Schedule III—Real Estate and Accumulated Depreciation

December 31, 2017

(In thousands)



			Initial Costs				Cost Capitalized Subsequent to Acquisition				Gross Carrying Amount
Property name	Encumbrances		Land		Building & Improvements		Improvements		Carrying Costs		Land		Building & Improvements		Total	Accumulated Depreciation⁽⁴⁾			Year Built / Renovated	Year Acquired
Office
875 Howard, San Francisco Bay Area, CA	$	—	$	18,058	$	41,046	$	17,544	$	1,936	$	18,058	$	60,526	78,584	$	(13,944	)	Various	2007
6040 Sunset (formerly Technicolor Building), Los Angeles, CA	—		6,599		27,187		25,032		3,088		6,599		55,307		61,906	(19,426		)	2008	2008
ICON, Los Angeles, CA	—		—		—		146,009		5,497		—		151,506		151,506	(5,494		)	2017	2008
CUE, Los Angeles, CA	—		—		—		35,837		1,326		—		37,163		37,163	—			Ongoing	2008
EPIC, Los Angeles, CA	—		—		—		23,783		852		—		24,635		24,635	—			Ongoing	2008
Del Amo, Los Angeles, CA	—		—		18,000		2,458		—		—		20,458		20,458	(4,767		)	1986	2010
1455 Market, San Francisco Bay Area, CA	—		41,226		34,990		55,661		—		41,226		90,651		131,877	(12,725		)	1976	2010
Rincon Center, San Francisco Bay Area, CA⁽¹⁾⁽²⁾	98,392		58,251		110,656		22,396		—		58,251		133,052		191,303	(24,373		)	1940/1989	2010
10950 Washington, Los Angeles, CA⁽²⁾	27,418		17,979		25,110		745		—		17,979		25,855		43,834	(4,978		)	1957/1974	2010
604 Arizona, Los Angeles, CA	—		5,620		14,745		1,332		423		5,620		16,500		22,120	(2,566		)	1950/2005	2011
275 Brannan, San Francisco Bay Area, CA	—		4,187		8,063		14,029		1,115		4,187		23,207		27,394	(6,253		)	1905	2011
625 Second, San Francisco Bay Area, CA	—		10,744		42,650		3,319		—		10,744		45,969		56,713	(8,564		)	1906/1999	2011
6922 Hollywood, Los Angeles, CA	—		16,608		72,392		8,302		—		16,608		80,694		97,302	(15,166		)	1967	2011
10900 Washington	—		1,400		1,200		738		—		1,400		1,938		3,338	(661		)	1973	2012
901 Market, San Francisco Bay Area, CA	—		17,882		79,305		13,606		—		17,882		92,911		110,793	(15,115		)	1912/1985	2012
Element LA, Los Angeles, CA⁽²⁾	168,000		79,769		19,755		85,349		10,391		79,769		115,495		195,264	(10,203		)	1949	2012, 2013
3401 Exposition, Los Angeles, CA	—		14,120		11,319		11,046		1,028		14,120		23,393		37,513	(2,844		)	1961	2013
505 First, Greater Seattle, WA	—		22,917		133,034		3,905				22,917		136,939		159,856	(17,885		)	Various	2013
83 King, Greater Seattle, WA	—		12,982		51,403		5,300				12,982		56,703		69,685	(8,345		)	Various	2013
Met Park North, Greater Seattle, WA⁽²⁾	64,500		28,996		71,768		608		—		28,996		72,376		101,372	(10,016		)	2000	2013
Northview Center, Greater Seattle, WA	—		4,803		41,191		918		—		4,803		42,109		46,912	(6,020		)	1991	2013
Merrill Place, Greater Seattle, WA	—		27,684		29,824		16,287		784		27,684		46,895		74,579	(5,251		)	Various	2014
450 Alaskan, Greater Seattle, WA	—		—		—		73,226		2,542		—		75,768		75,768	(201		)	Ongoing	2014
Palo Alto Square, San Francisco Bay Area, CA	—		—		326,033		17,448		—		—		343,481		343,481	(31,719		)	1971	2015
3400 Hillview, San Francisco Bay Area, CA	—		—		159,641		2,453		—		—		162,094		162,094	(20,037		)	1991	2015



