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54
ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk
To limit our exposure to market risk, we are capitalized primarily with preferred and common equity. Our
preferred shares are redeemable at our option generally five years after issuance, but the holder has no redemption
option. Our debt is our only market-risk sensitive portion of our capital structure, which totals $398.3 million and
represents 4.8% of the book value of our equity at December 31, 2011.
We have foreign currency exposures related to our investment in Shurgard Europe, which has a book value
of $375.5 million at December 31, 2011. We also have a loan receivable from Shurgard Europe, which is
denominated in Euros, totaling €311.0 million ($402.7 million) at December 31, 2011.
The table below summarizes annual debt maturities and weighted-average interest rates on our outstanding
debt at the end of each year and fair values required to evaluate our expected cash-flows under debt agreements and
our sensitivity to interest rate changes at December 31, 2011 (dollar amounts in thousands).
2012
2013
2014
2015
2016
Thereafter
Total
Fair Value
Fixed rate debt..................
$ 52,170
$264,851
$ 35,127
$ 30,009
$ 10,065
$ 6,092
$ 398,314
$ 404,802
Average interest rate ........
5.85%
5.73%
5.34%
4.33%
5.59%
5.66%
Variable rate debt (1) .......
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Average interest rate ........
(1) Amounts include borrowings under our line of credit, which expires in March 2012 (and is expected to be extended,
subject to agreeing to satisfactory renewal terms). As of December 31, 2011, we have no borrowings under our line of
credit.
ITEM 8. Financial Statements and Supplementary Data
The financial statements of the Company at December 31, 2011 and December 31, 2010 and for each of the
three years in the period ended December 31, 2011 and the report of Ernst & Young LLP, Independent Registered
Public Accounting Firm, thereon and the related financial statement schedule, are included elsewhere herein.
Reference is made to the Index to Financial Statements and Schedules in Item 15.
ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.