Public Storage 2010 Annual Report Download - page 98

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
F-16
4. Real Estate Facilities
Activity in real estate facilities during 2010, 2009 and 2008 is as follows:
2010
2009
2008
(Amounts in thousands)
Operating facilities, at cost:
Beginning balance ..................................................................... $ 10,292,955
$ 10,207,022
$ 11,658,807
Capital improvements................................................................ 77,500
62,352
76,311
Acquisition of real estate facilities ............................................ 222,580
-
52,932
Newly developed facilities opened for operations ..................... 13,358
30,978
93,416
Disposition of real estate facilities ............................................. (16,665)
(9,419)
(1,522)
Impairment of real estate facilities ............................................ (1,735)
-
-
Impact of foreign exchange rate changes .................................. (646)
2,022
93,200
Disposition of an interest in Shurgard Europe (Note 3) ............. -
-
(1,766,122)
Ending balance .......................................................................... 10,587,347
10,292,955
10,207,022
Accumulated depreciation:
Beginning balance ..................................................................... (2,734,449)
(2,405,473)
(2,128,225)
Depreciation expense ................................................................ (336,856)
(332,431)
(347,895)
Disposition of real estate facilities ............................................. 9,645
4,033
328
Impact of foreign exchange rate changes .................................. 201
(578)
(2,279)
Disposition of an interest in Shurgard Europe (Note 3) ............. -
-
72,598
Ending balance .......................................................................... (3,061,459)
(2,734,449)
(2,405,473)
Construction in process:
Beginning balance ..................................................................... 3,527
20,340
51,972
Current development ................................................................. 16,759
14,165
74,611
Newly developed facilities opened for operation ...................... (13,358)
(30,978)
(93,416)
Disposition of an interest in Shurgard Europe (Note 3) ............. -
-
(10,886)
Write off of development costs ................................................. -
-
(2,898)
Impact of foreign exchange rate changes .................................. -
-
957
Ending balance .......................................................................... 6,928
3,527
20,340
Total real estate facilities at December 31, ................................... $ 7,532,816
$ 7,562,033
$ 7,821,889
During 2010, we acquired 42 operating self-storage facilities (2,660,000 net rentable square feet) from
third parties for $239,643,000, consisting of the assumption of mortgage debt with an aggregate fair value of
$131,698,000 and $107,945,000 of cash. The aggregate cost was allocated $222,580,000 to real estate
facilities, $17,280,000 to intangibles and $217,000 to other liabilities. For the year ended December 31, 2010,
we also incurred $2,563,000 in transaction costs related to the acquisitions. These amounts were included in
general and administrative expense on our accompanying consolidated statements of income.
During 2010, we completed three expansion projects to existing facilities at an aggregate cost of
$13,358,000. During 2010, net proceeds with respect to dispositions totaled $15,210,000 and we recorded a
JDLQ RI   LQFOXGHG LQ ³JDLQV RQ GLVSRVLWLRQ RI UHDO HVWDWH IDFLOLWLHV QHW´ DQG ,000
included in discontinued operations).
During 2009, we completed one newly developed facility and various expansion projects to existing
facilities at an aggregate cost of $30,978,000. During 2009, net proceeds with respect to dispositions included
$11,596,000 in cash and an other asset valued at $2,941,000. We recorded an aggregate gain of approximately
$9,151,000, of which $6,018,000 is included in discontinued operations and $3,133LVLQFOXGHGLQ³JDLQVRQ
disposition of real estate investmenWVQHW´
During 2008, we completed two newly developed facilities at a total cost of $13,431,000, as well as
various expansion projects at a total cost of $46,522,000. During the first quarter of 2008, prior to its
deconsolidation, Shurgard Europe opened real estate facilities at a total cost of $33,463,000. During 2008, we
acquired four self-storage facilities in the U.S. from third parties, and three facilities previously owned by the