PROPERTY

Property

September 30, 2017

and

December 31, 2016

consisted of the following:

	September 30, 2017		December 31, 2016
	(in thousands)
Land	$	5,059	$	5,059
Land improvements		24,732		18,051
Buildings		24,884		24,884
Machinery and equipment		10,965		10,965
Total property		65,640		58,959
Less accumulated depreciation		34,511		33,215
Net property	$	31,129	$	25,744

Land

Most of the Company

’s

23,000

acres of land were acquired between

1911

and

1932

and is carried in its balance sheets at cost. Approximately

21,000

acres of land are located in West Maui and comprise a largely contiguous parcel that extends from the shoreline to an elevation of approximately

5,700

feet. This parcel includes approximately

900

acres within the Kapalua Resort, a master-planned, destination resort and residential community located in West Maui encompassing approximately

3,000

acres. The Company’s remaining

2,000

acres of land are located in Upcountry Maui in an area commonly known as Haliimaile and are mainly comprised of leased agricultural fields, including related processing and maintenance facilities.

Land Improvements

Land improvements are comprised primarily of roads, utilities, and landscaping infrastructure improvements at the Kapalua Resort. Also included is the Company

’s potable and non-potable water systems in West Maui. The majority of the Company’s land improvements were constructed and placed in service in the mid-to-late

1970’s

or conveyed in

2017.

Depreciation expense would be considerably higher if these assets were stated at current replacement cost.

Buildings

Buildings are comprised of restaurant, retail and light industrial spaces located at the Kapalua Resort and Haliimaile which are used in the Company

’s leasing operations. The majority of the buildings were constructed and placed in service in the mid-to-late

1970’s.

Depreciation expense would be considerably higher if these assets were stated at current replacement cost.

Machinery and Equipment

Machinery and equipment are mainly comprised of zipline course equipment installed in

2008

at the Kapalua Resort and used in the Company

’s leasing operations. Also included are machinery and equipment used in the Company’s utilities operations.