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



	March 31,		December 31,
(Dollars in thousands)	2026		2025
Land	$	25,921	$	48,389
Building and improvements		171,852		170,906
Leasehold improvements		48,987		48,652
Fixtures and equipment		151,451		149,251
Construction-in-progress		1,461		1,964
Total cost		399,672		419,162
Less: accumulated depreciation		(216,715)		(211,188)
Operating property, net	$	182,957	$	207,974

Depreciation expense for operating property was $3.2 million for the quarter ended March 31, 2026, as compared to $3.3 million for the quarter ended March 31, 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 three months ended March 31, 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, ‎March 31, ‎2026
Cinema developments and improvements	$	1,665	$	100	$	—	$	(692)	$	42	$	1,115
Other real estate projects		299		44		—		—		3		346
Total	$	1,964	$	144	$	—	$	(692)	$	45	$	1,461

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 three months ended March 31, 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 property, 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

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 within 12 months.

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