GLENDALE, Calif.--(BUSINESS WIRE)--
Public Storage (NYSE:PSA) announced today the tax treatment of the
Company’s 2010 dividends. For the tax year ended December 31, 2010, 100%
of distributions for the PSA common stock, Equity Shares, Series A and
all the various series of preferred stock for all four quarters were
classified as ordinary income. The Company did not declare a capital
gain distribution, nor did it have any undistributed long-term capital
gain for 2010.
The ordinary income dividends do not constitute “qualified dividend
income.”
This release is based on the preliminary results of work on the
Company’s tax filings and is subject to correction or adjustment when
the filings are completed. The Company is releasing information at this
time to aid those required to distribute Forms 1099 on the Company’s
distributions. No material change in the classification is expected.
Alternative Minimum Tax
Alternative minimum tax adjustments are to be apportioned between a real
estate investment trust (“REIT”) and its shareholders under Internal
Revenue Code Section 59(d). Although regulations have not yet been
issued under that provision, based on regulations issued pursuant to a
similar provision of prior law and the legislative history of the
current provision, it appears that such alternative minimum tax
adjustments are to be apportioned to a REIT’s shareholders to the extent
that the REIT distributes its regular taxable income. It is the
Company’s policy to distribute all of its regular taxable income and
accordingly, all of the Company’s alternative minimum tax adjustments
are being apportioned to the Company’s shareholders.
The Company has determined that -2.64% of each distribution to its
shareholders for the tax year ended December 31, 2010 consists of
alternative minimum tax adjustments (i.e., for each $1 of dividend
reportable by a shareholder, $0.0264 represents a negative alternative
minimum tax adjustment). To determine your share of the Company’s
negative alternative minimum tax adjustments, multiply the aggregate
dollar amount of your reportable 2010 dividends from the Company (the
amount shown in Box 1a of the Company’s 2010 Form 1099-DIV) by -0.0264.
If you are an individual, please refer to Internal Revenue Service Form
6251, Alternative Minimum Tax—Individuals. Your share of alternative
minimum tax adjustments should be input as a negative amount in Part I,
Line 18 (depreciation on assets placed in service after 1986). If you
are a corporation, please refer to Internal Revenue Service Form 4626,
Alternative Minimum Tax—Corporations.
If you have questions, please consult your tax advisor for further
guidance.
Company Information
Public Storage, a member of the S&P 500, The Forbes Global 2000 and FT
Global 500, is a fully integrated, self-administered and self-managed
real estate investment trust that primarily acquires, develops, owns and
operates self-storage facilities. The Company’s headquarters are located
in Glendale, California. At September 30, 2010, the Company had
interests in 2,044 self-storage facilities located in 38 states with
approximately 129 million net rentable square feet in the United States
and 189 storage facilities located in seven Western European nations
with approximately ten million net rentable square feet operated under
the “Shurgard” brand. The Company also owns a 41% common equity interest
in PS Business Parks, Inc. (NYSE:PSB) which owned and operated
approximately 21 million rentable square feet of commercial space,
primarily flex, multi-tenant office and industrial space, at September
30, 2010.
Additional information about Public Storage is available on the
Internet. The Company’s web site is www.publicstorage.com.
Source: Public Storage
Contact:
Public Storage
Clemente Teng
(818) 244-8080