Real Estate Facilities

9 Months Ended

Sep. 30, 2021

Activity in real estate facilities during the nine months ended September 30, 2021 is as follows:


	Nine Months Ended September 30, 2021
	(Amounts in thousands)
Operating facilities, at cost:
Beginning balance	$	17,372,627
Capital expenditures to maintain real estate facilities	177,641
Acquisitions	2,741,952
Dispositions	(6,783)
Developed or expanded facilities opened for operation	171,086
Ending balance	20,456,523
Accumulated depreciation:
Beginning balance	(7,152,135)
Depreciation expense	(450,757)
Dispositions	4,396
Ending balance	(7,598,496)
Construction in process:
Beginning balance	188,079
Costs incurred to develop and expand real estate facilities	211,386
Developed or expanded facilities opened for operation	(171,086)
Ending balance	228,379
Total real estate facilities at September 30, 2021	$	13,086,406

During the nine months ended September 30, 2021, we acquired 126 self-storage facilities (10,295,000 net rentable square feet of storage space), for a total cost of $2.8 billion in cash. Approximately $103.3 million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $171.1 million during the nine months ended September 30, 2021, adding 1.2 million net rentable square feet of self-storage space. Construction in process at September 30, 2021 consists of projects to develop new self-storage facilities and expand existing self-storage facilities.

During the nine months ended September 30, 2021, our accrual for unpaid construction costs increased $7.4 million (a $2.9 million increase for the same period in 2020). During the nine months ended September 30, 2021, our accrual for capital expenditures to maintain real estate facilities increased $7.9 million (a $6.9 million decrease for the same period in 2020).

During the nine months ended September 30, 2021, we sold portions of real estate facilities in connection with eminent domain proceedings for $16.1 million in cash proceeds and recorded a related gain on sale of real estate of approximately $13.7 million.