Public Storage 2012 Annual Report Download - page 58

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40
allocations of income to permanent noncontrolling equity interests (and an increased allocation to Shurgard Europe),
and (iii) improved foreign currency exchange rates. These items were partially offset by increased interest and
general and administrative expenses.
Shurgard Europe has a nominal development pipeline. Accordingly, at least in the short-term, our future
earnings from Shurgard Europe will be affected primarily by the operating results of its existing facilities, as well as
the exchange rate between the U.S. Dollar and currencies in the countries Shurgard Europe conducts its business,
principally the Euro.
European Same Store Facilities: The Shurgard Europe Same Store Pool represents the 162 facilities
(8.6 million net rentable square feet, representing 86% of the aggregate net rentable square feet of Shurgard
Europe’s self-storage portfolio) that have been consolidated and operated by Shurgard Europe on a stabilized basis
since January 1, 2010 and therefore provide meaningful comparisons for 2010, 2011 and 2012. We evaluate the
performance of these facilities because Shurgard Europe’s ability to effectively manage stabilized facilities
represents an important measure of its ability to grow its earnings over the long-term.
The following table reflects 100% of the operating results of those 162 facilities, and we restate the
exchange rates used in prior year’s presentation to the actual exchange rates for 2012. However, only our pro rata
share of the operating results for these facilities, based upon the actual exchange rates for each period, is included in
“equity in earnings of unconsolidated real estate entities” on our statements of income.
In Note 4 to our December 31, 2012 financial statements, we disclose Shurgard Europe’s consolidated
operating results for the years ended December 31, 2012, 2011 and 2010. Shurgard Europe’s consolidated operating
results include 26 additional facilities that are not Same Store Facilities, and are based upon historical exchange
rates rather than constant exchange rates for each of the respective periods.