8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

March 20, 2006

Date of Report (Date of earliest event reported)

Shurgard Storage Centers, Inc.

(Exact name of registrant as specified in charter)

Washington	001-11455	91-1603837
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

1155 Valley Street, Suite 400

Seattle, Washington 98109-4426

(Address of principal executive offices) (Zip Code)

(206) 624-8100

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On March 20, 2006, Shurgard Storage Centers, Inc. (the “Company”) issued an earnings release announcing its financial results for the three-month and full year periods ended December 31, 2005. A copy of this earnings release is attached hereto as Exhibit 99.1.

On March 20, 2006, the Company posted on its website at www.investorrelations.shurgard.com supplemental information relating to its financial results for the three-month and full year periods ended December 31, 2005. A copy of this supplemental information is attached hereto as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release dated March 20, 2006
99.2	Supplemental Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Shurgard Storage Centers, Inc.
Dated: March 20, 2006	By:	/s/ Devasis Ghose
		Name:	Devasis Ghose
		Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

PRESS RELEASE

1155 Valley Street, Suite 400, Seattle, Washington 98109-4426 • Telephone: (206) 624-8100 Fax: (206) 624-1645

Investor and Analyst Contact:	Release Number:	06-02
Dev Ghose
Stuart Blackie
(206) 624-8100
Media Contact
Alan Oshiki
Broadgate Consultants, Inc.
(212) 232-2354

SHURGARD ANNOUNCES FOURTH QUARTER AND 2005 ANNUAL RESULTS

SEATTLE, WASHINGTON, March 20, 2006 . . . Shurgard Storage Centers, Inc. (NYSE: SHU), a leading self-storage real estate investment trust in the United States and Europe, today released results for the quarter and fiscal year ended December 31, 2005. The Company reported net income to common shareholders of $2.5 million ($0.05 per share) for the fourth quarter of 2005, compared to $3.6 million ($0.08 per share) for the fourth quarter of 2004. For the year ended December 31, 2005, the Company reported a net loss to common shareholders of $494,000 ($0.01 per share), compared to net income to common shareholders of $33.1 million ($0.72 per share) for the year ended December 31, 2004. Results for 2005 were helped by a 26% improvement in income from operations over the previous year, but this was more than offset by higher interest expense, foreign currency exchange losses and costs related to the Company’s exploration of strategic alternatives.

Funds from operations (FFO) attributable to common shareholders for the fourth quarter of 2005 was $23.9 million ($0.50 per share), compared to $25.2 million ($0.53 per share) in the fourth quarter of 2004. FFO in the fourth quarter of 2005 benefited from a 110% increase in income from operations compared to the fourth quarter of 2004 ($0.34 per share). However, this increase was negated by increases in net interest expense (interest expense less interest income and other) of $9.1 million ($0.19 per share) due to higher borrowings and interest rates; fluctuations in foreign currency exchange rates and derivatives between the fourth quarter of 2005 and 2004 resulting in a net negative swing of approximately $7 million ($0.15 per share) and costs incurred in the fourth quarter of 2005 associated with the Company’s previously announced exploration of strategic alternatives totaling $1.1 million ($0.02 per share).

For the year ended December 31, 2005 FFO attributable to common shareholders was $68.5 million ($1.44 per share), compared to $96.3 million ($2.07 per share) for 2004. FFO in 2005 benefited from a 26% increase in income from operations compared to 2004 ($0.46 per share). However, this increase was more than offset by

increases in net interest expense of $24.4 million ($0.51 per share) due to higher borrowings and interest rates; fluctuations in foreign currency exchange rates and derivatives between 2005 and 2004 resulting in a net negative swing of almost $17 million ($0.37 per share) and costs incurred in 2005 associated with the Company’s previously announced exploration of strategic alternatives totaling $13.8 million ($0.29 per share).

David K. Grant, President and Chief Executive Officer commented, “Clearly our net income for the year does not reflect the substantial progress on many fronts that the Company has made in 2005. Our store portfolios in both the US and Europe turned in very strong growth performance over 2004. But more importantly, we have seen a building of momentum throughout the year in our revenue growth, which has continued into the first quarter of 2006. Our overhead cost cutting initiatives announced last summer are beginning to take hold as we have seen significant cost reductions in Europe. Finally, our people who worked tirelessly last year to restore our internal control systems have remediated the material weaknesses noted in 2004 and the Company received an unqualified opinion on management’s assessment of internal control over financial reporting. This accomplishment will help us to significantly reduce our audit and consulting costs going forward.”

Operating Results

Compared to the fourth quarter in 2004 and at constant exchange rates, combined U.S. and Europe Same Store revenue for the fourth quarter 2005 increased by $8.7 million (or 8.6%) to $109.4 million from $100.8 million, and net operating income (NOI) after indirect and leasehold expenses increased by $7.5 million (or 13.5%) to $63 million from $55.5 million. For the year ended December 31, 2005, combined Same Store revenue increased by $31.1 million (or 7.8%) to $430.8 million from $399.7 million, and combined Same Store NOI after indirect and leasehold expenses increased by $18.7 million (or 8.4%) to $240.9 million from $222.1 million during the previous year.

Due primarily to a 5.2% increase in average rental rate, the Company’s domestic Same Store segment generated a 7.1% increase in revenue and a 7.8% increase in NOI after leasehold and indirect expenses in the fourth quarter of 2005, compared to the fourth quarter of 2004. For 2005 annual domestic Same Store revenue and NOI after leasehold and indirect expenses increased 6.4% and 5.0% respectively, compared to 2004.

At constant exchange rates, the European Same Store segment in the fourth quarter of 2005 generated a 14% increase in revenue and a 41.9% increase in NOI after leasehold and indirect expenses, compared to the same quarter in 2004. For 2005, annual revenue and NOI after leasehold and indirect expenses grew 12.5% and 26.6%, respectively, compared to 2004. Average Same Store occupancy in the fourth quarter of 2005 increased to 83% from 74% in the comparable quarter in 2004, with significant gains in all markets, but especially in the Netherlands, Sweden and Denmark.

Portfolio

As of December 31, 2005, Shurgard operated an international network of 646 operating properties containing approximately 40.5 million net rentable square feet. The total includes 484 owned, partially owned or leased storage centers in operation in the United States, 13 storage centers in the United States managed for third parties and 149 owned or partially owned storage centers in Europe.

In the fourth quarter of 2005, the Company opened nine storage centers: one in Florida, adding 60,000 net rentable square feet at a total cost of $5.2 million and eight in Europe (four in France, three in the Netherlands and one in Belgium) adding a total of 430,000 net rentable square feet for a total cost of $48.2 million. During 2005, 27 storage centers were added to the network; three storage centers were developed in the United States, adding 156,000 net rentable square feet for a total cost of $10.8 million; the Company acquired ten storage centers in the United States adding 751,000 net rentable square feet for a total cost of $45.1 million and in Europe the Company developed 14 storage centers, adding 708,000 net rentable square feet for a total cost of $92.5 million. In the fourth quarter of 2005 the Company’s investment in New Stores increased to $604 million, or 19% of the total portfolio, representing 4% of the Company’s NOI after indirect and leasehold expenses in the same period.

There were no sales of storage centers in the fourth quarter, although during 2005, the Company completed the sale of five storage centers: one in Arizona, one in California and three in Washington, for aggregate proceeds of approximately $24.8 million resulting in the realization of aggregate gains of $11.8 million.

As of December 31, 2005, the Company had 15 new storage centers under construction or pending construction (ten in the United States and five in Europe) for an estimated total cost to completion of $107.9 million and two major re-development projects underway in the United States for an estimated total cost of $6 million.

Sarbanes-Oxley Section 404 Compliance

The Company is pleased to announce that management has completed its assessment of internal control over financial reporting for 2005 and reported that the Company’s controls were effective as of December 31, 2005. The Company received an unqualified opinion on its 2005 audit and management’s assessment and operating effectiveness of internal control over financial reporting for 2005.

Box Avenue Acquisition

In January 2006, Shurgard’s European joint venture Second Shurgard SPRL acquired 3S Self-Storage Systems in France, a high-quality self-storage service provider operating under the Box Avenue brand name, for a total consideration, including acquisition costs, of approximately $46 million. The acquisition added nine Box

Avenue self-storage facilities and 343,000 net rentable square feet to the 39 Shurgard storage centers already operating in France, bringing the total number of Shurgard storage centers in Europe to 158. The acquisition reinforces Shurgard’s position as the French self-storage market leader, offering its customers an unmatched network of high-quality sites and services in Paris, Bordeaux, Lille, Lyon, Marseille and the French Riviera. “The acquisition provides a perfect fit for Shurgard’s existing network in France,” said Shurgard Europe Managing Director, Steven De Tollenaere.

