Schedule III - Real Estate and Accumulated Depreciation

December 31, 2016

(In thousands)



				Initial Costs				Cost Capitalized Subsequent to Acquisition					Gross Carrying Amount
Property name	Location	Encumbrances		Land		Building & Improvements		Improvements			Carrying Costs		Land		Building & Improvements		Total	Accumulated Depreciation⁽³⁾			Year Built / Renovated	Year Acquired
Office
875 Howard Street Property⁽¹⁾	San Francisco Bay Area, CA	$	—	$	18,058	$	41,046	$	11,230		$	1,736	$	18,058	$	54,012	72,070	$	(14,594	)	Various	2007
Technicolor Building⁽¹⁾	Los Angeles, CA	—		6,599		27,187		25,032			3,088		6,599		55,307		61,906	(17,158		)	2008	2008
Icon & CUE	Los Angeles, CA	—		—		—		137,937			5,320		—		143,257		143,257	—			Ongoing	2008
Del Amo Office	Los Angeles, CA	—		—		18,000		2,371			—		—		20,371		20,371	(4,020		)	1986	2010
9300 Wilshire	Los Angeles, CA	—		—		10,718		1,293			—		—		12,011		12,011	(3,553		)	1964/2002	2010
1455 Market Street⁽¹⁾	San Francisco Bay Area, CA	—		41,226		34,990		52,242			—		41,226		87,232		128,458	(9,112		)	1976	2010
Rincon Center	San Francisco Bay Area, CA	100,409		58,251		110,656		18,871			—		58,251		129,527		187,778	(23,533		)	1940/1989	2010
10950 Washington	Los Angeles, CA	27,929		17,979		25,110		608			—		17,979		25,718		43,697	(4,688		)	1957/1974	2010
604 Arizona⁽¹⁾	Los Angeles, CA	—		5,620		14,745		1,522			—		5,620		16,267		21,887	(2,440		)	1950/2005	2011
275 Brannan Street⁽¹⁾	San Francisco Bay Area, CA	—		4,187		8,063		14,029			1,115		4,187		23,207		27,394	(4,772		)	1905	2011
625 Second Street⁽¹⁾	San Francisco Bay Area, CA	—		10,744		42,650		3,159			—		10,744		45,809		56,553	(7,207		)	1906/1999	2011
6922 Hollywood⁽¹⁾	Los Angeles, CA	—		16,608		72,392		5,573			—		16,608		77,965		94,573	(12,391		)	1967	2011
10900 Washington⁽¹⁾	Los Angeles, CA	—		1,400		1,200		738			—		1,400		1,938		3,338	(510		)	1973	2012
901 Market Street⁽¹⁾	San Francisco Bay Area, CA	—		17,882		79,305		16,285			—		17,882		95,590		113,472	(13,465		)	1912/1985	2012
Element LA	Los Angeles, CA	168,000		79,769		19,755		85,152			10,391		79,769		115,298		195,067	(6,458		)	1949	2012, 2013
Pinnacle I	Los Angeles, CA	129,000		28,518		171,657		10,157			—		28,518		181,814		210,332	(20,168		)	2002	2012
3401 Exposition⁽¹⁾	Los Angeles, CA	—		14,120		11,319		11,409			1,028		14,120		23,756		37,876	(1,920		)	1961	2013
Pinnacle II	Los Angeles, CA	87,000		15,430		115,537		334			—		15,430		115,871		131,301	(12,019		)	2005	2013
First & King⁽¹⁾	Greater Seattle, WA	—		35,899		184,437		7,349			—		35,899		191,786		227,685	(19,865		)	Various	2013
Met Park North	Greater Seattle, WA	64,500		28,996		71,768		573			—		28,996		72,341		101,337	(7,678		)	2000	2013
Northview Center⁽¹⁾	Greater Seattle, WA	—		4,803		41,191		(60		)	—		4,803		41,131		45,934	(4,516		)	1991	2013
Merrill Place⁽¹⁾	Greater Seattle, WA	—		27,684		29,824		8,373			379		27,684		38,576		66,260	(3,650		)	Various	2014
450 Alaskan Way	Greater Seattle, WA	—		—		—		30,725			453		—		31,178		31,178	—			Ongoing	2014
3402 Pico (Existing)⁽¹⁾	Los Angeles, CA	—		16,410		2,136		8,571			2,257		16,410		12,964		29,374	—			1950	2014
Palo Alto Square⁽¹⁾	San Francisco Bay Area, CA	—		—		326,033		6,068			—		—		332,101		332,101	(21,302		)	1971	2015



