Real Estate Facilities

9 Months Ended

Sep. 30, 2018

3.Real Estate Facilities

Activity in real estate facilities during the nine months ended September 30, 2018 is as follows:



	Nine Months Ended
	September 30, 2018
	(Amounts in thousands)
Operating facilities, at cost:
Beginning balance	$	14,665,989
Capital expenditures to maintain real estate facilities		93,407
Acquisitions		100,632
Dispositions		(1,686)
Developed or redeveloped facilities opened for operation		278,133
Impact of foreign exchange rate changes		(582)
Ending balance		15,135,893
Accumulated depreciation:
Beginning balance		(5,700,331)
Depreciation expense		(341,464)
Dispositions		121
Impact of foreign exchange rate changes		412
Ending balance		(6,041,262)
Construction in process:
Beginning balance		264,441
Current development		267,411
Developed or redeveloped facilities opened for operation		(278,133)
Ending balance		253,719
Total real estate facilities at September 30, 2018	$	9,348,350

During the nine months ended September 30, 2018, we acquired 16 self-storage facilities (1.0 million net rentable square feet), for a total cost of $107.8 million in cash, of which $7.1 million was allocated to intangible assets. We completed development and redevelopment activities costing $278.1 million during the nine months ended September 30, 2018, adding 2.4 million net rentable square feet of self-storage space. Construction in process at September 30, 2018 consists of projects to develop new self-storage facilities and redevelop existing self-storage facilities, which will build 5.4 million net rentable square feet of storage space at an aggregate estimated cost of approximately $596.4 million. During the nine months ended September 30, 2018, we sold portions of real estate facilities in connection with eminent domain proceedings for $3.4 million in cash proceeds and recorded a related gain on sale of real estate of approximately $1.8 million.