Proposed Merger with Public Storage, Inc.

On March 6, 2006, the Company entered into a definitive merger agreement with Public Storage, Inc., subject to shareholder approval and fulfillment or waiver of other closing conditions. Under the terms of the proposed merger each outstanding share of Shurgard’s common stock will be converted into the right to receive 0.82 of a fully paid and non-assessable share of Public Storage common stock, and the Company expects to redeem each series of its outstanding preferred stock in accordance with its terms. Public Storage will assume approximately $1.8 billion of Shurgard’s debt. Holders of Shurgard’s stock options, restricted stock units and shares of restricted stock will receive, subject to adjustments, options exercisable for shares of Public Storage common stock, restricted stock units and restricted shares of Public Storage common stock, respectively. For a more complete description of the terms of the merger agreement and the merger, please see the Company’s Current Report on Form 8-K, filed with the SEC on March 7, 2006.

Supplemental Information

Copies of this press release and supplemental tables relating to the quarter and year ended December 31, 2005 will be available on the Company’s website at http://www.shurgard.com/ir or by request at (206) 624-8100. The Company will host a conference call to discuss fourth quarter results on Tuesday, March 21, 2006 at 11:00am (Pacific). The public is invited to listen to the call live via the Internet by clicking the appropriate links on the Company’s website. The call is also available live on a listen-only basis by dialing (800) 866-5043 (US & CN callers) and (303) 205-0033 (international callers). A taped replay of the conference call will be available via the Internet address listed above until March 28, 2006, or via telephone until March 28, 2006, at (800) 405-2236 (US & CN callers) and (303) 590-3000 (international callers) access code 11056860#.

*  *  *

The Company uses FFO in addition to net earnings to report its operating results. The Company uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts as interpreted by the Securities and Exchange Commission. Accordingly, FFO is defined as net earnings (computed in accordance with U.S. GAAP), excluding gains (losses) on dispositions of interests in depreciated operating

properties and real estate depreciation and amortization expenses. FFO includes the Company’s share of FFO of unconsolidated real estate ventures and discontinued operations and excludes minority interests in FFO. The Company believes FFO is a meaningful disclosure as a supplement to net earnings because net earnings assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The Company believes that the values of real estate assets fluctuate due to market conditions. The Company’s calculation of FFO may not be comparable to similarly titled measures reported by other companies because not all companies calculate FFO in the same manner. FFO is not a liquidity measure and should not be considered as an alternative to cash flows or indicative of cash available for distribution. It also should not be considered an alternative to net earnings, as determined in accordance with U.S. GAAP, as an indication of the Company’s financial performance. A reconciliation of U.S. GAAP net income to FFO is included in the tables attached to this release.

Although net operating income (NOI) is a non-U.S. GAAP measure, the Company believes it is a meaningful measure of operating performance as a supplement to net income because the Company relies on NOI for purposes of making decisions with respect to resource allocations, current property values, segment performance, and comparing period-to-period and market-to-market property operating results. NOI is defined as storage center operations revenues less direct operating and real estate tax expense for each of the Company’s properties. A reconciliation of Same Store and New Store NOI to income (loss) from continuing operations is provided in the tables attached to this release or in supplemental tables posted to our website at http://www.shurgard.com/ir.

This release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities Exchange Act of 1934 as amended. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms or other similar terminology. These statements are only predictions and are inherently uncertain. The Company’s actual results may differ significantly from its expectations due to uncertainties, including the risk that:

• the Company may encounter difficulties in realizing the recently announced proposed merger with Public Storage, Inc. and integrating the two companies; Shurgard or Public Storage may fail to obtain approval of the transaction by their respective shareholders or to satisfy other closing conditions to the transaction;

• the Company may incur additional costs related to its exploration of strategic alternatives and the proposed merger with Public Storage;

• changes in economic conditions in the markets in which the Company operates or competition from new self-storage facilities or other storage alternatives may cause a decline in rent or occupancy rates or delays in rent-up of newly developed properties;

• new developments could be delayed or reduced by zoning and permitting requirements outside of the Company’s control, increased competition for desirable sites, construction delays due to weather, unforeseen site conditions, labor shortages, personnel turnover or scheduling problems with contractors, subcontractors or suppliers;

• the Company may experience increases in the cost of labor, taxes, marketing and other operating and construction expenses;

• tax law changes may change the taxability of future income;

• increases in interest rates or changes to our credit ratings may increase the cost of refinancing long-term debt;

• alternatives for funding the Company’s business plan may be impaired by economic uncertainty due to war or terrorism;

• Shurgard Self Storage SCA, the Company’s wholly owned European subsidiary, may be adversely affected if it is unable to find adequate sites to complete the targeted number of developments in its Second Shurgard joint venture;

• the Company may not maintain compliance with its debt covenants; and

• the Company may be adversely affected by legislation or changes in regulations.

For a discussion of additional risks and other factors that could affect these forward-looking statements and Shurgard’s financial performance, see Shurgard’s report on Form 10-K for the year ended December 31, 2005, filed with the SEC on March 20, 2006. Forward-looking statements are based on estimates as of the date of this release. Except as required by law, we disclaim any obligation to publicly update these forward-looking statements reflecting new estimates, events or circumstances after the date of this release.

INDEX of TABLES TO FOLLOW:

Table 1.	Consolidated Statements of Operations for the three months ended December 31, 2005 and 2004 and for the year ended December 31, 2005, 2004 and 2003.
Table 2.	Consolidated Balance Sheets as of December 31, 2005 and December 31, 2004.
Table 3.	FFO Reconciliation for the three months ended December 31, 2005 and 2004 and for the years ended December 31, 2005, 2004 and 2003.

Table 1: SHURGARD STORAGE CENTERS, INC.

OPERATING RESULTS

Consolidated Statements of Operations for the three months ended December 31, 2005 and 2004 and for the year ended December 31, 2005, 2004 and 2003

(in thousands except share data)

	For the three months ended December 31,						For the year ended December 31,
	2005			2004			2005			2004			2003
	(unaudited)			(unaudited)
Revenue
Storage center operations	$	123,713		$	109,974		$	478,292		$	418,523		$	290,513
Other		1,438			1,214			4,922			5,101			6,877
Total revenue		125,151			111,188			483,214			423,624			297,390
Expenses
Operating		58,227			58,769			232,657			211,055			125,567
Real estate development		1,835			2,327			10,042			4,991			23
Depreciation and amortization		24,913			24,564			95,670			87,399			55,444
Impairment losses and abandoned project losses		1,030			1,267			3,354			2,856			13,889
General, administrative and other		8,360			9,634			35,318			32,961			18,012
Total storage center expenses		94,365			96,561			377,041			339,262			212,935
Income from operations		30,786			14,627			106,173			84,362			84,455
Other income (expense)
Costs related to takeover proposal and exploration of strategic alternatives		(1,063	)		—			(13,775	)		—			—
Interest expense		(28,471	)		(21,156	)		(105,584	)		(81,753	)		(45,653	)
Loss on derivatives		(536	)		(226	)		(2,122	)		(615	)		(2,194	)
Foreign exchange gain (loss)		40			6,740			(9,665	)		6,247			(431	)
Interest income and other, net		241			2,054			3,746			4,361			4,887
Other expense, net		(29,789	)		(12,588	)		(127,400	)		(71,760	)		(43,391	)
Income (loss) before equity in earnings of other real estate investments, net, minority interest and income taxes		997			2,039			(21,227	)		12,602			41,064
Minority interest		4,701			4,253			20,936			16,608			(1,206	)
Equity in earnings of other real estate investments, net		—			46			60			93			(3,099	)
Income tax expense		(294	)		(25	)		(636	)		(72	)		(1,611	)
Income (loss) from continuing operations		5,404			6,313			(867	)		29,231			35,148
Discontinued operations
Income from discontinued operations		102			424			695			2,177			2,490
Gain on sale of discontinued operations		—			(97	)		11,831			16,226			—
Discontinued operations		102			327			12,526			18,403			2,490
Cumulative effect of change in accounting principle		—			—			—			(2,339	)		—
Net income		5,506			6,640			11,659			45,295			37,638
Net income allocation
Preferred stock dividends and other (1)		(3,036	)		(3,039	)		(12,153	)		(12,193	)		(12,082	)
Net income (loss) available to common shareholders	$	2,470		$	3,601		$	(494	)	$	33,102		$	25,556
Basic per share amounts:
Income (loss) from continuing operations available to common shareholders	$	0.05		$	0.07		$	(0.28	)	$	0.37		$	0.57
Total discontinued operations		—			0.01			0.27			0.40			0.06
Cumulative effect of change in accounting principle		—			—			—			(0.05	)		—
Net income (loss) available to common shareholders per share	$	0.05		$	0.08		$	(0.01	)	$	0.72		$	0.63
Diluted per share amounts:
Income (loss) from continuing operations available to common shareholders	$	0.05		$	0.07		$	(0.28	)	$	0.37		$	0.56
Discontinued operations		—			0.01			0.27			0.39			0.06
Cumulative effect of change in accounting principle		—			—			—			(0.05	)		—
Net income (loss) available to common shareholders per share	$	0.05		$	0.08		$	(0.01	)	$	0.71		$	0.62
Distributions per common share	$	0.56		$	0.55		$	2.23		$	2.19		$	2.15

(1) Net of impact of antidilutive securities

Table 2: SHURGARD STORAGE CENTERS, INC.

