Public Storage 2011 Annual Report Download - page 98

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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
F-18
Other Investments
At December 31WKH³2WKHU,QYHVWPHQWV´LQFOXGHDQDJJUHJDWHFRPPRQHTXLW\RZQHUVKLSRI
approximately 26% in entities that collectively own 17 self-storage facilities and have no debt.
On June 30, 2011, we acquired interests owned by Mr. Hughes (the Company’s then Chairman of the
Board of Trustees), and his family and entities that are wholly owned or controlled by them (collectively, the
³+XJKHV)DPLO\´LQWKUHHOLPLWHGSDUWQHUVKLSVIRUDSSUR[LPDWHO\.3 million in cash.
During 2011, we began to consolidate two of the aforementioned limited partnerships due to a change
of control. As a result, we recorded a gain of $3.1 million on the disposition of our existing investments,
representing the difference between the aggregate fair values of the investments ($6.1 million) and the
aggregate book values ($3.0 million).
The acquisition cost in consolidating these investments totaled $5.7 million, representing the
$6.1 million fair value of our existing investment less $0.4 million in cash held by these limited partnerships
presented, and was allocated to real estate facilities ($19.4 million), intangible assets ($4.0 million), and
permanent noncontrolling interests ($17.7 million).
The following table sets forth certain condensed financial information (representing all of these
entities’ balances and not our pro-rata share) with respect to the Other Investments:
2011
2010
2009
(Amounts in thousands)
For the year ended December 31,
Total revenue ...........................................
$ 14,811
$ 14,268
$ 14,147
Cost of operations and other expenses .....
(5,592)
(5,565)
(5,399)
Depreciation and amortization.................
(2,353)
(2,298)
(1,912)
Net income ........................................
$ 6,866
$ 6,405
$ 6,836
As of December 31,
Total assets (primarily self-storage
facilities) ............................................
$ 31,331
$ 32,371
Total accrued and other liabilities ...........
1,588
787
Total Partners’ equity ..............................
29,743
31,584
5. Loans Receivable from Unconsolidated Real Estate Entities
On February 9, 2011, we loaned PSB $121.0 million. The loan had a six-month term, no prepayment
penalties, and bore interest at a rate of three-month LIBOR plus 0.85% (1.13% per annum for the term of the
loan). For 2011, we recorded interest income of approximately $0.7 million related to the loan. The loan was
repaid in 2011.
As of December 31, 2011, we had a €311.0 million Euro-denominated loan receivable from Shurgard
Europe totaling $402.7 million (€373.7 million totaling $495.2 million at December 31, 2010), which bears
interest at a fixed rate of 9.0% per annum and matures February 15, 2015. For all periods presented, because
we expect repayment of this loan in the foreseeable future, at each respective balance sheet date, foreign
exchange rate gains or losses due to changes in exchange rates between the Euro and the U.S. Dollar are
UHFRJQL]HG LQ LQFRPH XQGHU ³IRUHLJQ FXUUHQF\ JDLQ ORVV´  :Hreceived €62.7 million ($85.8 million) in
principal repayments on this loan during 2011, and a total of €80.9 million in principal repayments on this loan
since its inception on March 31, 2008.