		Initial Costs		Cost Capitalized Subsequent to Acquisition			Gross Carrying Amount
Property name	Encumbrances	Land	Building & Improvements	Improvements		Carrying Costs	Land	Building & Improvements	Total	Accumulated Depreciation⁽⁴⁾		Year Built / Renovated	Year Acquired
Foothill Research Center, San Francisco Bay Area, CA	—	—	133,994	3,011		—	—	137,005	137,005	(19,269	)	1991	2015
Page Mill Center, San Francisco Bay Area, CA	—	—	147,625	6,748		—	—	154,373	154,373	(19,348	)	1970/2016	2015
Clocktower Square, San Francisco Bay Area, CA	—	—	93,949	539		—	—	94,488	94,488	(7,875	)	1983	2015
3176 Porter (formerly Lockheed), San Francisco Bay Area, CA	—	—	34,561	(292	)	—	—	34,269	34,269	(3,732	)	1991	2015
Towers at Shore Center, San Francisco Bay Area, CA	—	72,673	144,188	7,924		—	72,673	152,112	224,785	(13,102	)	2001	2015
Skyway Landing, San Francisco Bay Area, CA	—	37,959	63,559	2,812		—	37,959	66,371	104,330	(6,923	)	2001	2015
Shorebreeze, San Francisco Bay Area, CA	—	69,448	59,806	7,556		—	69,448	67,362	136,810	(5,805	)	1985/1989	2015
555 Twin Dolphin, San Francisco Bay Area, CA	—	40,614	73,457	5,409		—	40,614	78,866	119,480	(7,074	)	1989	2015
333 Twin Dolphin, San Francisco Bay Area, CA	—	36,441	64,892	8,275		—	36,441	73,167	109,608	(7,136	)	1985	2015
Peninsula Office Park, San Francisco Bay Area, CA	—	98,206	93,780	12,094		—	98,206	105,874	204,080	(12,121	)	Various	2015
Metro Center, San Francisco Bay Area, CA	—	—	313,683	39,566		—	—	353,249	353,249	(31,341	)	Various	2015
Concourse, San Francisco Bay Area, CA	—	45,085	224,271	9,585		—	45,085	233,856	278,941	(23,035	)	Various	2015
Gateway, San Francisco Bay Area, CA	—	33,117	121,217	26,159		—	33,117	147,376	180,493	(14,718	)	Various	2015
Metro Plaza, San Francisco Bay Area, CA	—	16,038	106,156	9,929		—	16,038	116,085	132,123	(10,924	)	1986	2015
1740 Technology, San Francisco Bay Area, CA	—	8,052	49,486	3,555		—	8,052	53,041	61,093	(7,032	)	1985	2015
Skyport Plaza, San Francisco Bay Area, CA	—	29,033	153,844	(6,501	)	—	29,033	147,343	176,376	(10,401	)	2000/2001	2015
Techmart, San Francisco Bay Area, CA	—	—	66,660	10,598		—	—	77,258	77,258	(8,244	)	1986	2015
Campus Center, San Francisco Bay Area, CA	—	59,460	79,604	7,834		—	59,460	87,438	146,898	(15,374	)	N/A	2015
Fourth & Traction, Los Angeles, CA	—	12,140	37,110	38,529		6,139	12,140	81,778	93,918	—		Various	2015
MaxWell, Los Angeles, CA	—	13,040	26,960	17,795		3,729	13,040	48,484	61,524	—		Various	2015
11601 Wilshire, Los Angeles, CA	—	28,978	321,273	17,641		—	28,978	338,914	367,892	(15,876	)	1983	2016, 2017
Hill7, Greater Seattle, WA⁽²⁾	101,000	36,888	137,079	13,394		—	36,888	150,473	187,361	(5,466	)	2015	2016
Page Mill Hill, San Francisco Bay Area, CA	—	—	131,402	1,958		—	—	133,360	133,360	(5,046	)	1975	2016
Media & Entertainment									—



