence. The aggregate limits on these policies of $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 exceeded. 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 June 30, 2016, there were approximately 923,000 certificates held by our self-storage customers, representing aggregate coverage of approximately $2.7 billion . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On July 20, 2016, we issued 13.0 million depositary shares, each representing 1/1 ,000 of a share of our 4.95 % Series D Preferred Shares, at an issuance price of $25.00 per depositary share, for a total of $325.0 million in gross proceeds, and we incurred $ 10.6 million in issuance costs. Subsequent to June 30 , 2016 , we acquired or were under contract to acquire 21 self-storage facilities ( eleven in Oklah oma, four in Kentucky, two in Ohio, and one each in Georgia, Colorado, Michigan and Utah ), with 1.7 million net rentable square feet, for $1 69.4 million. |
Summary Of Significant Accoun21
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 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, 2015. Certain amounts previously reported in our June 30, 2015 financial statements have been reclassified to conform to the June 30, 2016 presentation. We reclassified the revenues and cost of operations, net for our wholly-owned commercial facilities and property management operations as interest and other income (aggregates of approximately $ 4.0 million and $ 1.1 million for the three months ended June 30, 2015, respectively, and $8.5 million and $ 2.3 million for the six months ended June 30, 2015, respectively), rather than as ancillary revenues and ancillary cost of operations. We also revised our reportable segment presentation in Note 10, 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. On our statement of cash flows for the six months ended June 30, 2015, we reclassified as cash flows from financing activities the $13. 6 million we paid for the restricted share units that we withheld upon their vesting for tax requirements, in connection with a recently issued accounting pronouncement related to employee share-based payment accounting we early adopted effective January 1, 2016. We previously included these amounts within operating activities (see “Recent Accounting Pronouncements and Guidance” below). |
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 the equity holders as a group do not have a controlling financial interest. We consolidate VIEs when we have (i) the power to direct the activities most significantly impacting economic performance, and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. We have no involvement with any material VIEs. We consolidate all other entities when we control them through voting shares or contractual rights. The entities we consolidate, 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 do not consolidate but have significant influence over 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 begin consolidating an entity, we record a gain representing the differential between the book value and fair value of any preexisting equity interest. All changes in consolidation status are reflected prospectively. Collectively, at June 30, 2016, the Company and the Subsidiaries own 2,298 self-storage facilities in the U.S., one self-storage facility in London, England and three commercial facilities in the U.S. At June 30, 2016, 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 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 each year, and if we meet certain organizational and operational rules. We believe we have met these REIT requirements for all 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 June 30, 2016, 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, and we believe that the fair value of our accrued and other liabilities approximates book value, due to the short period until repayment. 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, 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. We believe that the book value of all such financial instruments for all periods presented approximates fair value, due to the short period to maturity. 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 | Fair Value 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. Our estimates of fair value involve considerable judgment and are not necessarily indicative of the amounts that could be realized in current market exchanges. We estimate the fair value of our cash and cash equivalents, marketable securities, other assets, debt, and other liabilities by applying a discount rate to the future cash flows of the financial instrument. The discount rate is based upon quoted interest rates for securities that have similar characteristics such as credit quality and time to maturity ; such quoted interest rates are referred to generally as “Level 2” inputs. |
Currency And Credit Risk | Currency and Credit Risk Financial instruments that are exposed to credit risk consist primarily of cash and cash equivalents, certain portions of other assets including rents 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 June 30, 2016, due primarily to our investment in Shurgard Europe (Note 4) and our senior unsecured notes denominated in Euros (Note 5), 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 June 30, 2016 and December 31, 2015. 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 June 30, 2016 and December 31, 2015. 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 June 30, 2016, these intangibles had a net book value of $19. 9 million ( $18.0 million at December 31, 2015). Accumulated amortization totaled $5 1.9 million at June 30, 2016 ( $66.4 million at December 31, 2015), and amortization expense of $ 10.5 million and $ 15.9 million was recorded in the six months ended June 30, 2016 and 2015, respectively. The estimated future amortization expense for our finite-lived intangible assets at June 30, 2016 is approximately $7.5 million in the remainder of 2016, $5.6 million in 2017 and $6. 8 million thereafter. During the six months ended June 30, 2016, intangibles were increased $ 12.5 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 rental 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 when bills or assessments have not been received from the taxing authorities. 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 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 1.110 U.S. Dollars per Euro at June 30, 2016 ( 1.091 at December 31, 2015), and average exchange rates of 1.129 and 1.1 06 for the three months ended June 30, 2016 and 2015, respectively, and an average exchange rate of 1.116 for the each of six month periods ended June 30, 2016 and 2015. 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 primarily related to our investment in Shurgard Europe and our senior unsecured notes denominated in Euros. |
