At March 31, 2026 and December 31, 2025, property and equipment consisted of the following:


		March 31, 2026		December 31, 2025
		(in thousands)
Buildings and improvements	$	364,409	$	361,898
Equipment, computers and furniture		238,458		230,532
Leasehold improvements		280,824		277,518
Land		35,207		35,207
Land improvements		6,121		6,312
Assets under construction		24,568		22,854
Capitalized interest		35,083		34,763
Total property and equipment		984,670		969,084
Less: accumulated depreciation		(298,171)		(278,191)
Property and equipment, net	$	686,499	$	690,893

Assets under construction represent costs associated with construction projects related to cultivation and production facilities and retail stores.

Depreciation expense for the three months ended March 31, 2026 totaled $20,730 thousand, of which $13,229 thousand is included in cost of goods sold. Depreciation expense for the three months ended March 31, 2025 totaled $16,837 thousand, of which $10,749 thousand is included in cost of goods sold.