BALANCE SHEET

Consolidated Balance Sheets as of December 31, 2005 and 2004

(in thousands except share and per data)

	December 31, 2005			December 31, 2004
ASSETS:
Storage centers:
Operating storage centers	$	3,244,258		$	3,143,488
Less accumulated depreciation		(552,171	)		(479,531	)
Operating storage centers, net		2,692,087			2,663,957
Construction in progress		67,073			58,431
Properties held for sale		6,774			8,328
Total storage centers		2,765,934			2,730,716
Cash and cash equivalents		39,778			50,277
Restricted cash		4,972			7,181
Goodwill		27,440			24,206
Other assets		119,248			128,204
Total assets	$	2,957,372		$	2,940,584
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Accounts payable and other liabilities	$	181,435		$	180,652
Lines of credit		583,500			397,300
Notes payable		1,275,720			1,287,202
Total liabilities		2,040,655			1,865,154
Minority interest		116,365			169,232
Commitments and contingencies
Shareholders’ equity:
Series C Cumulative Redeemable Preferred Stock; $0.001 par value; 2,000,000 shares authorized; 2,000,000 shares issued and outstanding; liquidation preference of $50,000		48,115			48,115
Series D Cumulative Redeemable Preferred Stock; $0.001 par value; 3,450,000 shares authorized; 3,450,000 shares issued and outstanding; liquidation preference of $86,250		83,068			83,068
Class A Common Stock, $0.001 par value; 120,000,000 authorized; 47,041,680 and 46,624,900 shares issued and outstanding, respectively		47			47
Additional paid-in capital		1,142,288			1,127,138
Accumulated deficit		(459,586	)		(354,985	)
Accumulated other comprehensive (loss) income		(13,580	)		2,815
Total shareholders’ equity		800,352			906,198
Total liabilities and shareholders’ equity	$	2,957,372		$	2,940,584

Table 3: SHURGARD STORAGE CENTERS, INC.

Funds From Operations (unaudited)

FFO Reconciliation for the three months ended December 31, 2005 and 2004 and for the year ended December 31, 2005, 2004, and 2003

(in thousands except per share data)

	For the three months ended December 31,						For the year ended December 31,
	2005			2004			2005			2004			2003
Net income (1)	$	5,506		$	6,640		$	11,659		$	45,295		$	37,638
Depreciation and amortization (2)		21,378			21,583			81,174			77,131			52,715
Depreciation and amortization from unconsolidated joint ventures and subsidiaries		—			—			—			—			12,150
Loss (gain) on sale of operating properties		40			—			(12,299	)		(16,226	)		(2,238	)
Cumulative effect of change in accounting principle		—			—			—			2,339			—
FFO		26,924			28,223			80,534			108,539			100,265
Preferred distribution and other (3)		(3,005	)		(3,039	)		(12,066	)		(12,193	)		(12,082	)
FFO attributable to common shareholders - Diluted	$	23,919		$	25,184		$	68,468		$	96,346		$	88,183
Weighted-average number of basic shares		46,765			46,416			46,660			45,968			40,406
Effect of dilutive stock based awards		1,178			678			977			658			582
Weighted-average number of diluted shares		47,943			47,094			47,637			46,626			40,988
FFO per share - Diluted	$	0.50		$	0.53		$	1.44		$	2.07		$	2.15
Distributions per common share	$	0.56		$	0.55		$	2.23		$	2.19		$	2.15
(1)    Net income includes the following:
	Q4 2005			Q4 2004			2005 YTD			2004 YTD			2003 YTD
Foreign exchange gain (loss)		40			6,740			(9,665	)		6,247			(431	)
Costs related to takeover proposal and exploration of strategic alternatives		(1,063	)		—			(13,775	)		—			—

(2) Excludes depreciation related to non-real estate assets and minority interests in depreciation and amortization and includes depreciation and amortization of discontinued operations.

(3) Net of impact of antidilutive securities.

EX-99.2

Exhibit 99.2

SUPPLEMENTAL INFORMATION

Table 4.	Segment Totals for the three months and year ended December 31, 2005 and 2004.
Table 5.	Reconciliation of Segment NOI to income from continuing operations for the three months and year ended December 31, 2005 and 2004.
Table 6.	Segment exchange rate differences for the three months and year ended December 31, 2004.
Table 7.	Split of FFO between Shurgard Europe and Shurgard U.S. for the three months and year ended December 31, 2005.
Table 8.	Earnings Per Share for the three months ended December 31, 2005 and 2004 and years ended December 31, 2005, 2004 and 2003.
Table 9.	Segment Key Investment and Operating Data for the three months ended December 31, 2005.
Table 10.	Segment Key Operating Data for the three months ended December 31, 2004.
Table 11.	Domestic Same Store Results for the three months and year ended December 31, 2005 and 2004.
Table 12.	Summary of Operating Self-Storage Properties as of December 31, 2005.
Table 13.	Europe Same Store Results for the three months and year ended December 31, 2005 and 2004.
Table 14.	Annual Comparison for European Same Store of 2005 versus 2004 and quarterly comparison for Europe Same Store of fourth quarter 2005 versus fourth quarter 2004.
Table 15.	Domestic Same Store Vintage Analysis for the three months ended December 31, 2005 and 2004.
Table 16.	European Development Performance Vintage Analysis (in dollars) for the three months ended December 31, 2005 and 2004.
Table 17.	European Development Performance Vintage Analysis (in euros) for the three months ended December 31, 2005 and 2004.
Table 18.	Foreign Exchange Translation for the three months and year ended December 31, 2005 and 2004.
Table 19.	Store Asset Values and Operating Information Schedule for the three months ended December 31, 2005.

Table 4: SHURGARD STORAGE CENTERS, INC.

Segment Totals

Segment Totals for the three months and year ended December 31, 2005 and 2004

(in thousands)

Three months ended December 31, 2005 (unaudited)	Domestic Same Store		Domestic New Store		Europe Same Store		Europe New Store			Other Stores		Discon- tinued Stores			Total
Storage center operations revenue	$	83,688	$	7,290	$	25,756	$	7,145		$	—	$	(166	)	$	123,713
Direct operating expense		28,434		3,490		9,585		5,718			—		(71	)		47,156
Net operating income		55,254		3,800		16,171		1,427			—		(95	)		76,557
Indirect expense		4,272		414		2,592		1,712			—		(30	)		8,960
Leasehold expense		996		170		554		79			—		—			1,799
Indirect and leasehold expense		5,268		584		3,146		1,791			—		(30	)		10,759
Net operating income (loss) after indirect and leasehold expense	$	49,986	$	3,216	$	13,025	$	(364	)	$	—	$	(65	)	$	65,798
Three months ended December 31, 2004 (unaudited)	Domestic Same Store		Domestic New Store		Europe Same Store		Europe New Store			Other Stores		Discon- tinued Stores			Total
Storage center operations revenue	$	78,172	$	2,732	$	24,794	$	4,424		$	816	$	(964	)	$	109,974
Direct operating expense		25,470		1,794		10,696		4,521			241		(278	)		42,444
Net operating income		52,702		938		14,098		(97	)		575		(686	)		67,530
Indirect expense		5,088		281		3,492		1,795			36		(101	)		10,591
Leasehold expense		1,251		10		496		60			—		—			1,817
Indirect and leasehold expense		6,339		291		3,988		1,855			36		(101	)		12,408
Net operating income (loss) after indirect and leasehold expense	$	46,363	$	647	$	10,110	$	(1,952	)	$	539	$	(585	)	$	55,122
Year ended December 31, 2005	Domestic Same Store		Domestic New Store		Europe Same Store		Europe New Store			Other Stores		Discon- tinued Stores			Total
Storage center operations revenue	$	329,002	$	23,432	$	101,819	$	24,698		$	922	$	(1,581	)	$	478,292
Direct operating expense		112,002		11,545		42,592		20,714			349		(587	)		186,615
Net operating income		217,000		11,887		59,227		3,984			573		(994	)		291,677
Indirect expense		16,989		1,453		11,907		6,512			69		(148	)		36,782
Leasehold expense		4,157		379		2,299		325			—		—			7,160
Indirect and leasehold expense		21,146		1,832		14,206		6,837			69		(148	)		43,942
Net operating income (loss) after indirect and leasehold expense	$	195,854	$	10,055	$	45,021	$	(2,853	)	$	504	$	(846	)	$	247,735
Year ended December 31, 2004	Domestic Same Store		Domestic New Store		Europe Same Store		Europe New Store			Other Stores		Discon- tinued Stores			Total
Storage center operations revenue	$	309,228	$	7,010	$	90,948	$	11,161		$	5,195	$	(5,019	)	$	418,523
Direct operating expense		103,583		5,759		41,141		13,973			2,026		(1,777	)		164,705
Net operating income		205,645		1,251		49,807		(2,812	)		3,169		(3,242	)		253,818
Indirect expense		14,975		664		12,025		5,291			276		(336	)		32,895
Leasehold expense		4,114		53		1,892		215			—		—			6,274
Indirect and leasehold expense		19,089		717		13,917		5,506			276		(336	)		39,169
Net operating income (loss) after indirect and leasehold expense	$	186,556	$	534	$	35,890	$	(8,318	)	$	2,893	$	(2,906	)	$	214,649

