Property And Equipment

3 Months Ended

Mar. 31, 2014

Note 6 – Property and Equipment

Operating Property, net

As of March 31, 2014 and December 31, 2013, property associated with our operating activities summarized as follows (dollars in thousands):



Operating Property		March 31, 2014		December 31, 2013
Land	$	67,039	$	65,578
Building and improvements		127,899		123,061
Leasehold interests		47,603		46,330
Fixtures and equipment		109,546		106,099
Total cost		352,087		341,068
Less: accumulated depreciation		(157,597)		(149,408)
Operating property, net	$	194,490	$	191,660

Depreciation expense for operating property was $3.5 million for the three months ended March 31, 2014, and $3.1 million for the three months ended March 31, 2013.

Land Held for Sale

On October 15, 2013, we entered into a definitive purchase and sale agreement to sell our Moonee Ponds property for a sale price of AUS$23.0 million payable in full upon closing of that transaction on April 16, 2015. The property has a book value of $11.5 million (AUS $12.4 million) and while the transaction was treated as a sale for tax purposes, it does not qualify as a sale under US GAAP until the close of the transaction on April 16, 2015.

Investment and Development Property, net

As of March 31, 2014 and December 31, 2013, our investment and development property is summarized as follows (dollars in thousands):



Investment and Development Property		March 31, 2014		December 31, 2013
Land	$	60,231	$	59,550
Construction-in-progress (including capitalized interest)		17,078		14,680
Investment and development property	$	77,309	$	74,230

At the beginning of 2010, we curtailed our development activities with respect to our non-operating properties and are not currently capitalizing interest expense. As a result, we did not capitalize any interest during the three months ended March 31, 2014 or 2013. We are currently pursuing the redevelopment of our Union Square and Cinemas 1,2,3 properties. Our non-operating development properties include 50.6 acre Burwood property, our 64 acre Manukau property and our 202 acre Coachella property.