Property, net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property, net:

Property, net consists of the following:


	June 30, 2024		December 31, 2023
Land	$	1,412,634	$	1,388,345
Buildings and improvements	6,062,557		6,070,367
Tenant improvements	653,945		724,427
Equipment and furnishings(1)	169,540		186,717
Construction in progress	408,207		340,496
	8,706,883		8,710,352
Less accumulated depreciation(1)	(2,567,994)		(2,809,863)
	$	6,138,889	$	5,900,489

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at June 30, 2024 and December 31, 2023 (See Note 8—Leases).

Depreciation expense was $67,421 and $66,162 for the three months ended June 30, 2024 and 2023, respectively, and $132,180 and $133,225 for the six months ended June 30, 2024 and 2023, respectively.

Gain on sale or write-down of assets, net for the three and six months ended June 30, 2024 and 2023 consist of the following:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023

Gain on property sales, net(1)	$	337,405	$	10,349	$	337,405	$	10,349
Loss on write-down of assets(2)	(12,698)		(70)		(48,783)		(666)

Gain on land sales, net(3)	289		—		289		4,375
	$	324,996	$	10,279	$	288,911	$	14,058

(1) This includes a gain of $334,285 for the three and six months ended June 30, 2024, as a result of the Company no longer recognizing its investment in Chandler Fashion Center as a financing arrangement. Effective June 13, 2024, the Company accounts for its investment under the equity method of accounting (See Note 12—Financing Arrangement and Note 16—Dispositions). For the three and six months ended June 30, 2023, the $10,349 of gain is from the sale of Marketplace at Flagstaff (See Note 16—Dispositions).

(2) This includes impairment losses of $12,692 and $48,679 for the three and six months ended June 30, 2024, respectively, due to the reduction of the estimated holding periods of certain properties. The remaining amounts for the three and six months ended June 30, 2024 and 2023 mainly pertain to the write off of development costs.

(3) See Note 16—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 three and six months ended June 30, 2024 and 2023, 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, 2024	$	314,010	$	—	$	—	$	314,010

The fair value (Level 3 measurement) related to the 2024 impairments are based upon an income approach, using an estimated terminal capitalization rate in the range of 7.3% to 9.0%, a discount rate in the range of 9.0% to 11.0% and market rents per square foot of $20 to $200. The fair value is sensitive to these significant unobservable inputs.