Recent Accounting Pronouncements And Guidance | Recent Accounting Pronouncements and Guidance In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , which requires revenue to be based upon the consideration expected from customers for promised goods 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 2015-02, Consolidation – Amendments to the Consolidation Analysis , 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. We adopted this standard effective January 1, 2016 , which did not change the consolidation status of any entities in which we have an interest; however, certain entities began to be considered VIE’s as a result of the change. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard, effective on January 1, 2019, requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief and allows for early adoption on January 1, 2016. We have not yet determined whether this standard will have a material effect on our results of operations or financial condition. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . We early adopted this standard effective January 1, 2016. Under this standard, a share-based compensation-related tax liability paid on behalf of employees in lieu of shares received is classified as a financing activity on the statement of cash flows, rather than as an operating activity as we had previously presented such amounts. We applied this provision retrospectively. The standard also allows a company to choose, with respect to recording share-based expense, between (i) recognizing forfeitures only as they occur or (ii) estimating future forfeitures in advance. We chose to recognize forfeitures only as they occur, rather than estimating in advance, accordingly, effective January 1, 2016, under the modified retrospective transition method as required by the standard, we recorded a cumulative-effect adjustment of $0.8 million to increase accumulated deficit and increase paid-in capital for the impact of estimated future forfeitures after December 31, 2015 (Note 9). |
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 (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 and diluted per common share are each calculated based upon net income allocable to common shareholders presented on the face of our income statement, divided by (i) in the case of basic net income per common share, weighted average common shares, and (ii) in the case of diluted income per share, weighted average common shares adjusted for the impact, if dilutive, of stock options outstanding (Note 9). The following table reconciles from basic to diluted common shares outstanding: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Amounts in thousands) Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 173,087 172,629 173,032 172,575 Net effect of dilutive stock options - based on treasury stock method 913 758 893 802 Diluted weighted average common shares outstanding 174,000 173,387 173,925 173,377 |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Net Income Per Common Share | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Amounts in thousands) Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 173,087 172,629 173,032 172,575 Net effect of dilutive stock options - based on treasury stock method 913 758 893 802 Diluted weighted average common shares outstanding 174,000 173,387 173,925 173,377 |
Real Estate Facilities (Tables)
Real Estate Facilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Facilities [Abstract] | |
Schedule Of Real Estate Activities | Six Months Ended June 30, 2016 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 13,205,261 Capital expenditures to maintain real estate facilities 44,945 Acquisitions 185,150 Newly developed facilities opened for operation 136,989 Impact of foreign exchange rate changes (1,685) Ending balance 13,570,660 Accumulated depreciation: Beginning balance (4,866,738) Depreciation expense (198,729) Impact of foreign exchange rate changes 1,044 Ending balance (5,064,423) Construction in process: Beginning balance 219,190 Current development 145,902 Newly developed facilities opened for operation (136,989) Ending balance 228,103 Total real estate facilities at June 30, 2016 $ 8,734,340 |
Investments In Unconsolidated24
Investments In Unconsolidated Real Estate Entities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 December 31, 2015 PSB $ 407,954 $ 414,450 Shurgard Europe 281,674 388,367 Other Investments (A) 6,441 6,491 Total $ 696,069 $ 809,308 Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 PSB $ 7,869 $ 5,516 $ 15,200 $ 15,411 Shurgard Europe 1,706 1,355 7,942 7,091 Other Investments (A) 652 609 1,249 1,162 Total $ 10,227 $ 7,480 $ 24,391 $ 23,664 (A) At June 30, 2016 and December 31, 2015, the “Other Investments” include an average 26% common equity ownership in limited partnerships that collectively own 12 self-storage facilities. In the six months ended June 30, 2016, we sold one of the Other Investments resulting in a $0.7 million gain on real estate investment sales on our income statement. |
