Investment in Real Estate

9 Months Ended

Sep. 30, 2023

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


	September 30, 2023		December 31, 2022
Land	$	1,377,970	$	1,397,714
Building and improvements	6,370,018		6,342,851
Tenant improvements	894,595		868,193
Furniture and fixtures	9,441		9,639
Property under development	179,890		98,175
INVESTMENT IN REAL ESTATE, AT COST	$	8,831,914	$	8,716,572

Acquisitions of Real Estate

The Company had no acquisitions of real estate during the three and nine months ended September 30, 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 and nine months ended September 30, 2023.

During the three and nine months ended September 30, 2022, the Company recorded $0.2 million and $13.0 million, respectively, of impairment charges related to the tangible assets of its Del Amo office property due to a reduction in the estimated fair value of the property. The property was sold in August 2022. The estimated fair value of $2.8 million was based on the estimated sales price of the property, which is classified within Level 2 of the fair value hierarchy.

During three and nine months ended September 30, 2022, the Company recorded $1.5 million of impairment charges related to the tangible assets of its Northview Center office property due to a reduction in the estimated fair value of the property. The property was sold in August 2022. The estimated fair value of $46.0 million was based on the sales price of the property, which is classified within Level 2 of the fair value hierarchy.

During three and nine months ended September 30, 2022, the Company recorded $3.1 million of impairment charges related to the tangible assets of its 6922 Hollywood office property due to a reduction in the estimated fair value of the property. The property was classified as held for sale as of September 30, 2022 and was subsequently sold in October 2022. The estimated fair value of $96.0 million was based on the 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 nine months ended September 30, 2023. These properties were considered non-strategic to the Company’s portfolio:


Property	Segment	Date of Disposition	Square Feet (unaudited)	Sales Price(1) (in millions)		Gain on Sale(2) (in millions)
Skyway Landing	Office	2/6/2023	246,997	$	102.0	$	7.0
604 Arizona	Office	8/24/2023	44,260	$	32.5	$	10.3
3401 Exposition	Office	8/25/2023	63,376	$	40.0	$	5.8

_____________

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

2.Included within gain (loss) on sale of real estate on the Consolidated Statement of Operations.

The following table summarizes information on dispositions completed during the nine months ended September 30, 2022. These properties were considered non-strategic to the Company’s portfolio:


Property	Segment	Date of Disposition	Square Feet	Sales Price(1) (in millions)		Gain (Loss) on Sale (in millions)
Del Amo	Office	8/5/2022	113,000	$	2.8	$	—
Northview Center	Office	8/30/2022	179,985	$	46.0	$	(0.2)

_____________

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