Table 5: SHURGARD STORAGE CENTERS, INC.

Reconciliation of Segment NOI to income from continuing operations

Reconciliation of Segment NOI to income from continuing operations for the three months and year ended December 31, 2005 and 2004

(in thousands)

	For the three months ended December 31,						For the year ended December 31,
	2005			2004			2005			2004
	(unaudited)			(unaudited)
Consolidated NOI after indirect and leasehold expense	$	65,798		$	55,122		$	247,735		$	214,649
Other revenue		1,438			1,214			4,922			5,101
Other operating expense, net		(312	)		(3,917	)		(2,100	)		(7,181	)
Real estate development expense		(1,835	)		(2,327	)		(10,042	)		(4,991	)
Depreciation and amortization		(24,913	)		(24,564	)		(95,670	)		(87,399	)
Impairment and abandoned project expense		(1,030	)		(1,267	)		(3,354	)		(2,856	)
General, administrative and other		(8,360	)		(9,634	)		(35,318	)		(32,961	)
Costs related to takeover proposal and exploration of strategic alternatives		(1,063	)		—			(13,775	)		—
Interest expense		(28,471	)		(23,279	)		(105,584	)		(82,876	)
Amortization of participation rights discount		—			2,123			—			1,123
Loss on derivatives, net		(536	)		(226	)		(2,122	)		(615	)
Foreign exchange (loss) gain		40			6,740			(9,665	)		6,247
Interest income and other, net		241			2,054			3,746			4,361
Minority interest		4,701			4,253			20,936			16,608
Equity in earnings (losses) of other real estate investments, net		—			46			60			93
Income tax expense		(294	)		(25	)		(636	)		(72	)
(Loss) income from continuing operations	$	5,404		$	6,313		$	(867	)	$	29,231

Table 6: SHURGARD STORAGE CENTERS, INC.

Segment Exchange Rate Differences

Segment exchange rate differences for the three months and year ended December 31, 2004

(in thousands)

Three months ended December 31, 2004 (unaudited)	Europe Same Store (1)			Exchange Difference			Total (2)
Segment revenue	$	22,599		$	2,195		$	24,794
Direct operating and real estate tax expense		9,770			927			10,696
Consolidated NOI		12,830			1,268			14,098
Leasehold expense		449			47			496
NOI after leasehold expense		12,381			1,221			13,602
Indirect operating expense		3,199			293			3,492
Consolidated NOI after indirect and leasehold expense	$	9,182		$	928		$	10,110
Three months ended December 31, 2004 (unaudited)	Europe New Store (1)			Exchange Difference			Total (2)
Segment revenue	$	4,075		$	349		$	4,424
Direct operating and real estate tax expense		4,147			374			4,521
Consolidated NOI		(72	)		(25	)		(97	)
Leasehold expense		55			5			60
NOI after leasehold expense		(127	)		(30	)		(157	)
Indirect operating expense		1,657			138			1,795
Consolidated NOI after indirect and leasehold expense	$	(1,784	)	$	(168	)	$	(1,952	)
Year ended December 31, 2004	Europe Same Store (3)			Exchange Difference			Total (4)
Segment revenue	$	90,485		$	463		$	90,948
Direct operating and real estate tax expense		41,031			110			41,141
Consolidated NOI		49,454			353			49,807
Leasehold expense		1,883			9			1,892
NOI after leasehold expense		47,571			344			47,915
Indirect operating expense		11,998			27			12,025
Consolidated NOI after indirect and leasehold expense	$	35,573		$	317		$	35,890
Year ended December 31, 2004	Europe New Store (3)			Exchange Difference			Total (4)
Segment revenue	$	10,915		$	246		$	11,161
Direct operating and real estate tax expense		13,833			140			13,973
Consolidated NOI		(2,918	)		106			(2,812	)
Leasehold expense		215			—			215
NOI after leasehold expense		(3,133	)		106			(3,027	)
Indirect operating expense		5,256			35			5,291
Consolidated NOI after indirect and leasehold expense	$	(8,389	)	$	71		$	(8,318	)

(1) Amounts are translated from local currencies to U.S. dollars using the average exchange rate for the fourth quarter of 2005 for the purpose of comparison with 2005 results.

(2) Amounts are translated from local currencies to U.S. dollars using the average exchange rate for the fourth quarter of 2004.

(3) Amounts are translated from local currencies to U.S. dollars using the average exchange rate for 2005 for the purpose of comparison with 2005 results.

(4) Amounts are translated from local currencies to U.S. dollars using the average exchange rate for 2004

Table 7: SHURGARD STORAGE CENTERS, INC.

Split of FFO between Shurgard Europe and Shurgard U.S. (unaudited)

For the three months and year ended December 31, 2005

(in thousands)

For the three months ended December 31, 2005	Shurgard Europe 20% owned joint ventures (2)			Shurgard Europe (Excluding joint ventures) (2)			Remainder of Shurgard Storage Centers, Inc.			Consolidated Shurgard Storage Centers, Inc.
Net (loss) income	$	(1,382	)	$	(4,599	)	$	11,487		$	5,506
Depreciation and amortization (1)		344			5,884			15,150			21,378
Loss on sales of operating properties		—			—			40			40
FFO	$	(1,038	)	$	1,285		$	26,677		$	26,924
(in thousands)
For the year ended December 31, 2005	Shurgard Europe 20% owned joint ventures (2)			Shurgard Europe (Excluding joint ventures) (2)			Remainder of Shurgard Storage Centers, Inc.			Consolidated Shurgard Storage Centers, Inc.
Net (loss) income	$	(4,633	)	$	(35,078	)	$	51,370		$	11,659
Depreciation and amortization (1)		1,154			21,023			58,997			81,174
Gain on sales of operating properties		—			—			(12,299	)		(12,299	)
FFO	$	(3,479	)	$	(14,055	)	$	98,068		$	80,534

(1) Excludes depreciation related to non-real estate assets and minority interests in depreciation and amortization and includes depreciation and amortization of discontinued operations.

(2) Balances are presented net of minority interests.

Foreign Exchange and Derivative Losses included in FFO presented above

(in thousands)

For the three months ended December 31, 2005	Shurgard Europe 20% owned joint ventures			Shurgard Europe (Excluding joint ventures)			Remainder of Shurgard Storage Centers, Inc.			Consolidated Shurgard Storage Centers, Inc.
Gain (loss) on derivatives	$	66		$	(138	)	$	(464	)	$	(536	)
Foreign exchange (loss) gain		(21	)		(352	)		413			40
Minority interest		(36	)		—			—			(36	)
Net amount included in FFO	$	9		$	(490	)	$	(51	)	$	(532	)
(in thousands)
For the year ended December 31, 2005	Shurgard Europe 20% owned joint ventures			Shurgard Europe (Excluding joint ventures)			Remainder of Shurgard Storage Centers, Inc.			Consolidated Shurgard Storage Centers, Inc.
(Loss) gain on derivatives	$	(1,706	)	$	(2,367	)	$	1,951		$	(2,122	)
Foreign exchange (loss) gain		(114	)		(7,920	)		(1,631	)		(9,665	)
Minority interest		1,505			1,207			—			2,712
Net amount included in FFO	$	(315	)	$	(9,080	)	$	320		$	(9,075	)

Table 8: SHURGARD STORAGE CENTERS, INC.

