Investment in Real Estate

3 Months Ended

Mar. 31, 2023

The following table summarizes the Company’s investment in real estate, at cost as of:


	March 31, 2023		December 31, 2022
Land	$	1,397,711	$	1,397,714
Building and improvements	6,361,773		6,342,851
Tenant improvements	894,939		868,193
Furniture and fixtures	9,730		9,639
Property under development	126,182		98,175
INVESTMENT IN REAL ESTATE, AT COST	$	8,790,335	$	8,716,572

Acquisitions of Real Estate

The Company had no acquisitions of real estate during the three months ended March 31, 2023.

Impairment of Long-Lived Assets

The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP.

Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value, based on Level 1 or Level 2 inputs.

The Company had no impairments of real estate during the three months ended March 31, 2023. During the three months ended March 31, 2022, the Company recorded $12.0 million of impairment charges related to its Del Amo office property, which was classified as held for sale as of March 31, 2022, due to a reduction in the estimated fair value of the property. The estimated fair value of $6.0 million was based on the estimated sales price of the property, which is classified within Level 2 of the fair value hierarchy.

Dispositions of Real Estate

The following table summarizes information on dispositions completed during the three months ended March 31, 2023. This property was considered non-strategic to the Company’s portfolio:

Property

Segment

Date of Disposition

Square Feet (unaudited)

Sales Price(1) (in millions)

Skyway Landing

Office

2/6/2023

246,997

102.0

_____________

1.Represents gross sales price before certain credits, prorations and closing costs.

The disposition of this property resulted in a gain of $7.0 million during the three months ended March 31, 2023 recorded within gain on sale of real estate on the Consolidated Statement of Operations.