Public Storage is an American international self-employment company headquartered in Glendale, California, run as a trustworthy real estate investment (REIT). This is the largest independent storage service brand in the US. In 2008, it was the largest of four public REIT storage. There are over 2,200 Storage Storage locations in the US, Canada and Europe. It also has 42 percent of subsidiary office parks, sells packaging supplies, and provides other services. As REIT, it is owned by real estate investors, who receive more than 90 percent of the company's profits as return on investment.
Public Storage Inc. founded in 1972 by B. Wayne Hughes and Kenneth Volk Jr. It grew to 1,000 locations in 1989, using funding from investors in limited real estate partnerships (RELPs). This private company was restructured as a publicly traded REIT in 1995, when the Storage Equity merged with Public Storage and adopted its name. In 2006, he acquired Shurgard Storage Centers in a $ 5.5 billion transaction.
Video Public Storage
Histori
Origins
The Idea for General Storage was conceived by Southern California real estate developer B. Wayne Hughes in the early 1970s. During a trip to Texas, he observed that local real estate developers did well in creating mini storage facilities outside Dallas and Houston; he brought the concept of self-storage back to him to California. Hughes partnered with Kenneth Volk and two Public Storage established in August 1972 with an initial $ 50,000 investment, initially calling it "Private Storage Spaces Inc."
The first warehouse was built in 1972 in El Cajon, California. According to Hughes, consumers think "Personal Storage" means that the storage unit is not publicly available, so its name is changed to "Public Storage" to match the "PS" acronym already present in documents and alerts. The founders originally planned to build a storage warehouse as a temporary source of income until the land became more valuable and could be redeveloped for reuse.
Within three months, the first location was damaged even with 35 percent occupancy. The units are rented at the same price per square foot as apartments or office space, but cost 35 to 50 percent less to build and maintain. A property management subsidiary called Public Storage Management Inc. formed in 1973. In 1974, 20 sites had been built.
Financing Real Estate Partnership Limited
Hughes does not like loans, so he finances the purchase and development of new properties primarily through limited real estate partnerships (RELPs). Initially, General Storage built the warehouse and sold it to independent RELP for development costs. The RELP company itself, called Public Storage Partners Ltd, was formed in 1975 and closed its first deal with an investment of $ 3 million two years later. Public Storage pays cash to purchase property and builds its own storage facility, then uses property income to repay the investors and earn a share as a profit. Public Storage Inc. also earn revenue from some of the transactions made.
Initial investors earned three to four times their money back due to increased property values ​​in Southern California, high occupancy rates, and rising rental rental rates. In the mid-1980s, Public Storage raised $ 200 to $ 300 million in investments each year. The RELP format allowed the company to continue building more locations in the 1970s and 1980s when most industries had stopped growth due to high borrowing rates. In the mid-1980s, the founder of Volk retired and his interest in Public Storage was bought by Hughes.
Investment funds are used to build mini storage warehouses outside California, targeting 39 largest cities in the US. Companies open self-contained storage locations in close proximity to each other, so the site can share development offices, and justify local television ads. The company's growth slowed in the mid-1980s as new competition increased property costs and slowed the rise in rental rates to consumers. Bad weather and difficult labor markets outside California delay development projects; companies also make poor investments in office parks. Interest in real estate investment is also reduced.
In the late 1980s, the company opened its 1000th General Storage site and the company was three times larger than its nearest competitor in the US market. In 1989, $ 2.7 billion was invested from 200,000 investors. Public Storage helped popularize the use of self-storage businesses as a real estate investment vehicle and become one of the longest RELP investment vehicles. In 1991, Public Storage has prepared more than 150 RELP and real estate investment trusts (REIT).
Trust Real Estate Investment (REIT)
According to the World of Finance , in 1989 the real estate market was limited (RELP) that Public Storage depended on "all but gone" funding. A book by Public Storage Inc. said the 1986 Tax Reform Act reduced the tax benefits of RELPs and was followed by "difficult times for real estate companies." In December 1990, five of its partnerships were converted into Real Estate Investment Trusts (REITs) in December. It also began to consolidate its partnerships and acquire many companies in which the company has an interest.
Storage Equity was established by Public Storage in 1980 to purchase its own storage facility. This is one of the 17 independent REIT storage stored by Public Storage. Between 1992 and 1995, Storage Equities paid a $ 31 million Public Storage in management and consulting fees. In 1995, Public Storage and its subsidiaries merged with REIT self-storage, Storage Equities Inc., and re-structured as a single REIT called Public Storage Inc. An analyst said the acquisition was capitalized on a conflict of interest, while Hughes said. The merger was made to relieve them.
