Property associated with our operating activities as at March 31, 2024 and December 31, 2023, is summarized as follows:



	March 31,		December 31,
(Dollars in thousands)	2024		2023
Land	$	59,696	$	61,095
Building and improvements		201,096		205,821
Leasehold improvements		50,320		53,984
Fixtures and equipment		148,276		155,156
Construction-in-progress		4,335		4,290
Total cost		463,723		480,346
Less: accumulated depreciation		(209,914)		(217,929)
Operating property, net	$	253,809	$	262,417

Depreciation expense for operating property was $4.1 million for the three months ended March 31, 2024, and $4.6 million for three months ended March 31, 2023.

Our investment and development property as of March 31, 2024 and December 31, 2023, is summarized below:



	March 31,		December 31,
(Dollars in thousands)	2024		2023
Land	$	3,642	$	3,856
Construction-in-progress (including capitalized interest)		4,711		4,933
Investment and development property	$	8,353	$	8,789

Construction-in-Progress balances are included in both our operating and development properties. The balances of our major projects along with the movements for the three months ended March 31, 2024, are shown below:



(Dollars in thousands)	Balance, ‎December 31, ‎2023		Additions during the period		Completed ‎during the ‎period		Foreign ‎currency ‎translation		Balance, ‎March 31, ‎2024
Courtenay Central development		6,412		—		—		(355)		6,057
Cinema developments and improvements		1,658		88		(35)		(14)		1,697
Other real estate projects		1,153		316		(156)		(21)		1,292
Total	$	9,223	$	404	$	(191)	$	(390)	$	9,046

Beginning in 2020, we have on an ongoing basis reviewed our various real estate holdings in light of the fact that our cash flow from cinema operations has been adversely affected initially by the governmentally mandated cinema closings ordered in response to the COVID-19 pandemic and then by the lengthy 2023 Hollywood Strikes, and that our overall cash flow continues to be adversely affected by unprecedented increases in interest rates and the impact of inflation and government mandated labor cost increases on our cost of goods sold and cost of operations. Until cinema revenues return to normal and interest rates reduce, other sources of cash will be needed to support our operations and limited funds will be available for capital investment in our properties. Between the fourth quarter of 2020 and the fourth quarter of 2023, we classified as assets held for sale disposal groups and thereafter monetized the following real estate assets: The Auburn/Redyard Entertainment Themed Center (“ETC”), Manukau (land), Coachella (land), the Royal George Theatre, our property in Maitland, New South Wales, our Invercargill, New Zealand cinema and associated ancillary land, and our office building in Culver City (sold in February 2024). A ‘disposal group’ represents assets to be disposed of in a single transaction. A disposal group may represent a single asset, or multiple assets. As of December 31, 2023, we classified as assets held for sale our approximately 26.6 acre parcel of industrial land in Williamsport, Pennsylvania, historically used as a rail yard.

Discussed below are those real estate transactions affecting the presentation in our consolidated balance sheet as of March 31, 2024 and 2023, and the profitability determination in our consolidated statements of income for the three months ended March 31, 2024, and 2023.

In May 2023, we classified our Culver City administrative building, commonly known as 5995 Sepulveda Blvd., as held for sale. Our book value (as opposed to fair value) of the property was $10.8 million, being the lower of cost and fair value less costs to sell. No adjustments to the book value of the assets contained within this disposal group were required. The disposal group consisted of land, a building and various leasehold improvements. The sale was completed on February 23, 2024. The proceeds were used to discharge the $8.3 million first mortgage which the property was encumbered with.


	March 31
(Dollars in thousands)	2024
Sales price	$	10,000
Net book value		(10,800)
Loss on sale, gross of direct costs		(800)
Direct sale costs incurred		(325)
Loss on sale, net of direct costs	$	(1,125)

In June 2023, we classified our approximately 26.6-acre industrial property at 2483 Trenton Avenue, Williamsport, Pennsylvania, as held for sale at the lower of cost and fair value less costs to sell. The current book value (as opposed to fair value) of the property is $460,000. The property is part of our historic railroad operations, consisting of land and an 18,000 square foot industrial building, and certain rail bed improvements. No adjustments to the book value of the assets contained within this disposal group were required. We expect to complete the sale within 12 months. The property is unencumbered by debt.