Public Storage 2011 Annual Report Download - page 27

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13
Global economic conditions adversely affect our business, financial condition, growth and access to capital.
There continues to be global economic uncertainty, elevated levels of unemployment, reduced levels of
economic activity, and it is uncertain as to when economic conditions will improve. These negative economic
conditions in the markets where we operate facilities, and other events or factors that adversely affect demand for
storage space, could continue to adversely affect our business.
Our ability to issue preferred shares or other sources of capital, such has borrowing, has been in the past,
and may in the future, be adversely affected by challenging credit market conditions. The issuance of perpetual
preferred securities historically has been a significant source of capital to grow our business. We believe that we
have sufficient working capital and capacity under our credit facilities and our retained cash flow from operations to
continue to operate our business as usual and meet our current obligations. However, if we were unable to issue
preferred shares or borrow at reasonable rates, that could limit the earnings growth that might otherwise result from
the acquisition and development of real estate facilities.
The acquisition of existing properties is a significant component of our long-term growth strategy, and
acquisitions of existing properties are subject to risks that may adversely affect our growth and financial
results.
We acquire existing properties, either in individual transactions or as part of the acquisition of other storage
operators. In addition to the general risks related to real estate described above, we are also subject to the following
risks which may jeopardize our realization of benefits from acquisitions.
Any failure to manage acquisitions and other significant transactions and to successfully integrate
acquired operations into our existing business could negatively impact our financial results. To fully realize
anticipated earnings from an acquisition, we must successfully integrate the property into our operating platform.
Failures or unexpected circumstances in the integration process, such as a failure to maintain existing relationships
with tenants and employees due to changes in processes, standards, or compensation arrangements, or circumstances
we did not detect during due diligence, could jeopardize realization of the anticipated earnings.
Acquired properties are subject to property tax reappraisals which may increase our property tax expense.
Facilities that we acquire are subject to property tax reappraisal which can result in substantial increases to the
ongoing property taxes paid by the seller. The reappraisal process is subject to judgment of governmental agencies
regarding estimated real estate values and other factors, and as a result there is a significant degree of uncertainty in
estimating the property tax expense of an acquired property. In connection with future or recent acquisitions of
properties, if our estimates of property taxes following reappraisal are too low, we may not realize anticipated
earnings from an acquisition.