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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
F-15
3. Real Estate Facilities
Activity in real estate facilities during 2014, 2013 and 2012 is as follows:
2014
2013
2012
(Amounts in thousands)
Operating facilities, at cost:
Beginning balance
$
12,286,256
$
11,033,819
$
10,773,277
Capital expenditures to maintain real estate
facilities
79,784
71,270
67,737
Acquisitions
400,514
1,095,477
198,316
Dispositions
(112)
(89)
(13,792)
Newly developed facilities opened
for operation
98,162
85,283
7,244
Impact of foreign exchange rate changes
(1,369)
496
1,037
Ending balance
12,863,235
12,286,256
11,033,819
Accumulated depreciation:
Beginning balance
(4,098,814)
(3,738,130)
(3,398,379)
Depreciation expense
(384,412)
(360,442)
(345,459)
Dispositions
10
-
6,099
Impact of foreign exchange rate changes
696
(242)
(391)
Ending balance
(4,482,520)
(4,098,814)
(3,738,130)
Construction in process:
Beginning balance
52,336
36,243
4,299
Current development
150,399
101,376
10,688
Acquisitions
-
-
28,500
Newly developed facilities opened
for operation
(98,162)
(85,283)
(7,244)
Ending balance
104,573
52,336
36,243
Total real estate facilities at December 31,
$
8,485,288
$
8,239,778
$
7,331,932
During 2014, we acquired 44 self-storage facilities (3,442,000 net rentable square feet), for a total cost
of $430.7 million, consisting of $410.2 million in cash and the assumption of $20.5 million in mortgage debt.
Approximately $30.2 million of the total cost was allocated to intangible assets. We completed expansion and
development activities during 2014, adding 1,145,000 net rentable square feet of self-storage space, at an
aggregate cost of $98.2 million. Construction in process at December 31, 2014 consists of projects to develop
new self-storage facilities and expand existing self-storage facilities, which would add a total of 3.5 million net
rentable square feet of storage space, for an aggregate estimated cost of approximately $411.0 million. We
received approximately $2.6 million in disposition proceeds during 2014.
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.
During 2012, we acquired 24 operating self-storage facilities from third parties (1,908,000 net rentable
square feet of storage space) and unfinished space which was subsequently developed into self-storage space for