PSB [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule Of Selected Financial Information | June 30, December 31, 2016 2015 (Amounts in thousands) Total assets (primarily real estate) $ 1,982,082 $ 2,186,658 Debt 54,000 250,000 Other liabilities 74,335 76,059 Equity: Preferred stock 920,000 920,000 Common equity and LP units 933,747 940,599 2016 2015 (Amounts in thousands) For the six months ended June 30, Total revenue $ 192,191 $ 185,543 Costs of operations (61,644) (61,803) Depreciation and amortization (50,255) (53,258) General and administrative (9,012) (6,896) Other items (4,877) (6,409) Gain on sale of facilities - 12,487 Net income 66,403 69,664 Allocations to preferred shareholders and restricted share unitholders (27,924) (30,384) Net income allocated to common shareholders and LP Unitholders $ 38,479 $ 39,280 |
Shurgard Europe [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule Of Selected Financial Information | June 30, December 31, 2016 2015 (Amounts in thousands) Total assets (primarily self-storage facilities) $ 1,355,170 $ 1,476,632 Total debt to third parties 743,016 662,336 Other liabilities 123,451 110,522 Equity 488,703 703,774 Exchange rate of Euro to U.S. Dollar 1.110 1.091 2016 2015 (Amounts in thousands) For the six months ended June 30, Self-storage and ancillary revenues $ 125,546 $ 112,683 Self-storage and ancillary cost of operations (49,828) (44,244) Depreciation and amortization (34,555) (29,339) General and administrative and income tax expense (a) (12,656) (9,987) Interest expense on third party debt (10,381) (6,929) Trademark license fee payable to Public Storage (1,265) (1,128) Foreign exchange gain and other, net (b) (1,919) (7,713) Net income $ 14,942 $ 13,343 Average exchange rates of Euro to the U.S. Dollar 1.116 1.116 (a) Amounts include approximately $ 5.7 million and $ 3.4 million for the six months ended June 30, 2016 and 2015, respectively, in income tax expense . (b) A mounts during the six months ended June 30, 2016 include a $ 1.9 million foreign exchange gain on a repaid intercompany note between entities consolidated by Shurgard Europe, and amounts d uring the same period in 2015 include $6.9 million in costs associated with the acquisition of real estate facilities . |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Borrowings [Abstract] | |
Maturities Of Notes Payable | Senior Mortgage Unsecured Notes Notes Total Remainder of 2016 $ - $ 18,236 $ 18,236 2017 - 9,434 9,434 2018 - 11,333 11,333 2019 - 1,505 1,505 2020 - 1,585 1,585 Thereafter 379,792 14,950 394,742 $ 379,792 $ 57,043 $ 436,835 Weighted average effective rate 2.0% 4.2% 2.3% |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Shareholders’ Equity [Abstract] | |
Preferred Shares Outstanding | At June 30, 2016 At December 31, 2015 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series Q 4/14/2016 6.500% - $ - 15,000 $ 375,000 Series R 7/26/2016 6.350% - - 19,500 487,500 Series S 1/12/2017 5.900% 18,400 460,000 18,400 460,000 Series T 3/13/2017 5.750% 18,500 462,500 18,500 462,500 Series U 6/15/2017 5.625% 11,500 287,500 11,500 287,500 Series V 9/20/2017 5.375% 19,800 495,000 19,800 495,000 Series W 1/16/2018 5.200% 20,000 500,000 20,000 500,000 Series X 3/13/2018 5.200% 9,000 225,000 9,000 225,000 Series Y 3/17/2019 6.375% 11,400 285,000 11,400 285,000 Series Z 6/4/2019 6.000% 11,500 287,500 11,500 287,500 Series A 12/2/2019 5.875% 7,600 190,000 7,600 190,000 Series B 1/20/2021 5.400% 12,000 300,000 - - Series C 5/17/2021 5.125% 8,000 200,000 - - Total Preferred Shares 147,700 $ 3,692,500 162,200 $ 4,055,000 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information [Abstract] | |
Summary Of Segment Information | Three months ended June 30, 2016 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 $ 594,387 $ - $ - $ - $ - $ 594,387 Ancillary operations - 39,801 - - - 39,801 594,387 39,801 - - - 634,188 Cost of operations: Self-storage operations 157,687 - - - - 157,687 Ancillary operations - 14,317 - - - 14,317 157,687 14,317 - - - 172,004 Net operating income: Self-storage operations 436,700 - - - - 436,700 Ancillary operations - 25,484 - - - 25,484 436,700 25,484 - - - 462,184 Other components of net income (loss): Depreciation and amortization (107,013) - - - - (107,013) General and administrative - - - - (18,321) (18,321) Interest and other income - - - - 4,028 4,028 Interest expense - - - - (1,378) (1,378) Equity in earnings of unconsolidated real estate entities - - 7,869 1,706 652 10,227 Foreign currency exchange gain - - - - 8,632 8,632 Net income (loss) $ 329,687 $ 25,484 $ 7,869 $ 1,706 $ (6,387) $ 358,359 Three months ended June 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 $ 551,028 $ - $ - $ - $ - $ 551,028 Ancillary operations - 37,587 - - - 37,587 551,028 37,587 - - - 588,615 Cost of operations: Self-storage operations 147,826 - - - - 147,826 Ancillary operations - 13,271 - - - 13,271 147,826 13,271 - - - 161,097 Net operating income: Self-storage operations 403,202 - - - - 403,202 Ancillary operations - 24,316 - - - 24,316 403,202 24,316 - - - 427,518 Other components of net income (loss): Depreciation and amortization (106,473) - - - - (106,473) General and administrative - - - - (20,988) (20,988) Interest and other income - - - - 3,815 3,815 Equity in earnings of unconsolidated real estate entities - - 5,516 1,355 609 7,480 Gain on real estate investment sales - - - - 16,688 16,688 Net income $ 296,729 $ 24,316 $ 5,516 $ 1,355 $ 124 $ 328,040 Six months ended June 30, 2016 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 $ 1,168,973 $ - $ - $ - $ - $ 1,168,973 Ancillary operations - 77,001 - - - 77,001 1,168,973 77,001 - - - 1,245,974 Cost of operations: Self-storage operations 317,550 - - - - 317,550 Ancillary operations - 27,740 - - - 27,740 317,550 27,740 - - - 345,290 Net operating income: Self-storage operations 851,423 - - - - 851,423 Ancillary operations - 49,261 - - - 49,261 851,423 49,261 - - - 900,684 Other components of net income (loss): Depreciation and amortization (212,141) - - - - (212,141) General and administrative - - - - (41,368) (41,368) Interest and other income - - - - 7,864 7,864 Interest expense - - - - (2,089) (2,089) Equity in earnings of unconsolidated real estate entities - - 15,200 7,942 1,249 24,391 Foreign currency exchange loss - - - - (2,322) (2,322) Gain on real estate investment sales - - - - 689 689 Net income (loss) $ 639,282 $ 49,261 $ 15,200 $ 7,942 $ (35,977) $ 675,708 Six months ended June 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 $ 1,081,665 $ - $ - $ - $ - $ 1,081,665 Ancillary operations - 71,829 - - - 71,829 1,081,665 71,829 - - - 1,153,494 Cost of operations: Self-storage operations 309,068 - - - - 309,068 Ancillary operations - 24,041 - - - 24,041 309,068 24,041 - - - 333,109 Net operating income: Self-storage operations 772,597 - - - - 772,597 Ancillary operations - 47,788 - - - 47,788 772,597 47,788 - - - 820,385 Other components of net income (loss): Depreciation and amortization (213,619) - - - - (213,619) General and administrative - - - - (45,148) (45,148) Interest and other income - - - - 7,852 7,852 Equity in earnings of unconsolidated real estate entities - - 15,411 7,091 1,162 23,664 Gain on real estate investment sales - - - - 18,160 18,160 Net income (loss) $ 558,978 $ 47,788 $ 15,411 $ 7,091 $ (17,974) $ 611,294 |
