Property, net

3 Months Ended

Mar. 31, 2021

Property, net:

Property, net consists of the following:


	March 31, 2021		December 31, 2020
Land	$	1,496,749	$	1,538,270
Buildings and improvements	6,427,670		6,620,708
Tenant improvements	730,077		750,250
Equipment and furnishings(1)	191,664		194,231
Construction in progress	174,077		153,253
	9,020,237		9,256,712
Less accumulated depreciation(1)	(2,502,385)		(2,562,133)
	$	6,517,852	$	6,694,579

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at March 31, 2021 and December 31, 2020 (See Note 8—Leases).

Depreciation expense was $71,664 and $72,687 for the three months ended March 31, 2021 and 2020, respectively.

The gain (loss) on sale or write-down of assets, net for the three months ended March 31, 2021 and 2020 consist of the following:


	For the Three Months Ended March 31,
		2021		2020

Gain on property sales(1)		$	4,229	$	—
Write-down of assets(2)		(29,608)		(36,703)

Gain on land sales(3)		4,096		—
		$	(21,283)	$	(36,703)

(1) Related to Paradise Valley Mall (See Note 15-Dispositions).

(2) Includes impairment loss of $27,281 on Estrella Falls during the three months ended March 31, 2021 and impairment losses of $30,063 on Wilton Mall and $6,640 on Paradise Valley Mall during the three months ended March 31, 2020. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the three months ended March 31, 2021 mainly pertain to the write off of development costs.

(3) This includes $1,334 related to the sale of Paradise Valley Mall (See Note 15-Dispositions).

The following table summarizes certain of the Company's assets that were measured on a nonrecurring basis as a result of the impairment losses recorded for the three months ended March 31, 2021 and 2020, as described above:


	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets		Significant Other Unobservable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
March 31, 2020	$	140,000	$	—	$	140,000	$	—
March 31, 2021	$	18,970	$	—	$	—	$	18,970

The fair values relating to the 2020 impairments were based on sales contracts and are classified within Level 2 of the fair value hierarchy. The fair value (Level 3 measurement) related to the 2021 impairment was based upon an income approach, using an estimated terminal capitalization rate, discount rate, and in-place contractual rent and other income. The fair value is sensitive to these significant unobservable inputs.