			Initial Costs		Cost Capitalized Subsequent to Acquisition			Gross Carrying Amount
Property name	Location	Encumbrances	Land	Building & Improvements	Improvements		Carrying Costs	Land	Building & Improvements	Total	Accumulated Depreciation⁽³⁾		Year Built / Renovated	Year Acquired
3400 Hillview⁽¹⁾	San Francisco Bay Area, CA	—	—	159,641	2,425		—	—	162,066	162,066	(12,711	)	1991	2015
Embarcadero Place⁽¹⁾	San Francisco Bay Area, CA	—	41,050	77,006	3,833		—	41,050	80,839	121,889	(5,095	)	1984	2015
Foothill Research Center⁽¹⁾	San Francisco Bay Area, CA	—	—	133,994	2,803		—	—	136,797	136,797	(12,193	)	1991	2015
Page Mill Center⁽¹⁾	San Francisco Bay Area, CA	—	—	147,625	5,245		—	—	152,870	152,870	(11,884	)	1970/2016	2015
Clocktower Square⁽¹⁾	San Francisco Bay Area, CA	—	—	93,949	267		—	—	94,216	94,216	(5,282	)	1983	2015
Lockheed⁽¹⁾	San Francisco Bay Area, CA	—	—	34,561	(668	)	—	—	33,893	33,893	(2,372	)	1991	2015
2180 Sand Hill Road⁽¹⁾	San Francisco Bay Area, CA	—	13,663	50,559	586		—	13,663	51,145	64,808	(2,812	)	1973	2015
Towers at Shore Center⁽¹⁾	San Francisco Bay Area, CA	—	72,673	144,188	6,620		—	72,673	150,808	223,481	(8,265	)	2001	2015
Skyway Landing⁽¹⁾	San Francisco Bay Area, CA	—	37,959	63,559	1,076		—	37,959	64,635	102,594	(4,498	)	2001	2015
Shorebreeze⁽¹⁾	San Francisco Bay Area, CA	—	69,448	59,806	3,249		—	69,448	63,055	132,503	(3,533	)	1985/1989	2015
555 Twin Dolphin⁽¹⁾	San Francisco Bay Area, CA	—	40,614	73,457	1,933		—	40,614	75,390	116,004	(4,392	)	1989	2015
333 Twin Dolphin⁽¹⁾	San Francisco Bay Area, CA	—	36,441	64,892	6,029		—	36,441	70,921	107,362	(4,201	)	1985	2015
Peninsula Office Park⁽¹⁾	San Francisco Bay Area, CA	—	109,906	104,180	5,787		—	109,906	109,967	219,873	(8,071	)	Various	2015
Metro Center⁽¹⁾	San Francisco Bay Area, CA	—	—	313,683	19,416		—	—	333,099	333,099	(19,182	)	Various	2015
Concourse⁽¹⁾	San Francisco Bay Area, CA	—	45,085	224,271	3,983		—	45,085	228,254	273,339	(15,496	)	Various	2015
Gateway⁽¹⁾	San Francisco Bay Area, CA	—	33,117	121,217	15,914		—	33,117	137,131	170,248	(11,496	)	Various	2015
Metro Plaza⁽¹⁾	San Francisco Bay Area, CA	—	16,038	106,156	5,610		—	16,038	111,766	127,804	(7,207	)	1986	2015
1740 Technology⁽¹⁾	San Francisco Bay Area, CA	—	8,052	49,486	2,235		—	8,052	51,721	59,773	(4,220	)	1985	2015
Skyport Plaza⁽¹⁾	San Francisco Bay Area, CA	—	29,033	153,844	890		—	29,033	154,734	183,767	(12,751	)	2000/2001	2015
Techmart Commerce Center⁽¹⁾	San Francisco Bay Area, CA	—	—	66,660	6,505		—	—	73,165	73,165	(5,228	)	1986	2015
Campus Center⁽¹⁾	San Francisco Bay Area, CA	—	59,460	79,604	444		—	59,460	80,048	139,508	(7,249	)	N/A	2015
4th & Traction⁽¹⁾	Los Angeles, CA	—	12,140	37,110	25,100		3,077	12,140	65,287	77,427	—		Various	2015
405 Mateo⁽¹⁾	Los Angeles, CA	—	13,040	26,960	3,127		1,949	13,040	32,036	45,076	—		Various	2015



