Real Estate Facilities

9 Months Ended

Sep. 30, 2022

Activity in real estate facilities during the nine months ended September 30, 2022 is as follows:


	Nine Months Ended September 30, 2022

	(Amounts in thousands)
Operating facilities, at cost:
Beginning balance	$	22,807,833
Capital expenditures to maintain real estate facilities	329,253
Acquisitions	514,541
Dispositions	(1,704)
Developed or expanded facilities opened for operation	125,971
Ending balance	23,775,894
Accumulated depreciation:
Beginning balance	(7,773,308)
Depreciation expense	(574,374)
Dispositions	1,084
Ending balance	(8,346,598)
Construction in process:
Beginning balance	272,471
Costs incurred to develop and expand real estate facilities	259,854
Developed or expanded facilities opened for operation	(125,971)
Ending balance	406,354
Total real estate facilities at September 30, 2022	$	15,835,650

During the nine months ended September 30, 2022, we acquired 44 self-storage facilities (3.2 million net rentable square feet of storage space), for a total cost of $501.9 million, consisting of $482.0 million in cash and $19.9 million in partnership units in our subsidiary. Approximately $14.4 million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $126.0 million during the nine months ended September 30, 2022, adding 0.9 million net rentable square feet of self-storage space. Construction in process at September 30, 2022 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities.

Additionally, on July 8, 2022, we acquired from PSB the commercial interests in five properties at three sites jointly occupied with certain of our self-storage facilities located in Maryland and Virginia, for $47.3 million. We recognized $27.0 million of real estate assets and $0.7 million of intangibles for the properties acquired, representing the cost of these commercial properties that we did not have interest in through our equity investment in PSB. We recognized the remaining $19.6 million as an increase to our basis in our equity investment in PSB, which represents the elimination of our portion of the gain recorded by PSB.

During the nine months ended September 30, 2022, we sold portions of real estate facilities in connection with eminent domain proceedings for $1.5 million in cash proceeds and recorded a related gain on sale of real estate of approximately $1.5 million.