Shurgard Storage Centers — Merger or Acquisition (March 2006)
9 slides from Shurgard Storage Centers's merger presentation, Mar 8, 2006
Slide 1: Public Storage / Shurgard Merger
Public Storage / Shurgard Merger March 7, 2006 THE MOST RECOGNIZED BRANDS IN SELF-STORAGE
Slide 2: Disclosures
page 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 presen
Slide 3: Terms of Merger
page 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 Pu
Slide 4: Strategic Rationale
page Strategic Rationale Operating Synergies • General & Administrative Costs – PSA: 2.0% of revenues vs. SHU 7.5% of revenues ¹ – Eliminate redundancies in combined company’s back office and executive infrastructure – SOX compliance costs may be substantially reduced • Operating Costs – Opportunity
Slide 5: Financial Data
page Financial Data ($millions) (1) PSA based on 2005 actual and SHU based on nine-months year-to-date 2005 annualized (NOI after indirect and leasehold expenses) (2) PSA at December 31, 2005 and SHU at September 30, 2005 Geographically diversified combined operations with significant growth opportu
Slide 6: Financial Data
page Financial Data ($million, except share price) Combined PSA SHU Company Share Price (as of 3/6/06) $79.46 $63.60 $79.46 Common Shares (in millions) Equity Market Capitalization $10,250 $2,989 $13,429 Debt 1,830 1,980 Preferred Stock 2,498 2,634 Minority Interest Total Capitalization $13,152 $5,0
Slide 7: Combined U.S. Portfolio
NV UT HI KS OK NE MO LA AL CT DE MA NH RI WI OH CA OR WA AZ ID NM CO WY MT TX SD ND IA IL IN KY AR ME VT WV VA TN MS GA FL SC MD: 44 NJ: 48 NC MN MI PA NY Combined U.S. Portfolio Operations overlap Operations do not overlap 1,984 Domestic Facilities ¹ Property Count Public Storage 1,501 Shurgard (1)
Slide 8: Public Storage
°s| Public Storage.
Slide 9: Merger Summary
page 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 • T
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