Property, net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property, net:

Property, net at December 31, 2022 and 2021 consists of the following:


	2022		2021
Land	$	1,425,211	$	1,441,858
Buildings and improvements	6,378,736		6,306,764
Tenant improvements	711,007		685,242
Equipment and furnishings(1)	186,767		191,266
Construction in progress	218,859		222,420
	8,920,580		8,847,550
Less accumulated depreciation(1)	(2,792,790)		(2,563,344)
	$	6,127,790	$	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 December 31, 2022 and 2021 (See Note 8—Leases).

Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $271,494, $282,158 and $287,925, respectively.

The gain (loss) on sale or write down of assets, net for the years ended December 31, 2022, 2021 and 2020 consist of the following:


	2022		2021		2020
Property sales(1)	$	386	$	113,657	$	—
Write-down of assets(2)	(15,045)		(67,344)		(76,705)
Land sales	22,357		29,427		8,593

	$	7,698	$	75,740	$	(68,112)

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(1)Includes gains related to the sale of La Encantada and Paradise Valley Mall (See Note 16-Dispositions).

(2)Includes impairment loss of $5,471 relating to the Company's investment in MS Portfolio LLC (See Note 4—Investments in Unconsolidated Joint Ventures) and impairment loss of $5,140 on Towne Mall during the year ended December 31, 2022. Includes a loss of $28,276 in 2021 in connection with the assignment of the Company's partnership interest in The Shops at North Bridge (See Note 4—Investments in Unconsolidated Joint Ventures) and impairment loss of $27,281 on Estrella Falls during the year ended December 31, 2021 and impairment losses of $30,063 on Wilton Mall and $6,640 on Paradise Valley Mall during the year ended December 31, 2020. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the years ended December 31, 2022, 2021 and 2020 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 impairment charges recorded for the years ended December 31, 2022, 2021 and 2020 as described above:


Years ended December 31,	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
2022	$	18,250	$	—	$	—	$	18,250
2021	$	4,720	$	—	$	4,720	$	—
2020	$	151,875	$	—	$	151,875	$	—

The fair value relating to the 2020 and 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 2022 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.