Description Of The Business (Na
Description Of The Business (Narrative) (Details) ft² in Millions | 6 Months Ended | |
Jun. 30, 2016ft²stateitemcountry | Dec. 31, 2015 | |
Public Storage [Member] | ||
Nature Of Business [Line Items] | ||
PSA self-storage facilities | item | 2,310 | |
Net rentable square feet | ft² | 151 | |
Number of states with facilities | state | 38 | |
Western Europe [Member] | ||
Nature Of Business [Line Items] | ||
Direct interest in self-storage facilities, number of countries | country | 7 | |
London [Member] | ||
Nature Of Business [Line Items] | ||
Owned Self Storage Facilities | item | 1 | |
Shurgard Europe [Member] | ||
Nature Of Business [Line Items] | ||
Net rentable square feet | ft² | 12 | |
Ownership interest, percentage | 49.00% | |
Number of facilities owned by Shurgard Europe | item | 217 | |
PSB [Member] | ||
Nature Of Business [Line Items] | ||
Net rentable square feet | ft² | 29 | |
Number of states with facilities | state | 9 | |
Ownership interest, percentage | 42.00% | 42.00% |
Summary Of Significant Accoun29
Summary Of Significant Accounting Policies (Basis of Presentation and Consolidation And Equity Method Of Accounting) (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash paid upon vesting in lieu of issuing common shares | $ | $ 13,304,000 | $ 13,591,000 | |
Investments in VIEs | $ | $ 0 | ||
Commercial Facilities & Property Management Operations [Member] | Revenues [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Interest and other income | $ | $ 4,000,000 | 8,500,000 | |
Commercial Facilities & Property Management Operations [Member] | Costs Of Operations [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Interest and other income | $ | $ 1,100,000 | $ 2,300,000 | |
London [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Owned self-storage facilities | item | 1 | ||
U.S. [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Owned self-storage facilities | item | 2,298 | ||
Commercial facilities in U.S. | item | 3 | ||
Other Investments [Member] | U.S. [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Owned self-storage facilities | item | 12 |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Income Taxes And Real Estate Facilities) (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
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 Other Intangible Assets) (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
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 | 19.9 | 18 | |
Accumulated amortization, tenant intangibles | 51.9 | $ 66.4 | |
Amortization expense, tenant intangibles | 10.5 | $ 15.9 | |
Estimated future amortization expense, 2016 | 7.5 | ||
Estimated future amortization expense, 2017 | 5.6 | ||
Estimated future amortization expense, thereafter | 6.8 | ||
Increase in tenant intangibles | 12.5 | ||
Impairments | $ 0 |
Summary Of Significant Accoun32
Summary Of Significant Accounting Policies (Evaluation Of Asset Impairment And Foreign Currency Exchange Translation) (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016USD ($) | Jun. 30, 2015 | Dec. 31, 2015 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Cumulative effect of a change in accounting principle | $ 0.8 | ||||
Foreign Currency Average Exchange Rate [Member] | |||||
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Average exchange rates USD to Euro | 1.129 | 1.106 | 1.116 | 1.116 | |
Foreign Currency Actual [Member] | |||||
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Average exchange rates USD to Euro | 1.110 | 1.091 |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Net income allocable to common shareholders | $ 280,775 | $ 263,926 | $ 522,110 | $ 476,539 |
Basic weighted average common shares outstanding | 173,087 | 172,629 | 173,032 | 172,575 |
Net effect of dilutive stock options - based on treasury stock method | 913 | 758 | 893 | 802 |
Diluted weighted average common shares outstanding | 174,000 | 173,387 | 173,925 | 173,377 |
Real Estate Facilities (Narrati
Real Estate Facilities (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)ft²item | Jun. 30, 2015USD ($) | |
Schedule Of Real Estate Facilities [Line Items] | |||
Cash to acquire self-storage facilities | $ 184,657 | $ 87,783 | |
Allocated To Real Estate Facilities | 185,150 | ||
Gains (Losses) on Sales of Investment Real Estate | $ 16,688 | $ 689 | $ 18,160 |
Acquisition Of Self-Storage Facilities [Member] | |||
Schedule Of Real Estate Facilities [Line Items] | |||
Number of operating self-storage facilities | item | 24 | ||
Net rentable square feet | ft² | 1,703,000 | ||
Acquisition cost of real estate facilities | $ 197,600 | ||
Cash to acquire self-storage facilities | 184,700 | ||
Mortgage debt assumed | 12,900 | ||
Aggregate cost, intangibles | $ 12,500 | ||
Newly Developed and Expansion Projects [Member] | Construction In Process [Member] | |||
Schedule Of Real Estate Facilities [Line Items] | |||
Net rentable square feet | ft² | 4,900,000 | ||
Aggregate costs to develop new self-storage facilities and expand existing self-storage facilities | $ 630,700 | ||
Newly Developed and Expansion Projects [Member] | Completed Developed and Expansion Project [Member] | |||
Schedule Of Real Estate Facilities [Line Items] | |||
Net rentable square feet | ft² | 1,269,000 | ||