EARNINGS PER SHARE

Earnings Per Share for the three months ended December 31, 2005 and 2004 and for the year ended December 31, 2005, 2004 and 2003

	For the three months ended December 31,						For the year ended December 31,
(in thousands except share data)	2005			2004			2005			2004			2004
	(unaudited)			(unaudited)
Results of operations - Numerator
Income (loss) from continuing operations	$	5,404		$	6,313		$	(867	)	$	29,231		$	35,148
Preferred distributions and other		(3,036	)		(3,039	)		(12,153	)		(12,193	)		(12,082	)
Income (loss) from continuing operations available to common shareholders		2,368			3,274			(13,020	)		17,038			23,066
Discontinued operations		102			327			12,526			18,403			2,490
Cumulative effect of accounting changes		—			—			—			(2,339	)		—
Net income (loss) available to common shareholders	$	2,470		$	3,601		$	(494	)	$	33,102		$	25,556
Weighted average share amounts - Denominator
Basic weighted average shares outstanding		46,765			46,416			46,660			45,968			40,406
Effect of dilutive stock based awards		1,178			678			—			658			582
Diluted weighted average shares outstanding		47,943			47,094			46,660			46,626			40,988
Basic per share amounts
Income (loss) from continuing operations available to common shareholders	$	0.05		$	0.07		$	(0.28	)	$	0.37		$	0.57
Discontinued operations		—			0.01			0.27			0.40			0.06
Cumulative effect of accounting changes		—			—			—			(0.05	)		—
Net income (loss) available to common shareholders	$	0.05		$	0.08		$	(0.01	)	$	0.72		$	0.63
Diluted per share amounts
Income (loss) from continuing operations available to common shareholders	$	0.05		$	0.07		$	(0.28	)	$	0.37		$	0.56
Discontinued operations		—			0.01			0.27			0.39			0.06
Cumulative effect of accounting changes		—			—			—			(0.05	)		—
Net income (loss) available to common shareholders	$	0.05		$	0.08		$	(0.01	)	$	0.71		$	0.62

Table 9: SHURGARD STORAGE CENTERS, INC.

SEGMENT KEY INVESTMENT AND OPERATING DATA (unaudited)

Segment key investing and operating data for the three months ended December 31, 2005

Three months ended December 31, 2005

(dollars in thousands except average rent)

	Domestic					Europe (5)					Total
	Amount			% of total		Amount			% of total		Amount		% of total
Same Store (1)
Number of Storage Centers		441		91	%		96		64	%		537	85	%
Segment Revenues	$	83,688		92	%	$	25,756		78	%	$	109,444	88	%
NOI after indirect and leasehold expense	$	49,986		94	%	$	13,025		103	%	$	63,011	96	%
Avg. annual rent per sq. ft.(3)	$	12.38				$	21.40
Avg. sq. ft. occupancy		86	%				83	%
Total Storage Center Costs (4)	$	1,785,614		89	%	$	810,231		68	%	$	2,595,845	81	%
New Store (2)
Number of Storage Centers		43		9	%		53		36	%		96	15	%
Segment Revenues	$	7,290		8	%	$	7,145		22	%	$	14,435	12	%
NOI after indirect and leasehold expense	$	3,216		6	%	$	(364	)	(3	%)	$	2,852	4	%
Avg. sq. ft. occupancy		79	%				48	%
Total Storage Center Costs (4)	$	231,290		11	%	$	372,777		32	%	$	604,067	19	%
Combined New and Same Stores
Number of Storage Centers		484		100	%		149		100	%		633	100	%
Segment Revenues	$	90,978		100	%	$	32,901		100	%	$	123,879	100	%
NOI after indirect and leasehold expense	$	53,202		100	%	$	12,661		100	%	$	65,863	100	%
Total Storage Center Costs (4)	$	2,016,904		100	%	$	1,183,008		100	%	$	3,199,912	100	%

(1) Our definition of Same Store includes existing storage centers acquired prior to January 1 of the previous year as well as developed properties that have been operating for a full two years as of January 1 of the current year. Our definition of Same Store results in the addition of storage centers each year as new acquisitions and developments meet the criteria for inclusion, so we then include these storage centers in the previous year’s comparable data. Other storage companies may define Same Store differently, which will affect the comparability of the data.

(2) Our definition of New Store, as shown in the table above, includes existing domestic facilities that had not been acquired or leased as of January 1 of the previous year as well as developed properties that have not been operating a full two years as of January 1 of the current year.

(3) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period.

(4) Total costs capitalized to storage centers.

(5) We opened one new domestic store and eight new European stores in the fourth quarter of 2005 at respective cost of $5.2 million and $48.2 million.

Table 10: SHURGARD STORAGE CENTERS, INC.

SEGMENT KEY OPERATING DATA (unaudited)

Segment key operating data for the three months ended December 31, 2004

Three months ended December 31, 2004 (1)

(dollars in thousands except average rent)

	Domestic					Europe (5)					Total
	Amount			% of total		Amount			% of total		Amount			% of total
Same Store (2)
Number of Storage Centers		441		94	%		96		71	%		537		89	%
Segment Revenues	$	78,172		97	%	$	22,599		85	%	$	100,771		94	%
NOI after indirect and leasehold expense	$	46,363		99	%	$	9,182		124	%	$	55,545		102	%
Avg. annual rent per sq. ft. (4)	$	11.77				$	21.35
Avg. sq. ft. occupancy		85	%				74	%
New Store (3)
Number of Storage Centers		30		6	%		39		29	%		69		11	%
Segment Revenues	$	2,732		3	%	$	4,075		15	%	$	6,807		6	%
NOI after indirect and leasehold expense	$	647		1	%	$	(1,784	)	(24	%)	$	(1,137	)	(2	%)
Avg. sq. ft. occupancy		64	%				33	%
Combined New and Same Stores
Number of Storage Centers		471		100	%		135		100	%		606		100	%
Segment Revenues	$	80,904		100	%	$	26,674		100	%	$	107,578		100	%
NOI after indirect and leasehold expense	$	47,010		100	%	$	7,398		100	%	$	54,408		100	%

(1) We used the 2005 definition of same store, stores that were sold in 2005 are not included in this analysis

(2) Our definition of Same Store includes existing storage centers acquired prior to January 1 of the previous year as well as developed properties that have been operating for a full two years as of January 1 of the current year. Our definition of Same Store results in the addition of storage centers each year as new acquisitions and developments meet the criteria for inclusion, so we then include these storage centers in the previous year’s comparable data. Other storage companies may define Same Store differently, which will affect the comparability of the data.

(3) Our definition of New Store, as shown in the table above, includes existing domestic facilities that had not been acquired or leased as of January 1 of the previous year as well as developed properties that have not been operating a full two years as of January 1 of the current year.

(4) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period.

(5) Amounts have been translated from local currencies to U.S. dollars at constant exchange rate using the average exchange rate of 2005.

Table 11: SHURGARD STORAGE CENTERS, INC.

DOMESTIC YEAR TO DATE SAME STORE RESULTS (unaudited)

Domestic Same Store Results for the three months and year ended December 31, 2005 and 2004 (1)

	For the three months ended December 31,								For the year ended December 31,
(dollars in thousands except average rent)	2005			2004			% Change		2005			2004			% Change
Segment revenue	$	83,688		$	78,172		7.1	%	$	329,002		$	309,228		6.4	%
Operating expense:
Personnel expenses		9,506			8,507		11.7	%		36,949			34,014		8.6	%
Real estate taxes		6,888			6,155		11.9	%		29,195			26,954		8.3	%
Repairs and maintenance		2,407			2,367		1.7	%		9,432			9,295		1.5	%
Marketing expense		2,582			2,513		2.7	%		9,153			8,503		7.6	%
Utilities and phone expenses		3,042			2,567		18.5	%		11,646			10,793		7.9	%
Cost of goods sold		842			782		7.7	%		4,058			3,661		10.8	%
Store admin and other expenses		3,167			2,579		22.8	%		11,569			10,363		11.6	%
Direct operating and real estate tax expense		28,434			25,470		11.6	%		112,002			103,583		8.1	%
NOI		55,254			52,702		4.8	%		217,000			205,645		5.5	%
Leasehold expense		996			1,251		(20.4	%)		4,157			4,114		1.0	%
NOI after leasehold expense		54,258			51,451		5.5	%		212,843			201,531		5.6	%
Indirect operating expense (2)		4,272			5,088		(16.0	%)		16,989			14,975		13.4	%
NOI after indirect operating and leasehold expense	$	49,986		$	46,363		7.8	%	$	195,854		$	186,556		5.0	%
Avg. annual rent per sq.ft. (3)	$	12.38		$	11.77		5.2	%	$	12.13		$	11.59		4.7	%
Avg. sq.ft. occupancy		86	%		85	%				86	%		84	%
Total net rentable sq.ft.		29,084,000			29,084,000					29,084,000			29,084,000
Number of properties as of December 31th		441			441					441			441

(1) Table includes the total operating results of each storage center regardless of our percentage ownership interest in that storage center.