In 1995, the company spun out of its box, locked, and packed and moved the supply business to a Orangeco PS subsidiary; Public Storage says this is done to avoid the risk of losing the company's tax-free REIT status if too much part of the company's business is no longer tied to real estate. These frustrated institutional investors can only invest in real estate companies and can no longer invest in new non-real estate subsidiaries. In 1998, Public Storage had $ 141 million in quarterly revenues, $ 2 billion in assets and 1,200 facilities in 38 states. Later that year, Public Storage acquired a rival storage company called Storage Trust Realty in a $ 600 million transaction.
Recent history
Public Storage grew steadily in the early 2000s and added to S & amp; P 500 in 2005. In 2006, the Shurgard Storage Center acquired transactions worth $ 5.5 billion, gaining 624 locations, including 141 in Europe. Public Storage had attempted to acquire the company in 2000 and again in 2005, but his offer was rejected. The company continues to make many acquisitions, such as the purchase of March 30 locations from A-American Self Storage.
Maps Public Storage
Operation
Public Storage is the largest independent storage brand in the US. By 2014, there are 2,250 locations of Public Storage in North America and 193 locations in Europe; The European location is operated by Shurgard Europe, with Public Storage having 49 percent. There are also 2,546 office buildings operated by PS Business Parks, of which Public Storage has a 42 percent entry interest. Canada's largest independent storage business is operated by a separate company that is allowed to use the Public Storage brand.
Self storage locations tend to be in crowded clusters in big cities, especially near highways and intersections. Public Storage has very few employees for the size of the company. Customer access to each storage location is done automatically. Some locations have married couples living on-site and are paid close to the minimum wage to monitor the facility.
Failure to pay rental fee
The contents of the storage unit are prepared for auction if the rental fee is not paid for sixty days. Although the Storage Wars TV show creates an increased interest in auctions, most units do not contain substantial economic value. Sometimes, auctioning a tenant's property may cause a dispute between the Public Storage and the tenant. In 2007, customer belongings were auctioned for not paying as he served the US military in Iraq. After receiving a negative publication, Public Storage apologized and gave him $ 8,000 in compensation for the goods he sold.
Theft, insurance, and damage
In 2005, Public Storage said in a public filing that there was "an increase in the number of claims and litigation against owners and managers of rental properties related to moisture infiltration, which could lead to mold or other property damage." The company lease contract says it is not responsible for the contents of the storage unit, even if the damage is caused by a defect in the unit, and The Wall Street Journal reports that there are "some surprising drugs" for theft or property damage at the facility own storage.
Many Public Storage customers have filed complaints to the Better Business Bureau regarding insurance policies sold by Public Storage representatives, after having stolen their storage units and then rejected their insurance claims. Investigative journalists from TV news stations in California, Kansas, and Washington have reported on consumer difficulties when filing insurance claims for theft with Willis and The New Hampshire Insurance Company, affiliated with General Storage. For example, the claim was rejected because the storage unit has the whole key; affiliated insurers have insufficient evidence to forcibly enter, though robbers often change unit keys in an attempt to hide the robbery. Insurance commissioners in two countries have criticized the practice of insurance companies affiliated with Public Storage. An ongoing class action lawsuit accuses Public Storage of misleading consumers by thinking that insurance premiums are charged on expenses, while a large proportion of those premiums are kept as profit by Public Storage. The sale of this insurance policy does have a high profit, but it generates less than five percent of the company's total revenue.
Financial
Public Storage is a "trust of self-managed real estate investment" (REIT). REIT is an organization that primarily buys and operates real estate investments and returns at least 90 percent of its revenue to investors. It combines the capital of a large number of investors for real estate projects. As of 2008, Public Storage is the largest of four publicly traded REIT-self storage. By 2013, it has a 50 percent profit margin, the third highest in S & amp; P 500. Public Storage has increased 17% annually, including dividends over the last 20 years (in Q1 2016). This is the growth rate that doubles S & amp; P 500.
More than 90 percent of Public Storage revenue comes from self-storage operations; it also provides insurance, product packing, and has 44 percent interest in PS Business Parks. In 1984, PS Reinsurance was formed to sell insurance for the contents of the storage unit. In 1995, PS Orangeco was created as a subsidiary, selling boxes, packaging, truck rentals, and other moving supplies.
Ronald L. Havner, Jr., CEO of Public Storage, earned $ 10.5 million in 2017, 439 times the salary of his company's median workers.
References
External links
- Official website
Source of the article : Wikipedia
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