Aggregate costs to develop new self-storage facilities and expand existing self-storage facilities | $ 137,000 |
Real Estate Facilities (Schedul
Real Estate Facilities (Schedule Of Real Estate Activities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Real Estate Facilities [Abstract] | ||
Beginning balance (Operating facilities, at cost) | $ 13,205,261 | |
Capital expenditures to maintain real estate facilities | 44,945 | |
Acquisitions | 185,150 | |
Newly developed facilities opened for operation | 136,989 | |
Impact of foreign exchange rate changes | (1,685) | |
Ending balance (Operating facilities, at cost) | 13,570,660 | |
Beginning balance, (Accumulated depreciation) | (4,866,738) | |
Depreciation expense | (198,729) | |
Impact of foreign exchange rate changes | 1,044 | |
Ending balance, (Accumulated depreciation) | (5,064,423) | |
Beginning Balance (Construction in process | 219,190 | |
Current development | 145,902 | |
Newly developed facilities opened for operation | (136,989) | |
Ending Balance (Construction in process | 228,103 | |
Total real estate facilities at June 30, 2016 | $ 8,734,340 | $ 8,557,713 |
Investments In Unconsolidated36
Investments In Unconsolidated Real Estate Entities (Investments) (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash distributions from Unconsolidated Real Estate Entities | $ 128,000,000 | $ 16,400,000 | |||
Distributions in excess of retained earnings from unconsolidated real estate entities | 67,420,000 | ||||
Amount of investment exceeding pro rata share of underlying equity | $ 59,000,000 | 59,000,000 | $ 62,000,000 | ||
Equity earnings, amortization amount | 900,000 | 1,100,000 | |||
Equity in earnings of unconsolidated real estate entities | $ 10,227,000 | $ 7,480,000 | 24,391,000 | 23,664,000 | |
Gain on real estate sales | 16,688,000 | $ 689,000 | 18,160,000 | ||
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 | $ 106.08 | $ 106.08 | |||
Equity in earnings of unconsolidated real estate entities | $ 7,869,000 | $ 5,516,000 | $ 15,200,000 | $ 15,411,000 | |
Market value of PSB stock and LP units | $ 1,500,000,000 | $ 1,500,000,000 |
Investments In Unconsolidated37
Investments In Unconsolidated Real Estate Entities (Investment In Shurgard Europe) (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income tax expense | $ 0 | |||
Equity in earnings of real estate entities | $ 10,227,000 | $ 7,480,000 | $ 24,391,000 | $ 23,664,000 |
Joint Venture Partner [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Interest in Shurgard Europe | 51.00% | 51.00% | ||
Shurgard Europe [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Interest in Shurgard Europe | 49.00% | 49.00% | ||
Increase (decrease) in Shurgard Europe investment from foreign currency exchange rates | $ (8,700,000) | (12,600,000) | ||
Acquisition costs | 6,900,000 | 6,900,000 | ||
Income tax expense | 5,700,000 | 3,400,000 | ||
Equity in earnings of real estate entities | $ 1,706,000 | $ 1,355,000 | 7,942,000 | $ 7,091,000 |
Shurgard Europe [Member] | Accumulated Comprehensive Income [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings of real estate entities | 900,000 | |||
Shurgard Europe [Member] | Foreign Exchange Gain [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Acquisition costs | $ 1,900,000 | $ 1,900,000 |
Investments In Unconsolidated38
Investments In Unconsolidated Real Estate Entities (Schedule Of Investments In Real Estate Entities And Equity In Earnings Of Real Estate) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Unconsolidated Real Estate Entities | $ 696,069 | $ 696,069 | $ 809,308 | |||
Equity in Earnings of Unconsolidated Real Estate Entities | 10,227 | $ 7,480 | 24,391 | $ 23,664 | ||
Gain on real estate investment sales | 689 | 18,160 | ||||
Other Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Unconsolidated Real Estate Entities | [1] | 6,441 | 6,441 | $ 6,491 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | [1] | $ 652 | 609 | $ 1,249 | 1,162 | |
Other equity ownership | 26.00% | 26.00% | 26.00% | |||
Number of self-storage facilities owned, other | item | 12 | 12 | 12 | |||
Gain on real estate investment sales | $ 700 | |||||
Number of other investments sold | item | 1 | |||||
PSB [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Unconsolidated Real Estate Entities | $ 407,954 | $ 407,954 | $ 414,450 | |||
Equity in Earnings of Unconsolidated Real Estate Entities | 7,869 | 5,516 | 15,200 | 15,411 | ||
Shurgard Europe [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in Unconsolidated Real Estate Entities | 281,674 | 281,674 | $ 388,367 | |||
Equity in Earnings of Unconsolidated Real Estate Entities | $ 1,706 | $ 1,355 | $ 7,942 | $ 7,091 | ||
[1] | At June 30, 2016 and December 31, 2015, the "Other Investments" include an average 26% common equity ownership in limited partnerships that collectively own 12 self-storage facilities. In the six months ended June 30, 2016, we sold one of the Other Investments resulting in a $0.7 million gain on real estate investment sales on our income statement. |
Investments In Unconsolidated39
Investments In Unconsolidated Real Estate Entities (Schedule Of Selected Financial Information) (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016USD ($)$ / € | Jun. 30, 2015USD ($)$ / € | Dec. 31, 2015USD ($)$ / € | ||
Schedule of Equity Method Investments [Line Items] | ||||
Preferred stock called for redemption | $ 487,500 | |||
PSB [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total assets (primarily real estate) | 1,982,082 | $ 2,186,658 | ||
Debt | 54,000 | 250,000 | ||
Other liabilities | 74,335 | 76,059 | ||
Preferred stock | 920,000 | 920,000 | ||
Common equity and LP units | 933,747 | 940,599 | ||
Total revenue | 192,191 | $ 185,543 | ||
Costs of operations | (61,644) | (61,803) | ||
Self-storage and ancillary revenues | 192,191 | 185,543 | ||
Self-storage and ancillary cost of operations | (61,644) | (61,803) | ||
Depreciation and amortization | (50,255) | (53,258) | ||
General and administrative and income tax expense | (9,012) | (6,896) | ||
Other items | (4,877) | (6,409) | ||
Gain on sale of facilities | 12,487 | |||
Net income | 66,403 | 69,664 | ||