(2) Indirect operating expense includes certain shared property costs such as district and corporate management, purchasing, national contracts personnel and marketing, as well as certain overhead costs allocated to property operations such as business information technology, legal services, human resources and accounting. Does not include containerized storage operations, internal real estate acquisition cost or abandoned development expense. Indirect operating expense is allocated to storage centers based on number of months in operation during the period.

(3) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period.

Table 12: SHURGARD STORAGE CENTERS, INC.

SUMMARY OF OPERATING SELF STORAGE PROPERTIES (unaudited)

Summary of Operating Self Storage Properties as of December 31, 2005

	Domestic		European		Total
	Number of Properties	Net Rentable Square Feet	Number of Properties	Net Rentable Square Feet	Number of Properties	Net Rentable Square Feet
100% owned or leased	379	24,461,000	103	5,580,000	482	30,041,000
Partially owned or leased, consolidated	105	7,382,000	46	2,354,000	151	9,736,000
Fee managed	13	715,000	—	—	13	715,000
	497	32,558,000	149	7,934,000	646	40,492,000

Table 13: SHURGARD STORAGE CENTERS, INC.

EUROPE YEAR TO DATE SAME STORE RESULTS (in U.S. dollars) (unaudited)

Europe Same Store Results for the three months and year ended December 31, 2005 and 2004 (1)

	For the three months ended December 31,								For the year ended December 31,
(in thousands except average rent)	2005			2004			% Change		2005			2004			% Change
Segment revenue	$	25,756		$	22,599		14.0	%	$	101,819		$	90,485		12.5	%
Operating expense:
Personnel expenses		3,511			3,168		10.8	%		13,863			13,267		4.5	%
Real estate taxes		1,054			909		16.0	%		4,532			4,300		5.4	%
Repairs and maintenance		722			902		(20.0	%)		3,230			3,711		(13.0	%)
Marketing expense		1,235			1,737		(28.9	%)		7,037			7,118		(1.1	%)
Utilities and phone expenses		656			573		14.5	%		2,766			2,456		12.6	%
Cost of goods sold		848			755		12.3	%		3,673			3,230		13.7	%
Store admin and other expenses		1,559			1,725		(9.6	%)		7,491			6,949		7.8	%
Direct operating and real estate tax expense		9,585			9,769		(1.9	%)		42,592			41,031		3.8	%
NOI		16,171			12,830		26.0	%		59,227			49,454		19.8	%
Leasehold expense		554			449		23.4	%		2,299			1,883		22.1	%
NOI after leasehold expense		15,617			12,381		26.1	%		56,928			47,571		19.7	%
Indirect operating expense (3)		2,592			3,199		(19.0	%)		11,907			11,998		(.8	%)
NOI after indirect operating and leasehold expense	$	13,025		$	9,182		41.9	%	$	45,021		$	35,573		26.6	%
Avg. annual rent per sq. ft. (4)	$	21.40		$	21.35		0.2	%	$	22.19		$	22.24		(0.2	%)
Avg. sq. ft. occupancy		83	%		74	%	12.2	%		78	%		71	%	9.9	%
Total net rentable sq. ft.		5,288,000			5,288,000					5,288,000			5,288,000
Number of properties as of December 31th		96			96					96			96

(1) Amounts for both years have been translated from local currencies to U.S. dollars at a constant exchange rate using the following quarterly average exchange rates of 2005: first quarter 1.31; second quarter 1.26; third quarter 1.22; fourth quarter 1.19.

(2) Amounts for both years have been translated from local currencies to U.S. dollars at a constant exchange rate using the following quarterly average exchange rates of 2004: first quarter 1.25; second quarter 1.20; third quarter 1.22; fourth quarter 1.30.

(3) Indirect operating expense includes certain shared property costs such as district and regional management, national contracts personnel and marketing, as well as certain overhead costs allocated to property operations such as business information technology, human resources and accounting. It does not include internal real estate acquisition cost or abandoned development expense. Indirect operating expense is allocated to storage centers based on number of months in operation during the period.

(4) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period.

Table 14: SHURGARD STORAGE CENTERS, INC.

EUROPEAN 2005 QUARTERLY COMPARISON (unaudited)

Annual comparison for European same store of 2005 versus 2004 and the quarterly comparison for European same store in the fourth quarter of 2005 versus fourth quarter 2004

	Number of Properties	2005 Average Occupancy		December 31, 2005 Occupancy		Percent change of 2005 compared to 2004
						Revenue		NOI (after leasehold expense)		Occupancy		Rate
Belgium	17	76	%	78	%	4.4	%	3.9	%	3.1	%	(0.9	%)
Netherlands	22	72	%	78	%	18.0	%	26.2	%	14.3	%	(1.8	%)
France	23	83	%	84	%	12.4	%	21.3	%	10.5	%	1.1	%
Sweden	20	81	%	87	%	14.3	%	26.8	%	13.2	%	1.8	%
Denmark	4	85	%	87	%	28.8	%	52.2	%	26.9	%	(0.1	%)
United Kingdom	10	77	%	81	%	8.0	%	12.5	%	10.6	%	(4.2	%)
Europe Totals	96	78	%	82	%	12.5	%	19.7	%	9.9	%	(0.2	%)
	Number of Properties	Q4 2005 Average Occupancy		December 31, 2005 Occupancy		Percent change of fourth quarter 2005 compared to prior year quarter
						Q4 Segment Revenue		Q4 NOI (after leasehold expenses)		Q4 Occupancy		Q4 Rate
Belgium	17	79	%	78	%	8.1	%	14.3	%	6.8	%	(0.9	%)
Netherlands	22	79	%	78	%	20.6	%	75.1	%	19.8	%	(4.1	%)
France	23	86	%	84	%	12.0	%	17.9	%	8.4	%	2.6	%
Sweden	20	86	%	87	%	17.4	%	29.2	%	15.7	%	2.6	%
Denmark	4	88	%	87	%	18.5	%	6.7	%	18.4	%	0.3	%
United Kingdom	10	80	%	81	%	9.9	%	10.0	%	6.6	%	1.0	%
Europe Totals	96	83	%	82	%	14.0	%	26.1	%	12.2	%	0.2	%

Table 15: SHURGARD STORAGE CENTERS, INC.

DOMESTIC QUARTER TO DATE SAME STORE VINTAGE TABLE (unaudited)

Domestic Same Store Vintage Analysis for the three months ended December 31, 2005 and 2004

	Number of Properties	(in millions) Total Storage Center Cost (1)		Total Net Rentable square feet	Average Occupancy				Average Annual Rent (per sq. ft) (2)				(in thousands) Segment Revenue				(in thousands) NOI (after leasehold expense)
					Three months ended				Three months ended				Three months ended				Three months ended
					12/31/2005		12/31/2004		12/31/2005		12/31/2004		12/31/2005		12/31/2004		12/31/2005		12/31/2004
Same Store since 2005	34	$	180.3	2,321,000	84	%	80	%	$	12.75	$	12.27	$	6,711	$	6,130	$	3,759	$	3,454
Same Store since 2004	59		221.6	4,424,000	82	%	79	%		8.90		8.30		8,850		7,824		5,501		5,156
Same Store since 2003 or prior	348		1,383.7	22,339,000	87	%	86	%		13.00		12.35		68,127		64,218		44,998		42,841
Same Store total	441	$	1,785.6	29,084,000	86	%	85	%	$	12.38	$	11.77	$	83,688	$	78,172	$	54,258	$	51,451

(1) Total capitalized costs to storage centers since the store was acquired or developed.

(2) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period.

Table 16: SHURGARD STORAGE CENTERS, INC.

