Property, net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property, net:

Property, net consists of the following:


	June 30, 2022		December 31, 2021
Land	$	1,432,149	$	1,441,858
Buildings and improvements	6,343,434		6,306,764
Tenant improvements	688,929		685,242
Equipment and furnishings(1)	189,909		191,266
Construction in progress	199,348		222,420
	8,853,769		8,847,550
Less accumulated depreciation(1)	(2,678,084)		(2,563,344)
	$	6,175,685	$	6,284,206

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at June 30, 2022 and December 31, 2021 (See Note 8—Leases).

Depreciation expense was $67,394 and $70,762 for the three months ended June 30, 2022 and 2021, respectively, and $135,179 and $142,426 for the six months ended June 30, 2022 and 2021, respectively.

(Loss) gain on sale or write-down of assets, net for the three and six months ended June 30, 2022 and 2021 consist of the following:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021

Gain (loss) on property sales, net(1)	$	73	$	(10,895)	$	73	$	(6,666)
Loss on write-down of assets(2)	(1,230)		(8,754)		(9,858)		(38,362)

Gain on land sales, net	66		15,722		15,147		19,818
	$	(1,091)	$	(3,927)	$	5,362	$	(25,210)

(1) Includes $4,229 of gain related to the sale of Paradise Valley Mall during the six months ended June 30, 2021 (See Note 15-Dispositions).

(2) Includes impairment loss of $5,492 relating to the Company's investment in MS Portfolio LLC (See Note 4-Investments in Unconsolidated Joint Ventures) during the six months ended June 30, 2022 and impairment loss of $27,281 on Estrella Falls during the six months ended June 30, 2021. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the three and six months ended June 30, 2022 and 2021 mainly pertain to the write off of development costs.

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 six months ended June 30, 2021, 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)

June 30, 2021	$	23,690	$	—	$	4,720	$	18,970

The fair values relating to a portion of the 2021 impairments were based on sales contracts and are classified within Level 2 of the fair value hierarchy. The fair value (Level 3 measurement) related to the 2021 impairment was based upon an income approach, using an estimated terminal capitalization rate, discount rate, and in-place contractual rent and other income. The fair value is sensitive to these significant unobservable inputs.