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Properties And Equipment

6 Months Ended

Jun. 30, 2026

Note 7 – Property and Equipment

Operating Property, net

Property associated with our operating activities as at June 30, 2026 and December 31, 2025, is summarized as follows:



	June 30,		December 31,
(Dollars in thousands)	2026		2025
Land	$	26,044	$	48,389
Building and improvements		172,255		170,906
Leasehold improvements		49,057		48,652
Fixtures and equipment		152,899		149,251
Construction-in-progress		1,473		1,964
Total cost		401,728		419,162
Less: accumulated depreciation		(220,603)		(211,188)
Operating property, net	$	181,125	$	207,974

Depreciation expense for operating property was $3.1 million and $6.3 million for the quarter and six months ended June 30, 2026, as compared to $3.4 million and $6.7 million for the quarter and six months ended June 30, 2025.

Construction-in-Progress – Operating Properties

Construction-in-Progress balances are included in our operating properties. The balances of our major projects along with the movements for the six months ended June 30, 2026, are shown below:



(Dollars in thousands)	Balance, ‎December 31, ‎2025		Additions during the period		Completed ‎during the ‎period		Transferred to Held for Sale		Foreign ‎currency ‎translation		Balance, ‎June 30, ‎2026
Cinema developments and improvements		1,665		297		(228)		(692)		3		1,045
Other real estate projects		299		126		—		—		3		428
Total	$	1,964	$	423	$	(228)	$	(692)	$	6	$	1,473

Recent Real Estate Monetizations

In order to support our liquidity, we have monetized certain of our real estate holdings. Details of those monetizations for the six months ended June 30, 2026, and the year ended December 31, 2025, are provided below.

Wellington, New Zealand property assets

On January 31, 2025, we sold our property assets in Wellington, New Zealand, including Courtenay Central, Tory Street car park and Wakefield Street car park, at a gross sale price of $21.5 million (NZ$38.0 million). The proceeds were used to pay off the Westpac mortgage on the properties, and to reduce our Bank of America debt. We have an Agreement to Lease the cinema portion from the Purchaser, which is expected to commence upon the completion of seismic upgrade work by the Landlord and cinema fit-out work by ourselves.

The gain on sale of this property was calculated as follows:


	March 31
(Dollars in thousands)	2025
Sales price	$	21,538
Net book value		(14,666)
Gain on sale, gross of direct costs		6,872
Direct sale costs incurred		(306)
Gain on sale, net of direct costs	$	6,566

Cannon Park, Townsville, Queensland, Australia

In May 2025, we sold our Cannon Park ETC property in Townsville, Queensland, Australia, for a gross sale price of $20.7 million (AU$32.0 million). The proceeds were used principally to pay off our NAB bridging facility, and to reduce our Bank of America debt. We retained a lease over the cinema.

The gain on sale of this property was calculated as follows:


	June 30
(Dollars in thousands)	2025
Sales price	$	20,698
Net book value		(18,361)
Gain on sale, gross of direct costs		2,337
Direct sale costs incurred		(518)
Gain on sale, net of direct costs	$	1,819

Disposal Groups Held for Sale

Cinemas 1,2,3, Manhattan

In February 2026 we classified our Cinemas 1,2,3 property as held for sale at the lower of cost and fair value less costs to sell. No adjustments to the book value, as opposed to fair value, of $24.0 million of the assets contained within the disposal group were required, which consists of the Cinemas 1,2,3 building and related improvements. We expect to complete the monetization of this property by the end of 2026.

Newberry Yard, Williamsport, Pennsylvania

In June 2023, we classified our industrial property at Newberry Yard, Williamsport, Pennsylvania, as held for sale at the lower of cost and fair value less costs to sell. The property is part of our historic railroad operations, consisting of land and an industrial building, and certain rail bed improvements. No adjustments to the book value of the assets contained within this disposal group were required. Sales efforts continue, and the property continues to meet the ASC 360 held for sale criteria.

Real Estate Acquisitions

Sutton Hill Associates

On December 19, 2025, we purchased Sutton Hill Associates, a California general partnership. As a consequence of that transaction (i) we took on $13.6 million in long term debt owed by Sutton Hill Associates to a third party, and (ii) short term payables in the amount of $7.1 million owed by our Company to certain Sutton Hill Associates subsidiaries were eliminated on consolidation. The long term debt was recorded in our Form 10-K on our balance sheet at the transaction date fair value of $7.6 million, reflecting the fact that the debt has a term maturing on September 30, 2035, with no interim payments of principal, is unsecured and bears interest at only 4.75% per annum payable quarterly in arrears.