Shurgard Storage Centers — Merger or Acquisition (March 2006)
9 slides from Shurgard Storage Centers's merger presentation, Mar 7, 2006
Slide 1: Public Storage / Shurgard Merger
Filed by Public Storage, Inc. Pursuant to Rule 165 and Rule 425(a) under the United States Securities Act of 1933, as amended Subject Company: Shurgard Storage Centers, Inc. Commission File No. 001-11455 Date: March 7, 2006 THE MOST RECOGNIZED BRANDS IN SELF-STORAGE Public Storage / Shurgard Merger
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this presentatio
Slide 3: Terms of Merger
Terms of Merger Combine Public Storage, Inc. (NYSE:PSA) and Shurgard Storage Centers, Inc. (NYSE:SHU) Each share of Shurgard’s common stock will be exchanged for .82 shares of Public Storage’s common stock No caps or collars on share exchange One Shurgard independent director to join Public Storage
Slide 4: Strategic Rationale
Strategic Rationale Operating Synergies General & Administrative Costs 1 PSA: 2.0% of revenues vs. SHU 7.5% of revenues Eliminate redundancies in combined company’s back office and executive infrastructure SOX compliance costs may be substantially reduced Operating Costs 2 Opportunity to potentially
Slide 5: Financial Data
Financial Data ($millions) Combined Combined Company PSA 1 SHU1 Company Percent Revenues U.S. $1,061 $357 $1,418 92% Europe - 125 125 8% Total $1,061 $482 $1,543 100% NOI (before depreciation) U.S. $665 $203 $868 96% Europe - 39 39 4% Total $665 $242 $907 100% 2 Operations Footprint 1,501 facilites
Slide 6: Financial Data
Financial Data ($million, except share price) Combined 1 1 PSA SHU Company 5 Share Price (as of 3/6/06) $79.46 $63.60 $79.46 Common Shares (in millions) 129 47 169 Equity Market Capitalization $10,250 $2,989 $13,429 Debt 150 1,830 1,980 Preferred Stock 2,498 136 2,634 Minority Interest 254 108 362 T
Slide 7: Combined U.S. Portfolio
Combined U.S. Portfolio Property Count 1,984 Domestic Facilities1 NH 2 0 ME Public Storage WA 1,501 42 VT MA 19 0 Shurgard 51 483 MT ND MN 25 19 NY OR 48 11 RI 2 0 WI 24 14 ID 16 0 MI CT 14 0 SD PA 15 28 21 7 NJ: 48 7 WY IA IN OH DE 4 0 NV NE 30 0 WV IL 18 VA 22 0 1 0 UT 99 23 13 41 36 MD: 44 11 CO
Slide 8: European Portfolio (at September 30, 2005)
European Portfolio (at September 30, 2005) Sweden 22 Denmark 8 United Netherlands Kingdom 29 18 Germany Belgium 11 18 France 35 Total Locations: 141 Total Rentable Square Feet: 7,500,000 page 8
Slide 9: Merger Summary
Merger Summary Each share of Shurgard’s common stock will be exchanged for .82 shares of Public Storage common stock Combination of the two best brands in the self-storage industry Combination provides meaningful operating synergies Combination provides expanded growth opportunities Transaction targ
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