Public Storage 2010 Annual Report Download - page 23

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to sell. We do not presently intend to sell any significant number of self-storage facilities in the future, though there
can be no assurance that we will not.
Investments in Real Estate and Real Estate Entities
Investment Policies and Practices with respect to our investments: Following are our investment practices
and policies which, though we do not anticipate any significant alteration, can be changed by our Board of Trustees
without a shareholder vote:
Our investments primarily consist of direct ownership of self-storage facilities (the nature of our self-
storage faciliWLHVLVGHVFULEHGLQ,WHP³3URSHUWLHV´ DV ZHOODVSDUWLDOLQWHUHVWVLQHQWLWLHVWKDWRZQ
self-storage facilities.
Our partial ownership interests primarily reflect general and limited partnership interests in entities that
own self-VWRUDJHIDFLOLWLHVWKDWDUHPDQDJHGE\XVXQGHUWKH³3XEOLF6WRUDJH´EUDQGQDPHin the U.S.,
as well as VWRUDJHIDFLOLWLHVPDQDJHGLQ(XURSHXQGHUWKH³6KXUJDUG´EUDQGQDPH which are owned by
Shurgard Europe.
Additional acquired interests in real estate (other than the acquisition of properties from third parties)
will include common equity interests in entities in which we already have an interest.
To a lesser extent, we have interests in existing commercial properties (described in Item 2,
³3URSHUWLHV´FRQWDLQLQJFRPPHUFLDODQGLQGXVWULDOUHQWDOVSDFHSULParily through our investment in
PSB.
Facilities Owned by Subsidiaries
In addition to our direct ownership of 1,922 self-storage facilities in the U.S. and one self-storage facility in
London, England at December 31, 2010, we have controlling indirect interests in entities that own 107 self-storage
facilities in the U.S. with approximately 6 million net rentable square feet. Due to our controlling interest in each of
these entities, we consolidate the assets, liabilities, and results of operations of these entities in our financial
statements.
Facilities Owned by Unconsolidated Entities
At December 31, 2010, we had ownership interests in (i) PSB, which owned approximately 21.8 million
net rentable square feet of commercial space at December 31, 2010, (ii) Shurgard Europe, which had ownership
interests in 188 facilities with approximately 10 million net rentable square feet of storage space, and (iii) various
affiliated limited partnerships that own an aggregate of 19 self-storage facilities with approximately 1 million net
rentable square feet of storage space. Collectively these entities are referred tRDVWKH³8QFRQVROLGDWHG(QWLWLHV´
PSB, which files financial statements with the SEC, and Shurgard Europe, have debt and other obligations
that are not included in our consolidated financial statements. The limited partnerships have no significant amounts
of debt or other obligations. See Note 5 to our December 31, 2010 consolidated financial statements for further
disclosure regarding the assets, liabilities and operating results of the Unconsolidated Entities.
Limitations on Debt
Without the consent of holders of the various series of Senior Preferred Shares, we may not take any action
that would result in a ratio of ''Debt'' to ''Assets'' (the ''Debt Ratio'') in excess of 50%. As of December 31, 2010, the
Debt Ratio was approximately 4%. ''Debt'' means the liabilities (other than ''accrued and other liabilities'' and
³UHGHHPDEOH QRQFRQWUROOLQJ LQWHUHVWV'') that should, in accordance with U.S. generally accepted accounting
principles, be reflected on our consolidated balance sheet at the time of determination. ''Assets'' means our total
assets before a reduction for accumulated depreciation and amortization that should, in accordance with U.S.
generally accepted accounting principles, be reflected on the consolidated balance sheet at the time of determination.