Public Storage 2010 Annual Report Download - page 29

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15
loans and may trigger, through its rights under the related partnership documents, the liquidation of the
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sale of the properties to third parties, with potential loss or reduction to our investment if the liquidation
proceeds were not sufficient.
6KXUJDUG(XURSH¶VDELOLW\WRUHILQDQFHLWV495.2 million loan from us, which is due in March 2013, may be
limited due to market conditions. Shurgard Europe owes us ¼73.7 million ($495.2 million at
December 31, 2010), and this loan is due in March 2013. If Shurgard Europe is unable to obtain financing
to raise funds to repay our loan due to a constrained equity or credit environment or other factors, we may
have to negotiate an equity or debt contribution by our joint venture partner to Shurgard Europe, extend the
loan, or otherwise exercise our lender rights.
6KXUJDUG (XURSH¶V 6DPH 6WRUH RSHUDWLQJ WUHQGV ZHUH UHFHQWO\ QHJDWLYH While Shurgard Europe had a
1.7% increase in revenue in the year ended December 31, 2010, Shurgard Europe had negative revenue
growth in 2009. Shurgard Europe could have reductions in Same Store revenues in the future, which would
adversely impact their operating results and, as a result, the value of our investment in Shurgard Europe.
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the debt owed to Public Storage, due to declining interest coverage ratios and other similar metrics upon
which potential lenders typically base their lending decisions.
We are subject to risks related to our ownership of assets in joint venture structures.
We have interests in several joint ventures that may present additional risks, including without limitation,
the following:
risks related to the financial strength, common business goals and strategies and cooperation of the
venture partner;
the inability to take some actions with respect to the joint venture activities that we may believe are
favorable, if our joint venture partner does not agree;
the risk that we could lose our REIT status based upon actions of the joint ventures if we are unable
to effectively control these indirect investments;
the risk that we may not control the legal entity that has title to the real estate;
the risk that our investments in these entities may not be easily sold or readily accepted as collateral
by our lenders, or that lenders may view assets held in joint ventures as less favorable as collateral;
the risk that the joint ventures could take actions which may negatively impact our preferred shares
and debt ratings, to the extent that we could not prevent these actions;
the risk that we may be constrained from certain activities of our own that we would otherwise deem
favorable, due to non-compete clauses in our joint venture arrangements; and
the risk that we will be unable to resolve disputes with our joint venture partners.