Allocations to preferred shareholders and restricted share unitholders | (27,924) | (30,384) | ||
Net income allocated to common shareholders and LP Unitholders | 38,479 | 39,280 | ||
Shurgard Europe [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total assets (primarily real estate) | 1,355,170 | 1,476,632 | ||
Total debt to third parties | 743,016 | 662,336 | ||
Other liabilities | 123,451 | 110,522 | ||
Equity | $ 488,703 | $ 703,774 | ||
Exchange rate of Euro to U.S. Dollar | $ / € | 1.110 | 1.091 | ||
Total revenue | $ 125,546 | 112,683 | ||
Costs of operations | (49,828) | (44,244) | ||
Self-storage and ancillary revenues | 125,546 | 112,683 | ||
Self-storage and ancillary cost of operations | (49,828) | (44,244) | ||
Depreciation and amortization | (34,555) | (29,339) | ||
General and administrative and income tax expense | [1] | (12,656) | (9,987) | |
Interest expense on third party debt | (10,381) | (6,929) | ||
Trademark license fee payable to Public Storage | (1,265) | (1,128) | ||
Foreign exchange gain and other, net | [2] | (1,919) | (7,713) | |
Net income | $ 14,942 | $ 13,343 | ||
Average exchange rates Euro to the U.S. Dollar | $ / € | 1.116 | 1.116 | ||
[1] | 20162015(Amounts in thousands)For the six months ended June 30,Self-storage and ancillary revenues $ 125,546$ 112,683Self-storage and ancillary cost of operations (49,828) (44,244)Depreciation and amortization (34,555) (29,339)General and administrative and income tax expense (a) (12,656) (9,987)Interest expense on third party debt (10,381) (6,929)Trademark license fee payable to Public Storage (1,265) (1,128)Foreign exchange gain and other, net (b) (1,919) (7,713)Net income $ 14,942$ 13,343Average exchange rates of Euro to the U.S. Dollar 1.116 1.116Amounts include approximately $5.7 million and $3.4 million for the six months ended June 30, 2016 and 2015, respectively, in income tax expense. | |||
[2] | Amounts during the six months ended June 30, 2016 include a $1.9 million foreign exchange gain on a repaid intercompany note between entities consolidated by Shurgard Europe, and amounts during the same period in 2015 include $6.9 million in costs associated with the acquisition of real estate facilities |
Investments In Unconsolidated40
Investments In Unconsolidated Real Estate Entities (Schedule Of Equity In Earnings) (Details) | Jun. 30, 2016 |
Shurgard Europe [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity share percentage in Shurgard Europe | 49.00% |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Aug. 03, 2016USD ($) | Jun. 30, 2016EUR (€)item | Jun. 30, 2016USD ($)item | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Schedule Of Debt [Line Items] | ||||||||
Total notes payable | $ 57,043 | $ 55,076 | ||||||
Secured by real estate facilities | item | 35 | 35 | ||||||
Net book value of real estate facilities securing notes payable | $ 181,000 | |||||||
Unsecured Debt | 379,792 | 263,940 | ||||||
Proceeds from Issuance of Unsecured Debt | $ 113,620 | |||||||
Foreign currency exchange gain (loss) | $ 8,632 | (2,322) | ||||||
Unsecured Notes | 379,792 | 263,940 | ||||||
Cash paid for interest expense | 4,700 | $ 1,500 | ||||||
Interest capitalized as real estate | $ 1,200 | 2,600 | ||||||
Senior Unsecured Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Unsecured Debt | € 342 | 379,800 | ||||||
Fair value of unsecured senior debt | 395,000 | 263,900 | ||||||
Foreign currency exchange gain (loss) | $ (2,200) | |||||||
Unsecured Notes | € 342 | 379,800 | ||||||
Credit Facility [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Credit Facility borrowing capacity | $ 500,000 | |||||||
Expiration of Credit Facility | Mar. 31, 2020 | |||||||
Facility fee percentage at end of quarter | 0.08% | 0.08% | ||||||
Outstanding borrowings on Credit Facility | $ 0 | |||||||
Undrawn standby letters of credit | $ 15,200 | 14,900 | ||||||
Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Interest at period end spread (LIBOR) | 0.85% | 0.85% | ||||||
Maximum [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Interest rate | 7.10% | 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] | ||||||||
Interest rate | 2.90% | 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] | ||||||||
Interest rate | 4.20% | 4.20% | ||||||
Mortgage debt assumed | $ 12,900 | |||||||
Note Payable [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Total notes payable | $ 57,000 | 55,100 | ||||||
Note Payable [Member] | Maximum [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Maturity date | Sep. 1, 2028 | |||||||
Note Payable [Member] | Minimum [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Maturity date | Oct. 1, 2016 | |||||||
Senior Unsecured Notes Maturing November 2025 [Member] | Senior Unsecured Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Interest rate | 2.175% | 2.175% | ||||||
Maturity date | Nov. 1, 2025 | |||||||
Unsecured Debt | € 242 | € 242 | 263,900 | |||||
Unsecured Notes | € 242 | € 242 | $ 263,900 | |||||
Senior Unsecured Notes Maturing April 2024 [Member] | Senior Unsecured Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Issuance date | Apr. 12, 2016 | |||||||
Interest rate | 1.54% | 1.54% | ||||||
Maturity date | Apr. 1, 2024 | |||||||
Unsecured Debt | € | € 100 | |||||||
Proceeds from Issuance of Unsecured Debt | $ 113,600 | |||||||
Unsecured Notes | € | € 100 | |||||||
Subsequent Event [Member] | Credit Facility [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Outstanding borrowings on Credit Facility | $ 0 |
Borrowings (Maturities Of Notes
Borrowings (Maturities Of Notes Payable) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2016 | $ 18,236 |
2,017 | 9,434 |
2,018 | 11,333 |
2,019 | 1,505 |
2,020 | 1,585 |
Thereafter | 394,742 |
Total notes payable | 436,835 |
Senior Unsecured Notes [Member] | |
Debt Instrument [Line Items] | |
Thereafter | 379,792 |
Total notes payable | $ 379,792 |
Weighted average effective rate | 2.00% |
Mortgage Notes [Member] | |
Debt Instrument [Line Items] | |
Remainder of 2016 | $ 18,236 |
2,017 | 9,434 |
2,018 | 11,333 |
2,019 | 1,505 |
2,020 | 1,585 |
Thereafter | 14,950 |
Total notes payable | $ 57,043 |
Weighted average effective rate | 4.20% |