EUROPEAN DEVELOPMENT (in U.S. dollars) (unaudited)

European Development Performance Vintage Analysis for the three months ended December 31, 2005 and 2004

	Number of Prop- erties	(in millions) Storage Center Cost				Total Net Rentable square feet	Average Occupancy				Average Annual Rent (per sq. ft) (3) (4)				(in thousands) Segment Revenue (3)				(in thousands) NOI (3) (after leasehold expense)
		Devel- opment Cost (1)		Total Cost (2)			For the three months ended December 31,				For the three months ended December 31,				For the three months ended December 31,				For the three months ended December 31,
							2005		2004		2005		2004		2005		2004		2005			2004
New store:
Opened in 2005
Belgium	1	$	5.8	$	5.8	55,000	2.6	%	—			N/A	$	—	$	1	$	—	$	(68	)	$	—
Netherlands	3		10.9		10.9	138,000	1.6	%	—			N/A		—		1		—		(205	)		—
Germany	2		11.7		11.8	93,000	9.2	%	—		$	17.66		—		45		—		(210	)		—
France	5		36.8		37.0	292,000	8.5	%	—			12.77		—		99		—		(696	)		—
Denmark	1		7.2		7.2	50,000	28.2	%	—			21.67		—		91		—		(42	)		—
United Kingdom	2		20.1		20.3	80,000	22.5	%	—			33.23		—		175		—		(94	)		—
Total opened in 2005	14	$	92.5	$	93.0	708,000	9.8	%	—		$	19.87	$	—	$	412	$	—	$	(1,315	)	$	—
Opened in 2004
Germany	4	$	25.3	$	25.5	202,000	45.2	%	13.9	%	$	16.81	$	19.74	$	406	$	136	$	(57	)	$	(248	)
France	4		22.9		23.2	217,000	37.3	%	5.7	%		18.63		20.24		440		86		80			(291	)
Denmark	2		13.9		14.0	101,000	61.0	%	21.7	%		19.69		18.81		346		131		73			(63	)
United Kingdom	3		29.9		30.3	87,000	53.3	%	30.5	%		47.78		47.81		592		471		221			116
Total opened in 2004	13	$	92.0	$	93.0	607,000	46.1	%	15.6	%	$	23.11	$	30.19	$	1,784	$	824	$	317		$	(486	)
Opened in 2003
Belgium	1	$	3.3	$	4.6	45,000	83.0	%	64.2	%	$	14.08	$	15.01	$	143	$	114	$	87		$	52
Netherlands	7		37.6		40.1	351,000	72.1	%	41.4	%		18.14		21.24		1,208		756		634			71
Germany	5		33.2		33.6	268,000	56.3	%	34.0	%		14.29		14.81		577		344		(43	)		(163	)
France	7		41.4		44.9	372,000	68.6	%	36.3	%		18.94		21.50		1,339		822		726			(60	)
Sweden	2		10.8		13.7	94,000	80.1	%	47.1	%		17.05		17.27		360		218		196			48
Denmark	1		7.4		10.0	49,000	94.2	%	72.4	%		22.88		23.21		288		225		142			91
United Kingdom	3		30.8		39.9	152,000	70.5	%	51.2	%		35.51		39.38		1,034		772		604			320
Total opened in 2003	26	$	164.5	$	186.8	1,331,000	69.5	%	41.9	%	$	19.73	$	22.18	$	4,949	$	3,251	$	2,346		$	359
New Store Total	53	$	349.0	$	372.8	2,646,000	48.2	%	33.3	%	$	20.48	$	23.45	$	7,145	$	4,075	$	1,348		$	(127	)
Same store:
Opened in 2002
Belgium	2	$	7.0	$	10.0	101,000	58.5	%	50.0	%	$	11.57	$	12.87	$	186	$	162	$	87		$	65
Netherlands	7		38.4		54.6	368,000	71.9	%	53.3	%		18.70		19.91		1,310		962		859			308
France	7		40.9		58.8	378,000	79.9	%	66.4	%		19.51		19.25		1,713		1,383		796			580
Sweden	3		17.0		24.7	151,000	89.0	%	74.1	%		20.70		19.31		769		583		487			269
Denmark	2		13.8		19.9	102,000	90.1	%	71.5	%		21.71		20.83		541		414		239			168
United Kingdom	3		32.1		48.6	166,000	79.5	%	71.5	%		35.59		37.76		1,274		1,172		646			650
Total opened in 2002	24	$	149.2	$	216.6	1,266,000	77.7	%	63.2	%	$	21.35	$	21.88	$	5,793	$	4,676	$	3,114		$	2,040
Opened in 2001 and before
Belgium	15	$	67.5	$	100.5	894,000	81.4	%	76.9	%	$	15.88	$	15.90	$	3,202	$	2,970	$	2,191		$	1,928
Netherlands	15		73.4		110.5	821,000	82.3	%	71.6	%		19.88		20.53		3,549		3,068		2,292			1,492
France	16		87.1		131.7	855,000	88.5	%	84.7	%		25.28		24.32		5,364		4,940		3,359			2,941
Sweden	17		86.8		135.6	974,000	86.1	%	74.9	%		19.40		19.04		4,537		3,937		2,695			2,193
Denmark	2		12.7		18.5	107,000	86.0	%	77.0	%		20.73		21.45		528		488		225			267
United Kingdom	7		64.3		96.8	371,000	79.7	%	76.1	%		34.57		33.21		2,783		2,520		1,741			1,520
Total opened before 2002	72	$	391.8	$	593.6	4,022,000	84.2	%	76.9	%	$	21.41	$	21.22	$	19,963	$	17,923	$	12,503		$	10,341
Same Store Total	96	$	541.0	$	810.2	5,288,000	82.6	%	73.7	%	$	21.40	$	21.35	$	25,756	$	22,599	$	15,617		$	12,381

(1) The total development cost of these projects is reported in U.S. dollars translated at the December 31, 2005 exchange rate of $1.18 to the euro. The operating results (see note (3) below) are reported at the average exchange rate for the three months ended December 31, 2005 which was $1.19 to the euro. As these exchange rates are different we believe it does not allow for an accurate measure of property investment yield. We believe the application of a constant exchange rate to both the property cost and operating results would provide a more meaningful measure of investment yield.

(2) The total cost of the storage centers includes additional costs of approximately $293 million we paid to acquire additional interests in Shurgard Europe in 2003 through 2005. The amounts have been translated at the December 31, 2005 exchange rate.

(3) The amounts have been translated from local currencies at a constant exchange rate using the average exchange rate for the three months end December 31, 2005.

(4) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period. On the year of opening the average annual rent is lower as the store had not been opened a full year.

Table 17: SHURGARD STORAGE CENTERS, INC.

EUROPEAN DEVELOPMENT (in Euros) (unaudited)

European Development Performance Vintage Analysis for the three months ended December 31, 2005 and 2004

