Property, net

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Property, net

Property, net:

Property, net consists of the following:

	June 30, 2019			December 31, 2018
Land	$	1,508,585		$	1,506,678
Buildings and improvements	6,304,541			6,288,308
Tenant improvements	693,655			678,110
Equipment and furnishings(1)	213,724			206,398
Construction in progress	189,264			199,326
	8,909,769			8,878,820
Less accumulated depreciation(1)	(2,220,224		)	(2,093,044		)
	$	6,689,545		$	6,785,776

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at June 30, 2019 (See Note 8—Leases).

Depreciation expense was $71,453 and $66,850 for the three months ended June 30, 2019 and 2018, respectively, and $142,170 and $134,794 for the six months ended June 30, 2019 and 2018, respectively.

The loss on sale or write down of assets, net was $9,059 and $9,518 for the three months ended June 30, 2019 and 2018, respectively, and $15,375 and $47,030 for the six months ended June 30, 2019 and 2018, respectively.

The loss on sale or write down of assets, net includes the write down of development costs of $9,059 and $666 for the three months ended June 30, 2019 and 2018, respectively, and $15,909 and $2,257 for the six months ended June 30, 2019 and 2018, respectively.

The loss on sale or write down of assets, net for the three and six months ended June 30, 2018 includes the impairment losses of $7,494 on two freestanding stores and $1,660 on Southridge Center. In addition, the loss on sale or write down of assets, net for the six months ended June 30, 2018 includes the impairment losses of $36,338 on SouthPark Mall and $1,043 on Promenade at Casa Grande. The impairment losses were due to the reduction of the estimated holding periods of the properties. The loss on sale or write down of assets, net for the three and six months ended June 30, 2018 also includes a loss of $311 on the sale of Promenade at Casa Grande (See Note 16—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 and six months ended June 30, 2018, 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)
June 30, 2018	$	72,700	$	—	$	72,700	$	—

The fair values relating to the impairments were based on sales contracts.