Public Storage (PSA) Risk Analysis

The financial condition, results of operations and prospects of our business may be adversely affected by additional litigation, loss of key customers and reliance on adept to manage highly competitive markets worldwide, among other things. Conditions beyond our control could cause our results of operations to vary significantly and could harm our business, adversely impacting our business, financial condition and cash flows.

Until the completion of the Merger, NSA and Public Storage operated as independent public companies with respective independent operating partnerships. We expect to benefit from the elimination of duplicative costs associated with supporting a public company platform and the leveraging of state-of-the art technology and systems. However, we will be required to devote significant management attention and resources to integrating the operations of NSA with our own. Potential difficulties we may encounter in the integration process include the following: - the inability to successfully combine the business of NSA with ours in a manner that permits us to achieve the cost savings anticipated to result from the Merger, which would result in some anticipated benefits of the Merger not being realized in the time frame currently anticipated or at all;- the failure to integrate operations and internal systems, programs and controls;- the inability to successfully realize the anticipated value from some of NSA's assets;- lost sales, loss of customers, joint venture partners and other commercial relationships;- the complexities associated with managing the combined company, including the complexity of managing the newly formed JV;- the additional complexities of combining two companies with different histories, cultures, markets, strategies and customer bases;- the failure to retain key employees of either of the two companies that may be difficult to replace;- the disruption of ongoing businesses or inconsistencies in services, standards, controls, procedures and policies;- potential unknown liabilities and unforeseen increased expenses, delays or regulatory conditions associated with the Merger; and - performance shortfalls at as a result of the diversion of management's attention caused by completing the Merger and integrating NSA's and our operations. Any of these risks could adversely affect our ability to maintain relationships with customers, vendors, employees and other commercial relationships. As a result, the anticipated benefits of the Merger may not be realized fully within the expected time frame or at all or may take longer to realize or cost more than expected, which could adversely affect our business, financial condition, results of operations and growth prospects. In addition, changes in laws and regulations could adversely impact our business, financial condition, results of operations and growth prospects.

Litigation could affect our ability to compete, produce products or pursue strategic alternatives. Other pending, threatened or claimed litigation may also significantly affect our results of operations, financial condition and stock price.

Global operations expose us to additional risks including political, economic, legal and social risk factors, as well as the risk of adverse performance by one or more of our international strategic partners or suppliers.