Schedule III Real Estate and Accumulated Depreciation | SCHEDULE III Simon Property Group, Inc. Simon Property Group, L.P. Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Cost Capitalized Subsequent to Gross Amounts At Which Date of Initial Cost (3) Acquisition (3) Carried At Close of Period Construction Buildings and Buildings and Buildings and Accumulated or Name Location Encumbrances (6) Land Improvements Land Improvements Land Improvements Total (1) Depreciation (2) Acquisition Malls Barton Creek Square Austin, TX $ — $ 2,903 $ 20,929 $ 7,983 $ 74,248 $ 10,886 $ 95,177 $ 106,063 $ 60,183 Battlefield Mall Springfield, MO 117,500 3,919 27,231 3,000 66,714 6,919 93,945 100,864 70,821 Bay Park Square Green Bay, WI — 6,358 25,623 4,106 26,528 10,464 52,151 62,615 32,956 Brea Mall Brea (Los Angeles), CA — 39,500 209,202 2,993 71,244 42,493 280,446 322,939 141,980 (4) Broadway Square Tyler, TX — 11,306 32,431 — 34,660 11,306 67,091 78,397 36,959 (4) Burlington Mall Burlington (Boston), MA — 46,600 303,618 27,458 163,037 74,058 466,655 540,713 224,029 (4) Castleton Square Indianapolis, IN — 26,250 98,287 7,434 79,746 33,684 178,033 211,717 110,241 Cielo Vista Mall El Paso, TX — 1,005 15,262 608 55,602 1,613 70,864 72,477 47,039 College Mall Bloomington, IN — 1,003 16,245 720 71,898 1,723 88,143 89,866 43,238 Columbia Center Kennewick, WA — 17,441 66,580 — 33,367 17,441 99,947 117,388 58,618 Copley Place Boston, MA — — 378,045 — 193,429 — 571,474 571,474 222,354 (4) Coral Square Coral Springs (Miami), FL — 13,556 93,630 — 20,734 13,556 114,364 127,920 87,184 Cordova Mall Pensacola, FL — 18,626 73,091 7,321 68,923 25,947 142,014 167,961 71,696 (4) Domain, The Austin, TX 184,739 40,436 197,010 — 149,273 40,436 346,283 386,719 150,030 Empire Mall Sioux Falls, SD 190,000 35,998 192,186 — 27,742 35,998 219,928 255,926 53,845 (5) Fashion Mall at Keystone, The Indianapolis, IN — — 120,579 29,145 101,035 29,145 221,614 250,759 117,915 (4) Firewheel Town Center Garland (Dallas), TX — 8,438 82,716 — 28,593 8,438 111,309 119,747 60,730 Forum Shops at Caesars, The Las Vegas, NV — — 276,567 — 265,368 — 541,935 541,935 260,765 Greenwood Park Mall Greenwood (Indianapolis), IN — 2,423 23,445 5,253 119,671 7,676 143,116 150,792 84,288 Haywood Mall Greenville, SC — 11,585 133,893 6 41,791 11,591 175,684 187,275 106,328 (4) Ingram Park Mall San Antonio, TX 128,060 733 16,972 37 39,964 770 56,936 57,706 30,283 King of Prussia King of Prussia (Philadelphia), PA — 175,063 1,128,200 — 356,883 175,063 1,485,083 1,660,146 351,350 (5) La Plaza Mall McAllen, TX — 87,912 9,828 6,569 172,054 94,481 181,882 276,363 41,344 Lakeline Mall Cedar Park (Austin), TX — 10,088 81,568 14 26,260 10,102 107,828 117,930 60,355 Lenox Square Atlanta, GA — 38,058 492,411 — 129,085 38,058 621,496 659,554 336,512 (4) Livingston Mall Livingston (New York), NJ — 22,214 105,250 — 47,205 22,214 152,455 174,669 83,004 (4) Mall of Georgia Buford (Atlanta), GA — 47,492 326,633 — 13,987 47,492 340,620 388,112 173,568 (5) Simon Property Group, Inc. Simon Property Group, L.P. Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Cost Capitalized Subsequent to Gross Amounts At Which Date of Initial Cost (3) Acquisition (3) Carried At Close of Period Construction Buildings and Buildings and Buildings and Accumulated or Name Location Encumbrances (6) Land Improvements Land Improvements Land Improvements Total (1) Depreciation (2) Acquisition McCain Mall N. Little Rock, AR $ — $ — $ 9,515 $ 10,530 $ 28,402 $ 10,530 $ 37,917 $ 48,447 $ 14,607 Menlo Park Mall Edison (New York), NJ — 65,684 223,252 — 76,405 65,684 299,657 365,341 171,764 (4) Midland Park Mall Midland, TX 75,464 687 9,213 2,121 31,348 2,808 40,561 43,369 21,607 Miller Hill Mall Duluth, MN — 2,965 18,092 1,811 43,807 4,776 61,899 66,675 42,841 Montgomery Mall North Wales (Philadelphia), PA 100,000 27,105 86,915 — 64,352 27,105 151,267 178,372 66,982 (5) North East Mall Hurst (Dallas), TX — 128 12,966 19,010 147,128 19,138 160,094 179,232 110,442 Northgate Seattle, WA — 23,610 115,992 — 125,856 23,610 241,848 265,458 128,076 Ocean County Mall Toms River (New York), NJ — 20,404 124,945 3,277 54,058 23,681 179,003 202,684 91,058 (4) Orland Square Orland Park (Chicago), IL — 35,514 129,906 — 76,956 35,514 206,862 242,376 103,986 (4) Oxford Valley Mall Langhorne (Philadelphia), PA 61,076 24,544 100,287 — 20,195 24,544 120,482 145,026 79,717 (4) Penn Square Mall Oklahoma City, OK 310,000 2,043 155,958 — 59,474 2,043 215,432 217,475 122,459 (4) Pheasant Lane Mall Nashua, NH — 3,902 155,068 550 50,241 4,452 205,309 209,761 105,301 (5) Phipps Plaza Atlanta, GA — 15,005 210,610 — 109,206 15,005 319,816 334,821 150,091 (4) Plaza Carolina Carolina (San Juan), PR 225,000 15,493 279,560 — 71,902 15,493 351,462 366,955 152,228 (4) Prien Lake Mall Lake Charles, LA — 1,842 2,813 3,053 58,570 4,895 61,383 66,278 29,576 Rockaway Townsquare Rockaway (New York), NJ — 41,918 212,257 — 52,808 41,918 265,065 306,983 143,714 (4) Roosevelt Field Garden City (New York), NY — 163,160 702,008 1,246 354,520 164,406 1,056,528 1,220,934 465,477 (4) Ross Park Mall Pittsburgh, PA — 23,541 90,203 5,815 113,912 29,356 204,115 233,471 120,441 Santa Rosa Plaza Santa Rosa, CA — 10,400 87,864 — 28,488 10,400 116,352 126,752 62,941 (4) Shops at Chestnut Hill, The Chestnut Hill (Boston), MA 120,000 449 25,102 38,864 104,339 39,313 129,441 168,754 32,417 (5) Shops at Nanuet, The Nanuet, NY — 28,125 142,860 — 10,582 28,125 153,442 181,567 32,667 Shops at Riverside, The Hackensack (New York), NJ 130,000 13,521 238,746 — 167,109 13,521 405,855 419,376 66,445 (4) (5) South Hills Village Pittsburgh, PA — 23,445 125,840 1,472 77,461 24,917 203,301 228,218 97,896 (4) South Shore Plaza Braintree (Boston), MA — 101,200 301,495 — 163,860 101,200 465,355 566,555 239,269 (4) Southdale Mall Edina (Minneapolis), MN 144,514 41,430 184,967 — 103,704 41,430 288,671 330,101 56,075 (4) (5) SouthPark Charlotte, NC — 42,092 188,055 100 194,303 42,192 382,358 424,550 202,385 (4) Southridge Mall Greendale (Milwaukee), WI 116,968 12,359 130,111 1,939 19,905 14,298 150,016 164,314 47,949 (4) (5) St. Charles Towne Center Waldorf (Washington, DC), MD — 7,710 52,934 1,180 28,363 8,890 81,297 90,187 57,442 Simon Property Group, Inc. Simon Property Group, L.P. Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Cost Capitalized Subsequent to Gross Amounts At Which Date of Initial Cost (3) Acquisition (3) Carried At Close of Period Construction Buildings and Buildings and Buildings and Accumulated or Name Location Encumbrances (6) Land Improvements Land Improvements Land Improvements Total (1) Depreciation (2) Acquisition Stanford Shopping Center Palo Alto (San Jose), CA $ — $ — $ 339,537 $ — $ 156,919 $ — $ 496,456 $ 496,456 $ 180,196 (4) Summit Mall Akron, OH 85,000 15,374 51,137 — 56,286 15,374 107,423 122,797 60,869 Tacoma Mall Tacoma (Seattle), WA — 37,113 125,826 — 130,010 37,113 255,836 292,949 129,641 Tippecanoe Mall Lafayette, IN — 2,897 8,439 5,517 48,513 8,414 56,952 65,366 42,488 Town Center at Boca Raton Boca Raton (Miami), FL — 64,200 307,317 — 227,545 64,200 534,862 599,062 275,246 (4) Town Center at Cobb Kennesaw (Atlanta), GA 185,305 32,355 158,225 — 23,534 32,355 181,759 214,114 116,310 (5) Towne East Square Wichita, KS — 8,525 18,479 4,108 48,773 12,633 67,252 79,885 46,725 Treasure Coast Square Jensen Beach, FL — 11,124 72,990 3,067 40,629 14,191 113,619 127,810 71,016 Tyrone Square St. Petersburg (Tampa), FL — 15,638 120,962 1,459 51,700 17,097 172,662 189,759 101,515 University Park Mall Mishawaka, IN — 10,762 118,164 7,000 59,439 17,762 177,603 195,365 144,655 (4) Walt Whitman Shops Huntington Station (New York), NY — 51,700 111,258 3,789 126,664 55,489 237,922 293,411 114,751 (4) White Oaks Mall Springfield, IL 49,500 3,024 35,692 2,102 63,451 5,126 99,143 104,269 53,418 Wolfchase Galleria Memphis, TN 159,157 16,407 128,276 — 18,036 16,407 146,312 162,719 90,260 (4) Woodland Hills Mall Tulsa, OK — 34,211 187,123 — 29,732 34,211 216,855 251,066 129,540 (5) Premium Outlets Albertville Premium Outlets Albertville (Minneapolis), MN — 3,900 97,059 — 9,810 3,900 106,869 110,769 49,034 (4) Allen Premium Outlets Allen (Dallas), TX — 20,932 69,788 — 44,420 20,932 114,208 135,140 30,989 (4) Aurora Farms Premium Outlets Aurora (Cleveland), OH — 2,370 24,326 — 8,441 2,370 32,767 35,137 22,781 (4) Birch Run Premium Outlets Birch Run (Detroit), MI 123,000 11,477 77,856 — 8,129 11,477 85,985 97,462 31,239 (4) Camarillo Premium Outlets Camarillo (Los Angeles), CA — 16,670 224,721 395 69,778 17,065 294,499 311,564 131,826 (4) Carlsbad Premium Outlets Carlsbad (San Diego), CA — 12,890 184,990 96 8,476 12,986 193,466 206,452 79,085 (4) Carolina Premium Outlets Smithfield (Raleigh), NC 44,169 3,175 59,863 5,311 7,341 8,486 67,204 75,690 35,141 (4) Chicago Premium Outlets Aurora (Chicago), IL — 659 118,005 13,050 102,843 13,709 220,848 234,557 73,145 (4) Cincinnati Premium Outlets Monroe (Cincinnati), OH — 14,117 71,520 — 4,991 14,117 76,511 90,628 33,752 Clinton Crossing Premium Outlets Clinton, CT — 2,060 107,556 1,532 5,201 3,592 112,757 116,349 54,256 (4) Denver Premium Outlets Thornton (Denver), CO — 12,875 45,335 10 78,668 12,885 124,003 136,888 1,785 Desert Hills Premium Outlets Cabazon (Palm Springs), CA — 3,440 338,679 — 108,510 3,440 447,189 450,629 160,549 (4) Edinburgh Premium Outlets Edinburgh (Indianapolis), IN — 2,857 47,309 — 17,406 2,857 64,715 67,572 32,847 (4) Simon Property Group, Inc. Simon Property Group, L.P. Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Cost Capitalized Subsequent to Gross Amounts At Which Date of Initial Cost (3) Acquisition (3) Carried At Close of Period Construction Buildings and Buildings and Buildings and Accumulated or Name Location Encumbrances (6) Land Improvements Land Improvements Land Improvements Total (1) Depreciation (2) Acquisition Ellenton Premium Outlets Ellenton (Tampa), FL $ 178,000 $ 15,807 $ 182,412 $ — $ 7,174 $ 15,807 $ 189,586 $ 205,393 $ 86,680 (4) Folsom Premium Outlets Folsom (Sacramento), CA — 9,060 50,281 — 5,073 9,060 55,354 64,414 29,159 (4) Gilroy Premium