Public Storage 2014 Annual Report Download - page 24

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10
upon our financing needs and capital market conditions at the time, including the market prices of our
equity securities.
Joint Venture financing: We have used joint ventures with institutional investors and we may
form additional joint ventures in the future, primarily to buy or develop self-storage facilities.
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 (the “Board”) without a shareholder vote:
x 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.
x 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.
x 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.
x 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 2,223 self-storage facilities in the U.S. and one self-storage
facility in London, England at December 31, 2014, we have controlling indirect interests in entities that
own 14 self-storage facilities in the U.S. 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, 2014, we also had ownership interests in entities that we do not control or
consolidate. These entities include PSB, Shurgard Europe (each discussed above), and various limited
partnerships that own an aggregate of 13 self-storage facilities. 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, 2014
financial statements for further disclosure regarding the assets, liabilities and operating results of the
Unconsolidated Real Estate Entities.