Total Notes [Member] | |
Debt Instrument [Line Items] | |
Weighted average effective rate | 2.30% |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)itemshares | Jun. 30, 2015USD ($) | |
Noncontrolling Interest [Line Items] | ||
Contributions by noncontrolling interests | $ (2,747) | |
Distributions paid | $ 3,640 | |
Noncontrolling Interests [Member] | ||
Noncontrolling Interest [Line Items] | ||
Permanent Noncontrolling Interests in Subsidiaries, number of self-storage facilities | item | 13 | |
Permanent Noncotrolling Interest in Subsidaries, number of self-storage facilities under construction | item | 7 | |
Convertible partnership units | shares | 231,978 | |
Contributions by noncontrolling interests | $ (2,747) | $ 0 |
Income allocated to other Permanent Noncontrolling Interest in Subsidiaries | 3,200 | 3,100 |
Distributions paid | $ 3,640 | $ 3,200 |
Shareholders' Equity (Preferred
Shareholders' Equity (Preferred Shares) (Narrative) (Details) $ / shares in Units, shares in Millions | May 17, 2016USD ($)$ / sharesshares | Jan. 20, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2016USD ($)item$ / shares | Jun. 30, 2015USD ($)$ / shares |
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 | $ 25 | ||||
Proceeds from issuance of preferred stock | $ 483,678,000 | ||||||
EITF D-42 allocations | $ 15,537,000 | $ 26,873,000 | $ 4,784,000 | ||||
Cash dividends declared per common share | $ / shares | $ 1.80 | $ 1.70 | $ 3.50 | $ 3.10 | |||
Common stock dividends paid in aggregate | $ 312,500,000 | $ 294,300,000 | $ 607,600,000 | $ 536,600,000 | |||
Preferred shareholders based on distributions paid | 59,200,000 | $ 61,400,000 | $ 121,500,000 | $ 125,000,000 | |||
Series O Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 6.875% | ||||||
EITF D-42 allocations | $ 4,800,000 | ||||||
Series Q Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 6.50% | ||||||
EITF D-42 allocations | $ 11,300,000 | ||||||
Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of stock issued in sale | shares | 12 | ||||||
Preferred shares per depositary share | 0.10% | ||||||
Issuance price per depository share | $ / shares | $ 25 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.40% | 5.40% | |||||
Proceeds from issuance of preferred stock | $ 300,000,000 | ||||||
Original issuance costs on preferred shares redeemed during the period | $ 9,900,000 | ||||||
Series C Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of stock issued in sale | shares | 8 | ||||||
Preferred shares per depositary share | 0.10% | ||||||
Issuance price per depository share | $ / shares | $ 25 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.125% | 5.125% | |||||
Proceeds from issuance of preferred stock | $ 200,000,000 | ||||||
Original issuance costs on preferred shares redeemed during the period | $ 6,400,000 | ||||||
Series R Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 6.35% | 6.35% | |||||
Aggregate liquidation value (at par) | $ 487,500,000 | 487,500,000 | $ 487,500,000 | ||||
EITF D-42 allocations | $ 15,500,000 | $ 15,500,000 |
Shareholders_ Equity (Preferred
Shareholders’ Equity (Preferred Shares Outstanding) (Details) - USD ($) $ in Thousands | May 17, 2016 | Jan. 20, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding | 147,700 | 147,700 | 162,200 | ||
Liquidation Preference | $ 3,692,500 | $ 4,055,000 | |||
Series O Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend Rate % | 6.875% | ||||
Series Q Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Apr. 14, 2016 | ||||
Dividend Rate % | 6.50% | ||||
Preferred stock, shares outstanding | 15,000 | ||||
Liquidation Preference | $ 375,000 | ||||
Series R Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jul. 26, 2016 | ||||
Dividend Rate % | 6.35% | 6.35% | |||
Preferred stock, shares outstanding | 19,500 | ||||
Liquidation Preference | $ 487,500 | ||||
Series S Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jan. 12, 2017 | ||||
Dividend Rate % | 5.90% | ||||
Preferred stock, shares outstanding | 18,400 | 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% | ||||
Preferred stock, shares outstanding | 18,500 | 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% | ||||
Preferred stock, shares outstanding | 11,500 | 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% | ||||
Preferred stock, shares outstanding | 19,800 | 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% | ||||
Preferred stock, shares outstanding | 20,000 | 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% | ||||
Preferred stock, shares outstanding | 9,000 | 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% | ||||
Preferred stock, shares outstanding | 11,400 | 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% | ||||
Preferred stock, shares outstanding | 11,500 | 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% | ||||
Preferred stock, shares outstanding | 7,600 | 7,600 | 7,600 | ||
Liquidation Preference | $ 190,000 | $ 190,000 | |||
Series B Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jan. 20, 2021 | ||||
Dividend Rate % | 5.40% | 5.40% | |||
Preferred stock, shares outstanding | 12,000 | 12,000 | |||
Liquidation Preference | $ 300,000 | ||||
Series C Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | May 17, 2021 | ||||
Dividend Rate % | 5.125% | 5.125% | |||
Preferred stock, shares outstanding | 8,000 | 8,000 | |||
Liquidation Preference | $ 200,000 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | |
Related Party Transaction [Line Items] | ||
Hughes Family percentage ownership of common shares outstanding | 14.30% | |
PS Canada [Member] | ||
Related Party Transaction [Line Items] | ||
Number of self-storage facilities Hughes Family owns and operates in Canada | item | 56 | |
Tenants reinsurance premiums earned by Public Storage from the Canadian facilities Hughes Family has an interest in | $ | $ 0.3 | $ 0.2 |
Ownership interest | 0.00% |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative effect of a change in accounting principle | $ 0.8 | |||
Expiration period, number of years | 10 years | |||
Compensation expense | $ 1 | $ 0.8 | $ 1.9 | $ 1.5 |
Stock options granted | 235,000 | |||
