Property, net

9 Months Ended

Sep. 30, 2020

Property, net:

Property, net consists of the following:


	September 30, 2020		December 31, 2019
Land	$	1,505,884	$	1,520,678
Buildings and improvements	6,423,949		6,389,458
Tenant improvements	731,475		726,533
Equipment and furnishings(1)	198,313		230,215
Construction in progress	81,735		126,165
	8,941,356		8,993,049
Less accumulated depreciation(1)	(2,503,108)		(2,349,536)
	$	6,438,248	$	6,643,513

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at September 30, 2020 and December 31, 2019 (See Note 8—Leases).

Depreciation expense was $71,250 and $72,519 for the three months ended September 30, 2020 and 2019, respectively, and $216,455 and $214,689 for the nine months ended September 30, 2020 and 2019, respectively.

The gain (loss) on sale or write-down of assets, net for the three and nine months ended September 30, 2020 and 2019 consist of the following:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020		2019

Write-down of assets(1)	(1,505)		(212)		$	(42,115)	$	(16,121)

Gain on land sales(2)	13,291		81		13,331		615
	$	11,786	$	(131)	$	(28,784)	$	(15,506)

(1) Includes impairment losses of $30,063 on Wilton Mall and $6,640 on Paradise Valley Mall during the nine months ended September 30, 2020 and a loss of $1,361 and $4,154 on the write-down of non-real estate assets during the three and nine months ended September 30, 2020, respectively. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the three and nine months ended September 30, 2020 and 2019 mainly pertain to the write off of development costs.

(2) Includes noncontrolling interest of $929 for the three and nine months ended September 30, 2020.

The following table summarizes certain of the Company's assets that were measured on a nonrecurring basis as a result of the impairment losses recorded for the nine months ended September 30, 2020, as described above:


	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets		Significant Other Unobservable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
September 30, 2020	$	140,000	$	—	$	140,000	$	—

The fair values relating to the impairments were based on sales contracts and are classified within Level 2 of the fair value hierarchy.