Property, net

9 Months Ended

Sep. 30, 2021

Property, net consists of the following:


	September 30, 2021		December 31, 2020
Land	$	1,440,383	$	1,538,270
Buildings and improvements	6,312,458		6,620,708
Tenant improvements	680,047		750,250
Equipment and furnishings(1)	188,960		194,231
Construction in progress	226,246		153,253
	8,848,094		9,256,712
Less accumulated depreciation(1)	(2,517,703)		(2,562,133)
	$	6,330,391	$	6,694,579

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at September 30, 2021 and December 31, 2020 (See Note 8—Leases).

Depreciation expense was $68,715 and $71,250 for the three months ended September 30, 2021 and 2020, respectively, and $211,139 and $216,455 for the nine months ended September 30, 2021 and 2020, respectively.

Gain (loss) on sale or write-down of assets, net for the three and nine months ended September 30, 2021 and 2020 consist of the following:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020

Gain on property sales, net(1)	$	118,471	$	856	$	111,805	$	856
Loss on write-down of assets(2)	—		(2,361)		(38,362)		(42,971)

Gain on land sales, net(3)	95		13,291		19,913		13,331
	$	118,566	$	11,786	$	93,356	$	(28,784)

(1) Includes $117,242 and $4,229 of gain related to the sale of La Encantada and Paradise Valley Mall, respectively (See Note 15-Dispositions).

(2) Includes impairment loss of $27,281 on Estrella Falls during the nine months ended September 30, 2021 and impairment losses of $30,063 on Wilton Mall and $6,640 on Paradise Valley Mall during the nine months ended September 30, 2020. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the nine months ended September 30, 2021 mainly pertain to the write off of development costs.

(3) Includes $1,334 related to the sale of Paradise Valley Mall (See Note 15-Dispositions).

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, 2021 and 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	$	—
September 30, 2021	$	4,720	$	—	$	4,720	$	—

The fair values relating to the 2020 impairments and a portion of the 2021 impairments were based on sales contracts and are classified within Level 2 of the fair value hierarchy.