Stock options exercised | 95,344 | |||
Stock options forfeited | 0 | |||
Per diluted common shares | $ 1.61 | $ 1.52 | $ 3 | $ 2.75 |
Stock options outstanding | 2,079,935 | 1,940,279 | 2,079,935 | 1,940,279 |
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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted share units granted | 129,624 | ||||
Restricted share units forfeited | 12,132 | ||||
Restricted share units vested | 134,763 | ||||
Common shares issued upon vesting | 81,430 | ||||
Tax deposits made in exchange for RSUs | $ 13,304 | $ 13,591 | |||
Common shares withheld upon vesting in exchange for tax deposits | 53,333 | ||||
Restricted share units outstanding | 720,117 | 720,117 | 737,388 | ||
Restricted share unit expense | $ 7,500 | $ 6,600 | $ 14,500 | 13,000 | |
Taxes incurred upon vesting of restricted share units | $ 100 | $ 100 | $ 1,000 | $ 1,000 | |
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 5 years | ||||
Maximum [Member] | Restricted Share Units [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 | ||||
Minimum [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 5 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Self-storage facilities | $ 594,387 | $ 551,028 | $ 1,168,973 | $ 1,081,665 |
Ancillary operations | 39,801 | 37,587 | 77,001 | 71,829 |
Total revenues | 634,188 | 588,615 | 1,245,974 | 1,153,494 |
Self-storage cost of operations | 157,687 | 147,826 | 317,550 | 309,068 |
Ancillary cost of operations | 14,317 | 13,271 | 27,740 | 24,041 |
Total Cost of Operations | 172,004 | 161,097 | 345,290 | 333,109 |
Net Operating Income - Self-Storage Operations | 436,700 | 403,202 | 851,423 | 772,597 |
Net Operating Income - Ancillary Operations | 25,484 | 24,316 | 49,261 | 47,788 |
Total Net Operating Income | 462,184 | 427,518 | 900,684 | 820,385 |
Depreciation and amortization | (107,013) | (106,473) | (212,141) | (213,619) |
General and administrative | (18,321) | (20,988) | (41,368) | (45,148) |
Interest and other income | 4,028 | 3,815 | 7,864 | 7,852 |
Interest expense | (1,378) | (2,089) | ||
Equity in earnings of unconsolidated real estate entities | 10,227 | 7,480 | 24,391 | 23,664 |
Foreign currency exchange gain (loss) | 8,632 | (2,322) | ||
Gain on real estate investment sales | 16,688 | 689 | 18,160 | |
Net income (loss) | 358,359 | 328,040 | 675,708 | 611,294 |
Self-Storage Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Self-storage facilities | 594,387 | 551,028 | 1,168,973 | 1,081,665 |
Total revenues | 594,387 | 551,028 | 1,168,973 | 1,081,665 |
Self-storage cost of operations | 157,687 | 147,826 | 317,550 | 309,068 |
Total Cost of Operations | 157,687 | 147,826 | 317,550 | 309,068 |
Net Operating Income - Self-Storage Operations | 436,700 | 403,202 | 851,423 | 772,597 |
Total Net Operating Income | 436,700 | 403,202 | 851,423 | 772,597 |
Depreciation and amortization | (107,013) | (106,473) | (212,141) | (213,619) |
Net income (loss) | 329,687 | 296,729 | 639,282 | 558,978 |
Ancillary Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Ancillary operations | 39,801 | 37,587 | 77,001 | 71,829 |
Total revenues | 39,801 | 37,587 | 77,001 | 71,829 |
Ancillary cost of operations | 14,317 | 13,271 | 27,740 | 24,041 |
Total Cost of Operations | 14,317 | 13,271 | 27,740 | 24,041 |
Net Operating Income - Ancillary Operations | 25,484 | 24,316 | 49,261 | 47,788 |
Total Net Operating Income | 25,484 | 24,316 | 49,261 | 47,788 |
Net income (loss) | 25,484 | 24,316 | 49,261 | 47,788 |
Invesment in PSB [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 7,869 | 5,516 | 15,200 | 15,411 |
Net income (loss) | 7,869 | 5,516 | 15,200 | 15,411 |
Investment In Shurgard Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 1,706 | 1,355 | 7,942 | 7,091 |
Net income (loss) | 1,706 | 1,355 | 7,942 | 7,091 |
Other Items Not Allocated To Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative | (18,321) | (20,988) | (41,368) | (45,148) |
Interest and other income | 4,028 | 3,815 | 7,864 | 7,852 |
Interest expense | (1,378) | (2,089) | ||
Equity in earnings of unconsolidated real estate entities | 652 | 609 | 1,249 | 1,162 |
Foreign currency exchange gain (loss) | 8,632 | (2,322) | ||
Gain on real estate investment sales | 16,688 | 689 | 18,160 | |
Net income (loss) | $ (6,387) | $ 124 | $ (35,977) | $ (17,974) |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | Jun. 30, 2016USD ($)item |
Commitments And Contingencies [Abstract] | |
Deductible for property | $ 25,000,000 |
Deductible for general liability | 2,000,000 |
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 | 923,000 |
Aggregate coverage of tenants participating in insurance program | $ 2,700,000,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ / shares in Units, $ in Thousands, shares in Millions, ft² in Millions | Jul. 20, 2016USD ($)$ / sharesshares | Aug. 03, 2016USD ($)ft²item | Jun. 30, 2016USD ($) |
Subsequent Event [Line Items] | |||
Proceeds from issuance of preferred stock | $ | $ 483,678 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 21 | ||
Net rentable square feet | ft² | 1.7 | ||
Acquisition Cost, Real Estate Facilities | $ | $ 169,400 | ||
Subsequent Event [Member] | Series D Preferred Stock [Member] | |||
Subsequent Event [Line Items] | |||
Number of stock issued in sale | shares | 13 | ||
Preferred shares per depositary share | 0.10% | ||
Issuance price per depository share | $ / shares | $ 25 | ||
Preferred Stock, Dividend Rate, Percentage | 4.95% | ||
Proceeds from issuance of preferred stock | $ | $ 325,000 | ||
Original issuance costs on preferred shares redeemed during the period | $ | $ 10,600 | ||
Oklahoma [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 11 | ||
Kentucky [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 4 | ||
Ohio [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 2 | ||
Georgia [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 1 | ||
Colorado [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 1 | ||
Michigan [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 1 | ||
Utah [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of self-storage facilities to be acquired | 1 |