Public Storage 2003 Annual Report Download - page 120

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PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-41
In March 2003, the court granted plaintiffs motion to compel the sale of the units to the plaintiff. On
December 31, 2003, the Company sold the units to the plaintiff for a total of $1,000,000. This amount reflects
the $1,523,000 original agreement with a credit to the plaintiff of a portion of the partnerships distributions
received by the Company with respect to the units.
Other Items
The Company is a party to various claims, complaints, and other legal actions that have arisen in the
normal course of business from time to time, that are not described above. We believe that it is unlikely that the
outcome of these other pending legal proceedings including employment and tenant claims, in the aggregate,
will have a material adverse impact upon the operations or financial position of the Company.
Insurance and Loss Exposure
Our facilities have historically carried comprehensive insurance, including fire, earthquake, liability
and extended coverage through STOR-Re, one of the Consolidated Entities, and insure portions of these risks
through nationally recognized insurance carriers. STOR-Re also insures affiliates of the Company.
The Company, STOR-Re, and its affiliates maximum aggregate annual exposure for losses that are
below the deductibles set forth in the third-party insurance contracts, assuming multiple significant events
occur, is approximately $30 million. In addition, if losses exhaust the third-party insurers limit of coverage of
$125,000,000 for property coverage and $101,000,000 for general liability, our exposure could be greater.
These limits are higher than estimates of maximum probable losses that could occur from individual
catastrophic events (i.e. earthquake and wind damage) determined in recent engineering and actuarial studies.
PS Insurance Company reinsures policies against claims for losses to goods stored by tenants at our
self-storage facilities (see Note 3). PSIC reinsures its risks with third-party insurers from any individual event
that exceeds a loss of $500,000 up to the policy limit of $10,000,000.
Development of Real Estate Facilities
We currently have 38 projects in our development pipeline, including 13 newly developed self-storage
facilities, with total estimated development costs of $156,336,000 (unaudited), of which $69,620,000 has been
spent at December 31, 2003. Development of these facilities is subject to contingencies.