			Initial Costs				Cost Capitalized Subsequent to Acquisition				Gross Carrying Amount
Property name	Encumbrances		Land		Building & Improvements		Improvements		Carrying Costs		Land		Building & Improvements		Total		Accumulated Depreciation⁽⁴⁾			Year Built / Renovated	Year Acquired
Sunset Gower Studios, Los Angeles, CA⁽³⁾	5,001		79,320		64,697		31,416		207		79,320		96,320		175,640		(23,644		)	Various	2007, 2011, 2012
Sunset Bronson Studios, Los Angeles, CA⁽³⁾	—		77,698		32,374		31,543		422		77,698		64,339		142,037		(11,485		)	Various	2008
Sunset Las Palmas Studios, Los Angeles, CA			118,892		86,922		4,773		13		118,892		91,708		210,600		(1,974		)	Various	2017
Total before held for sale reclass	464,311		1,302,907		4,181,861		899,181		39,492		1,302,907		5,120,534		6,423,441		(533,498		)
Real estate held for sale:
9300 Wilshire, Los Angeles, CA	—		—		10,718		2,024		—		—		12,742		12,742		(4,195		)	1964/2002	2010
Embarcadero Place, San Francisco Bay Area, CA	—		41,050		77,006		3,273		—		41,050		80,279		121,329		(7,155		)	1984	2015
2180 Sand Hill, San Francisco Bay Area, CA	—		13,663		50,559		385		—		13,663		50,944		64,607		(3,749		)	1973	2015
2600 Campus Drive (building 6 of Peninsula Office Park), San Francisco Bay Area, CA	—		11,700		10,400		30		—		11,700		10,430		22,130		(814		)	Various	2015
Total	$	464,311	$	1,369,320	$	4,330,544	$	904,893	$	39,492	$	1,369,320	$	5,274,929	$	6,644,249	$	(549,411	)

_____________


(1)	The loan was paid in full on February 1, 2018.


(2)	These properties are encumbered under our unsecured revolving credit facility, which, as of December 31, 2017, had an outstanding balance of $100.0 million.


(3)	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, net.”


(4)	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 $6.2 billion, unaudited as of December 31, 2017.

The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2015 to December 31, 2017:



	Year Ended December 31,
	2017			2016			2015
Total investment in real estate, beginning of year	$	6,507,484		$	5,976,526		$	2,239,741
Additions during period:
Acquisitions	255,848			597,751			3,699,289
Improvements, capitalized costs	330,809			296,399			198,561
Total additions during period	586,657			894,150			3,897,850
Deductions during period
Disposal (fully depreciated assets and early terminations)	(41,337		)	(27,451		)	(13,556		)
Cost of property sold	(408,555		)	(335,741		)	(147,509		)
Total deductions during period	(449,892		)	(363,192		)	(161,065		)

Ending balance, before reclassification to assets associated with real estate held for sale	6,644,249			6,507,484			5,976,526
Reclassification to assets associated with real estate held for sale	(220,808		)	(629,004		)	(353,067		)
Total investment in real estate, end of year	$	6,423,441		$	5,878,480		$	5,623,459

Total accumulated depreciation, beginning of year	$	(423,950	)	$	(272,724	)	$	(142,561	)
Additions during period:
Depreciation of real estate	(206,838		)	(182,219		)	(151,066		)
Total additions during period	(206,838		)	(182,219		)	(151,066		)
Deductions during period:
Deletions	37,925			25,622			12,999
Write-offs due to sale	43,452			5,371			7,904
Total deductions during period	81,377			30,993			20,903

Ending balance, before reclassification to assets associated with real estate held for sale	(549,411		)	(423,950		)	(272,724		)
Reclassification to assets associated with real estate held for sale	15,913			48,743			8,865
Total accumulated depreciation, end of year	$	(533,498	)	$	(375,207	)	$	(263,859	)