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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
F-20
Other Investments
At December 31, 2013, the “Other Investments” include an average common equity ownership of
approximately 26% in various limited partnerships that collectively own 14 self-storage facilities.
During 2012 and 2011, we began to consolidate limited partnerships that we gained control of, and
recorded gains of $1.3 million and $3.1 million, respectively, representing the differences between the
aggregate fair values of our existing investments and their book values. The fair values of our existing
investments in 2012 and 2011 was allocated to real estate facilities ($10.4 million and $19.4 million,
respectively), intangible assets ($0.9 million and $4.0 million, respectively), noncontrolling interests ($8.2
million and $17.7 million, respectively), and cash ($0.4 million in 2011).
The following table sets forth certain condensed combined financial information (representing 100%
of these entities’ balances, rather than our pro-rata share) with respect to the Other Investments:
2013 2012 2011
(Amounts in thousands)
For the year ended December 31,
Total revenue $ 14,105 $ 13,688 $ 13,271
Cost of operations and other expenses (4,686) (4,398) (5,117)
Depreciation and amortization (2,012) (2,140) (2,252)
N
et income $ 7,407 $ 7,150 $ 5,902
2013 2012
(Amounts in thousands)
As of December 31,
Total assets (primarily self-storage facilities) $ 26,531 $ 27,710
Total accrued and other liabilities 1,412 1,291
Total Partners’ equity 25,119 26,419
5. Loan Receivable from Unconsolidated Real Estate Entity
As of December 31, 2013 and 2012, we had a Euro-denominated loan receivable from Shurgard
Europe (the “Shareholder Loan”) with a balance of €311.0 million at both periods ($428.1 million at
December 31, 2013 and $411.0 million at December 31, 2012), which bears interest at a fixed rate of 9.0% per
annum and has no required principal payments until maturity on February 15, 2015, but can be prepaid in part
or in full at any time without penalty. Because we expected repayment of the Shareholder Loan in the
foreseeable future for all periods presented, foreign exchange rate gains or losses due to changes in exchange
rates between the Euro and the U.S. Dollar are recognized on our income statements as “foreign currency
exchange gain (loss).” For 2013, 2012 and 2011, we recorded interest income with respect to this loan
(representing 51% of the aggregate interest received, see Note 4) of approximately $19.3 million, $18.7 million
and $23.0 million, respectively.
We believe that the interest rate on the Shareholder Loan approximates the market rate for loans with
similar terms, conditions, subordination features, and tenor, and that the fair value of the loan approximates
book value. In our evaluation of market rates and fair value, we considered that Shurgard Europe has sufficient
operating cash flow, liquidity and collateral, and we have sufficient creditor rights such that credit risk is