				Initial Costs				Cost Capitalized Subsequent to Acquisition				Gross Carrying Amount
Property name	Location	Encumbrances		Land		Building & Improvements		Improvements		Carrying Costs		Land		Building & Improvements		Total		Accumulated Depreciation⁽³⁾			Year Built / Renovated	Year Acquired
11601 Wilshire⁽¹⁾	Los Angeles, CA	—		—		292,382		2,755		—		—		295,137		295,137		(5,271		)	1983	2016
Hill7	Greater Seattle, WA	101,000		36,888		137,079		60		—		36,888		137,139		174,027		(971		)	2015	2016
Page Mill Hill⁽¹⁾	San Francisco Bay Area, CA	—		—		131,402		438		—		—		131,840		131,840		(188		)	1975	2016
Media & Entertainment
Sunset Gower Studios⁽²⁾	Los Angeles, CA	5,001		79,320		64,697		26,805		139		79,320		91,641		170,961		(20,387		)	Various	2007, 2011, 2012
Sunset Bronson Studios⁽²⁾	Los Angeles, CA	—		77,698		32,374		41,070		422		77,698		73,866		151,564		(9,394		)	Various	2008
Total		$	682,839	$	1,281,808	$	4,504,061	$	653,078	$	31,354	$	1,281,808	$	5,188,493	$	6,470,301	$	(419,368	)
Real estate held for sale:
222 Kearny Street⁽¹⁾	San Francisco Bay Area, CA	—		7,563		23,793		5,827		—		7,563		29,620		37,183		(4,582		)	1901/1986	2010
		$	682,839	$	1,289,371	$	4,527,854	$	658,905	$	31,354	$	1,289,371	$	5,218,113	$	6,507,484	$	(423,950	)

_____________


(1)	These properties are encumbered under our line of credit, which, as of December 31, 2016, has an outstanding balance of $300.0 million.


(2)	The encumbrance amount relates to both Sunset Gower Studios and Sunset Bronson Studios. See description of notes payable in Part IV, Item 15(a) “Financial Statement and Schedules-Note 5 to the Consolidated Financial Statements-Notes Payable.”


(3)	The Company computes depreciation using the straight-line method over the estimated useful lives over the shorter of the ground lease term or 39 years for building and improvements, 15 years for land improvements, and over the shorter of asset life or life of the lease for tenant improvements.

The aggregate gross cost of property included above for federal income tax purposes approximated $6.0 billion, unaudited as of December 31, 2016.

The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2014 to December 31, 2016:



	Year Ended December 31,
	2016			2015			2014
Total investment in real estate, beginning of year	$	5,976,526		$	2,239,741		$	2,035,330
Additions during period:
Acquisitions	597,751			3,699,289			114,008
Improvements, capitalized costs	296,399			198,561			128,018
Total additions during period	894,150			3,897,850			242,026
Deductions during period
Disposal (fully depreciated assets and early terminations)	(27,451		)	(13,556		)	(23,977		)
Cost of property sold	(335,741		)	(147,509		)	(13,638		)
Total deductions during period	(363,192		)	(161,065		)	(37,615		)

Ending balance, before reclassification to assets associated with real estate held for sale	6,507,484			5,976,526			2,239,741
Reclassification to assets associated with real estate held for sale	(37,183		)	(353,067		)	(68,446		)
Total investment in real estate, end of year	$	6,470,301		$	5,623,459		$	2,171,295

Total accumulated depreciation, beginning of year	$	(272,724	)	$	(142,561	)	$	(116,342	)
Additions during period:
Depreciation of real estate	(182,219		)	(151,066		)	(50,044		)
Total additions during period	(182,219		)	(151,066		)	(50,044		)
Deductions during period:
Deletions	25,622			12,999			22,310
Write-offs due to sale	5,371			7,904			1,515
Total deductions during period	30,993			20,903			23,825

Ending balance, before reclassification to assets associated with real estate held for sale	(423,950		)	(272,724		)	(142,561		)
Reclassification to assets associated with real estate held for sale	4,582			8,865			7,904
Total accumulated depreciation, end of year	$	(419,368	)	$	(263,859	)	$	(134,657	)