															(in thousands)				(in thousands)
		(in millions)									Average Annual Rent				Segment				NOI (3)
		Storage Center Cost					Average Occupancy				(per sq. ft) (3) (4)				Revenue (3)				(after leasehold expense)
	Number of Prop- erties	Devel- opment Cost (1)		Total Cost (2)		Total Net Rentable square feet	For the three months ended December 31,				For the three months ended December 31,				For the three months ended December 31,				For the three months ended December 31,
							2005		2004		2005		2004		2005		2004		2005			2004
New store:
Opened in 2005
Belgium	1	€	4.9	€	4.9	55,000	2.6	%	—			N/A	€	—	€	—	€	—	€	(57	)	€	—
Netherlands	3		9.2		9.2	138,000	1.6	%	—			N/A		—		1		—		(173	)		—
Germany	2		9.9		10.0	93,000	9.2	%	—		€	14.85		—		38		—		(176	)		—
France	5		31.0		31.2	292,000	8.5	%	—			10.74		—		84		—		(585	)		—
Denmark	1		6.1		6.1	50,000	28.2	%	—			18.23		—		76		—		(35	)		—
United Kingdom	2		17.0		17.1	80,000	22.5	%	—			27.95		—		147		—		(79	)		—
Total opened in 2005	14	€	78.1	€	78.5	708,000	9.8	%	—		€	16.71	€	—	€	346	€	—	€	(1,105	)	€	—
Opened in 2004
Germany	4	€	21.4	€	21.5	202,000	45.2	%	13.9	%	€	14.14	€	16.60	€	341	€	114	€	(48	)	€	(209	)
France	4		19.4		19.6	217,000	37.3	%	5.7	%		15.67		17.02		370		72		68			(244	)
Denmark	2		11.7		11.8	101,000	61.0	%	21.7	%		16.56		15.82		291		110		61			(53	)
United Kingdom	3		25.2		25.6	87,000	53.3	%	30.5	%		40.18		40.20		498		396		186			98
Total opened in 2004 (a)	13	€	77.7	€	78.5	607,000	46.1	%	15.6	%	€	19.43	€	25.39	€	1,500	€	692	€	267		€	(408	)
Opened in 2003
Belgium	1	€	2.8	€	3.9	45,000	83.0	%	64.2	%	€	11.84	€	12.62	€	121	€	96	€	73		€	44
Netherlands	7		31.7		33.9	351,000	72.1	%	41.4	%		15.26		17.86		1,016		635		533			60
Germany	5		28.0		28.4	268,000	56.3	%	34.0	%		12.02		12.45		485		289		(36	)		(137	)
France	7		35.1		37.9	372,000	68.6	%	36.3	%		15.93		18.08		1,126		693		610			(51	)
Sweden	2		9.1		11.6	94,000	80.1	%	47.1	%		14.34		14.52		303		183		165			40
Denmark	1		6.2		8.4	49,000	94.2	%	72.4	%		19.24		19.52		242		190		119			76
United Kingdom	3		26.0		33.7	152,000	70.5	%	51.2	%		29.86		33.12		870		649		508			269
Total opened in 2003 (b)	26	€	138.9	€	157.8	1,331,000	69.5	%	41.9	%	€	16.59	€	18.66	€	4,163	€	2,735	€	1,972		€	301
New Store Total	53	€	294.7	€	314.8	2,646,000	48.2	%	33.3	%	€	17.22	€	19.72	€	6,009	€	3,427	€	1,134		€	(107	)
Same store:
Opened in 2002
Belgium	2	€	5.9	€	8.4	101,000	58.5	%	50.0	%	€	9.73	€	10.82	€	156	€	136	€	74		€	55
Netherlands	7		32.4		46.1	368,000	71.9	%	53.3	%		15.73		16.74		1,102		809		723			259
France	7		34.5		49.7	378,000	79.9	%	66.4	%		16.41		16.18		1,441		1,163		670			488
Sweden	3		14.4		20.9	151,000	89.0	%	74.1	%		17.41		16.24		646		490		409			226
Denmark	2		11.7		16.8	102,000	90.1	%	71.5	%		18.26		17.52		455		348		201			141
United Kingdom	3		27.1		41.0	166,000	79.5	%	71.5	%		29.93		31.75		1,071		985		544			547
Total opened in 2002 (c)	24	€	126.0	€	182.9	1,266,000	77.7	%	63.2	%	€	17.95	€	18.40	€	4,871	€	3,931	€	2,621		€	1,716
Opened in 2001 and before
Belgium	15	€	57.0	€	84.9	894,000	81.4	%	76.9	%	€	13.35	€	13.37	€	2,693	€	2,498	€	1,842		€	1,621
Netherlands	15		62.0		93.3	821,000	82.3	%	71.6	%		16.72		17.27		2,984		2,580		1,928			1,254
France	16		73.5		111.3	855,000	88.5	%	84.7	%		21.26		20.45		4,512		4,156		2,824			2,473
Sweden	17		73.3		114.5	974,000	86.1	%	74.9	%		16.32		16.01		3,816		3,311		2,266			1,844
Denmark	2		10.7		15.6	107,000	86.0	%	77.0	%		17.43		18.04		444		410		189			225
United Kingdom	7		54.3		81.7	371,000	79.7	%	76.1	%		29.07		27.93		2,340		2,119		1,464			1,279
Total opened before 2002	72	€	330.8	€	501.3	4,022,000	84.2	%	76.9	%	€	18.01	€	17.84	€	16,789	€	15,074	€	10,513		€	8,696
Same Store Total	96	€	456.8	€	684.2	5,288,000	82.6	%	73.7	%	€	18.00	€	17.96	€	21,660	€	19,005	€	13,134		€	10,412

(1) The total development cost of these projects is reported in Euros translated at the December 31, 2005 exchange rate. The operating results (see note (3) below) are reported at the average exchange rate for each quarter in 2005. As these exchange rates are different we believe it does not allow for an accurate measure of property investment yield. We believe the application of a constant exchange rate to both the property cost and operating results would provide a more meaningful measure of investment yield.

(2) The total cost of the storage centers includes additional costs of approximately € 247.5 million we paid to acquire additional interests in Shurgard Europe in 2003 through 2005. The amounts have been translated at the December 31, 2005 exchange rate.

(3) The amounts have been translated from local currencies at a constant exchange rate using the average exchange rate for the fourth quarter of 2005.

(4) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period. On the year of opening the average annual rent is lower as the store had not been opened a full year.

Table 18: SHURGARD STORAGE CENTERS, INC.

FOREIGN EXCHANGE TRANSLATION (unaudited)

Foreign exchange translation for the three months and year ended December 31, 2005 and 2004

With the growth in the Company’s foreign operations, foreign currency translation has a greater impact on the quarterly reporting of our financial results. Foreign currency translation could cause volatility in the reported financial results of the Company and otherwise limit the comparability of operating results and financial position from one period over another. Specifically, generally accepted accounting principles (“GAAP”) prescribe specific foreign currency translation standards. For example, assets and liabilities are translated at the exchange rate in effect at the end of the applicable period. Revenue, expenses, and other components of the income statement and statement of cash flows are shown at the average exchange rate during the applicable period. Revenues and total expenses for Shurgard Europe decreased $2.5 million and $2.8 million, respectively, in the fourth quarter of 2005 over the fourth quarter of 2004. Revenues and total expenses for Shurgard Europe decreased $693,000 and $736,000, respectively, in the year ended 2005 over the year ended 2004. Total assets and total liabilities decreased approximately $126.4 million and $102.4 million, respectively, from December 31, 2004 to December 31, 2005, as a result of exchange rate variances.

The following exchange rates were used for the reported periods:

	As of December 31, 2005		As of December 31, 2004
Closing rate	1.18		1.36
	For the year ended December 31,
	2005	2004
Average rate	1.25	1.24
	For the three months ended
	December 31,		September 30,
	2005	2004	2005	2004
Average rate	1.19	1.30	1.22	1.22
	For the three months ended
	June 30,		March 31,
	2005	2004	2005	2004
Average rate	1.26	1.20	1.31	1.25

Table 19: SHURGARD STORAGE CENTERS, INC.

STORE ASSET VALUES AND OPERATING INFORMATION SCHEDULE (unaudited)

Store asset values and operating information schedule for the three months ended December 31, 2005

(in thousands except for number of properties)	No. of Properties	Ownership interest (4)		Net Rentable Square Feet	Occupancy (Q4 Avg)		Gross Book Value (5)		Applicable debt (6)		Q4 Segment Revenue		Q4 NOI (7)		Q4 Leasehold Expense
Same Store
Domestic wholly owned or leased	354	100	%	22,848	85.8	%	$	1,417,781	$	51,470	$	67,778	$	44,638	$	964
Domestic consolidated joint ventures (1)	87	79	%	6,236	84.9	%		367,833		123,343		15,910		10,616		32
European wholly owned or leased	96	100	%	5,288	83.0	%		810,231		367,922		25,756		16,171		554
Total Same Store	537			34,372	85.2	%	$	2,595,845	$	542,735	$	109,444	$	71,425	$	1,550
New Store
Domestic wholly owned or leased developments	13	100	%	701	70.0	%	$	65,835	$	—	$	1,879	$	747	$	165
Domestic joint ventures developments (1)	13	82	%	804	65.1	%		68,180		—		1,946		936		5
Domestic acquisitions (2)	17	93	%	1,254	85.6	%		97,275		30,350		3,465		2,117		—
European wholly owned or leased developments	6	100	%	254	74.6	%		56,687		22,978		1,376		857		—
European 20% development ventures developments(3)	46	20	%	2,354	44.8	%		301,455		36,946		5,366		296		79
European acquisition (2)	1	100	%	38	78.0	%		14,635		—		403		274		—
Total New Store	96			5,405	62.2	%	$	604,067	$	90,274	$	14,435	$	5,227	$	249
TOTALS	633			39,777	82.1	%	$	3,199,912	$	633,009	$	123,879	$	76,652	$	1,799

1 Includes properties in which we own an interest less than 100% but that are consolidated in our financial statements. The store information and results reflected the full 100% amounts.

2 Includes all stores acquired in 2005 and 2004.

3 Includes properties developed under First and Second Shurgard in which we hold a 20% interest.

4 Represents ownership interest in Net Operating Income (NOI) as of December 31, 2005.

5 The actual completed cost of these projects are reported in U.S. dollars translated at the December 31, 2005 exchange rate of $1.18 to the Euro. Operating results are reported at the average exchange rate for the three months ended December 31, 2005 which was $1.19 to the Euro. As these exchange rates are different we believe it does not allow for an accurate measure of property investment yield. However, we believe the application of a constant exchange rate to both the property cost and operating results may provide a more meaningful measure of investment yield.

6 Applicable debt represents debt secured by asset pool.

7 Represents NOI after Direct Expenses. The indirect expenses not included in NOI for Domestic Same Store, European Same store, Domestic New Store and Europe Store are the following (in thousands except indirect expense per revenue dollar):

	Q4 indirect expense				Q4 segment revenue				Indirect expense per revenue dollar
	Domestic		Europe		Domestic		Europe		Domestic		Europe
Same Store	$	4,272	$	2,592	$	83,688	$	25,756	$	0.05	$	0.10
New Store	$	414	$	1,712	$	7,290	$	7,145	$	0.06	$	0.24