Public Storage 2012 Annual Report Download - page 27

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Joint Venture financing: In the past, we have formed joint ventures, and in the future we may form
additional joint ventures to facilitate the funding of future developments or acquisitions. However, we can generally
issue preferred securities on more favorable terms than joint venture financing.
Disposition of properties: Generally, we have disposed of self-storage facilities only when compelled to
do so through condemnation proceedings. We do not presently intend to sell any significant number of self-storage
facilities in the future, though there can be no assurance that we will not.
Investments in Real Estate and Unconsolidated Real Estate Entities
Investment Policies and Practices with respect to our investments: Following are our investment practices
and policies which, though we do not anticipate any significant alteration, can be changed by our Board of Trustees
without a shareholder vote:
• Our investments primarily consist of direct ownership of self-storage facilities (the nature of our self-
storage facilities is described in Item 2, “Properties”), as well as partial interests in entities that own
self-storage facilities.
• Our partial ownership interests primarily reflect general and limited partnership interests in entities that
own self-storage facilities that are managed by us under the “Public Storage” brand name in the U.S.,
as well as storage facilities managed in Europe under the “Shurgard” brand name which are owned by
Shurgard Europe.
• Additional acquired interests in real estate (other than the acquisition of properties from third parties)
will include common equity interests in entities in which we already have an interest.
• To a lesser extent, we have interests in existing commercial properties (described in Item 2,
“Properties”), containing commercial and industrial rental space, primarily through our investment in
PSB.
Facilities Owned by Subsidiaries
In addition to our direct ownership of 2,049 self-storage facilities in the U.S. and one self-storage facility in
London, England at December 31, 2012, we have controlling indirect interests in entities that own 15 self-storage
facilities in the U.S. with approximately one million net rentable square feet. Due to our controlling interest in each
of these entities, we consolidate the assets, liabilities, and results of operations of these entities in our financial
statements.
Facilities Owned by Unconsolidated Real Estate Entities
At December 31, 2012, we had ownership interests in entities that we do not control or consolidate,
comprised of PSB, Shurgard Europe (discussed above), and various limited partnerships that own an aggregate of 14
self-storage facilities with approximately 0.8 million net rentable square feet of storage space. These entities are
referred to collectively as the “Unconsolidated Real Estate Entities.”
PSB, which files financial statements with the SEC, and Shurgard Europe, have debt and other obligations
that we do not consolidate in our financial statements. None of the other Unconsolidated Real Estate Entities have
significant amounts of debt or other obligations. See Note 4 to our December 31, 2012 financial statements for
further disclosure regarding the assets, liabilities and operating results of the Unconsolidated Real Estate Entities.
Limitations on Debt
Without the consent of holders of the various series of Senior Preferred Shares, we may not take any action
that would result in our “Debt Ratio” exceeding 50%. “Debt Ratio”, as defined in the related governing documents,
represents generally the ratio of debt to total assets before accumulated depreciation and amortization on our balance