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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
F-15
3. Real Estate Facilities
Activity in real estate facilities during 2013, 2012 and 2011 is as follows:
2013 2012 2011
(Amounts in thousands)
Operating facilities, at cost:
Beginning balance $ 11,033,819 $ 10,773,277 $ 10,587,347
Capital expenditures to maintain real estate
facilities 71,270 67,737 69,777
Acquisitions 1,095,477 198,316 105,360
Dispositions (89) (13,792) (10,528)
Impairment - - (453)
Newly developed facilities opened for operation 85,283 7,244 21,793
Impact of foreign exchange rate changes 496 1,037 (19)
Ending balance 12,286,256 11,033,819 10,773,277
Accumulated depreciation:
Beginning balance (3,738,130) (3,398,379) (3,061,459)
Depreciation expense (360,442) (345,459) (342,758)
Dispositions - 6,099 5,645
Impairment - - 156
Impact of foreign exchange rate changes (242) (391) 37
Ending balance (4,098,814) (3,738,130) (3,398,379)
Construction in process:
Beginning balance 36,243 4,299 6,928
Current development 101,376 10,688 19,164
Acquisitions - 28,500 -
Newly developed facilities opened for operation (85,283) (7,244) (21,793)
Ending balance 52,336 36,243 4,299
Total real estate facilities at December 31, $ 8,239,778 $ 7,331,932 $ 7,379,197
During 2013, we acquired 121 operating self-storage facilities from third parties (8,036,000 net
rentable square feet of storage space) for $1.151 billion in cash and assumed mortgage debt with a fair value of
$6 million. We allocated approximately $1.095 billion to real estate facilities and $62 million to intangible
assets. We completed expansion and development activities during 2013, adding 614,000 net rentable square
feet of self-storage space, at an aggregate cost of $85.3 million. We disposed of real estate for an aggregate of
$0.2 million in cash, recording a gain of approximately $0.1 million in connection with partial condemnations.
Construction in process at December 31, 2013, consists of projects to develop new self-storage facilities and
expand existing self-storage facilities, which would add a total of 1.8 million net rentable square feet of storage
space, for an aggregate estimated cost of approximately $196 million.
The results of operations of the facilities acquired from third parties during 2013 have been included in
our consolidated financial statements since their respective acquisitions dates. The unaudited pro forma data
presented below assumes that the acquisitions occurred as of January 1, 2012, and includes pro forma
adjustments to (i) increase depreciation and amortization expense to the buildings and intangible assets acquired
and (ii) increase interest expense to reflect the financing of the acquisitions with borrowings on our line of
credit, the term loan and the issuance of preferred shares. The unaudited pro forma results have been prepared
for comparative purposes only and do not purport to be indicative of the results of operations that would have
occurred had the acquisitions been consummated on January 1, 2012.