Outlets Gilroy (San Jose), CA — 9,630 194,122 — 13,992 9,630 208,114 217,744 95,334 (4) Grand Prairie Premium Outlets Grand Prairie (Dallas), TX 114,013 9,497 194,245 — 1,274 9,497 195,519 205,016 42,516 Grove City Premium Outlets Grove City (Pittsburgh), PA 140,000 6,421 121,880 — 7,510 6,421 129,390 135,811 59,332 (4) Gulfport Premium Outlets Gulfport, MS 50,000 — 27,949 — 7,315 — 35,264 35,264 13,730 (4) Hagerstown Premium Outlets Hagerstown (Baltimore/Washington, DC), MD 75,951 3,576 85,883 — 3,086 3,576 88,969 92,545 33,195 (4) Houston Premium Outlets Cypress (Houston), TX — 8,695 69,350 — 44,459 8,695 113,809 122,504 46,806 Jackson Premium Outlets Jackson (New York), NJ — 6,413 104,013 3 8,473 6,416 112,486 118,902 46,963 (4) Jersey Shore Premium Outlets Tinton Falls (New York), NJ — 15,390 50,979 — 76,170 15,390 127,149 142,539 56,150 Johnson Creek Premium Outlets Johnson Creek, WI — 2,800 39,546 — 7,078 2,800 46,624 49,424 20,882 (4) Kittery Premium Outlets Kittery, ME — 11,832 94,994 — 10,289 11,832 105,283 117,115 41,505 (4) Las Americas Premium Outlets San Diego, CA — 45,168 251,878 — 9,369 45,168 261,247 306,415 86,814 (4) Las Vegas North Premium Outlets Las Vegas, NV — 25,435 134,973 16,536 150,374 41,971 285,347 327,318 112,688 (4) Las Vegas South Premium Outlets Las Vegas, NV — 13,085 160,777 — 31,774 13,085 192,551 205,636 76,452 (4) Lee Premium Outlets Lee, MA 51,701 9,167 52,212 — 3,487 9,167 55,699 64,866 24,893 (4) Leesburg Corner Premium Outlets Leesburg (Washington, DC), VA — 7,190 162,023 — 8,146 7,190 170,169 177,359 80,158 (4) Lighthouse Place Premium Outlets Michigan City (Chicago, IL), IN — 6,630 94,138 — 10,169 6,630 104,307 110,937 53,431 (4) Merrimack Premium Outlets Merrimack, NH 121,753 14,975 118,428 — 3,129 14,975 121,557 136,532 34,503 Napa Premium Outlets Napa, CA — 11,400 45,023 — 7,769 11,400 52,792 64,192 24,479 (4) North Bend Premium Outlets North Bend (Seattle), WA — 2,143 36,197 — 5,609 2,143 41,806 43,949 17,534 (4) North Georgia Premium Outlets Dawsonville (Atlanta), GA — 4,300 137,020 — 1,414 4,300 138,434 142,734 61,019 (4) Orlando International Premium Outlets Orlando, FL — 31,998 472,815 — 11,836 31,998 484,651 516,649 149,916 (4) Orlando Vineland Premium Outlets Orlando, FL — 14,040 382,949 36,023 2,193 50,063 385,142 435,205 154,691 (4) Petaluma Village Premium Outlets Petaluma (San Francisco), CA — 13,322 13,710 — 4,038 13,322 17,748 31,070 10,652 (4) Philadelphia Premium Outlets Limerick (Philadelphia), PA — 16,676 105,249 — 21,889 16,676 127,138 143,814 63,823 Phoenix Premium Outlets Chandler (Phoenix), AZ — — 63,082 — — — 63,082 63,082 19,033 Pismo Beach Premium Outlets Pismo Beach, CA 35,360 4,317 19,044 — 2,967 4,317 22,011 26,328 11,157 (4) Simon Property Group, Inc. Simon Property Group, L.P. Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Cost Capitalized Subsequent to Gross Amounts At Which Date of Initial Cost (3) Acquisition (3) Carried At Close of Period Construction Buildings and Buildings and Buildings and Accumulated or Name Location Encumbrances (6) Land Improvements Land Improvements Land Improvements Total (1) Depreciation (2) Acquisition Pleasant Prairie Premium Outlets Pleasant Prairie (Chicago, IL/Milwaukee), WI $ 145,000 $ 16,823 $ 126,686 $ — $ 6,685 $ 16,823 $ 133,371 $ 150,194 $ 45,896 (4) Puerto Rico Premium Outlets Barceloneta, PR 160,000 20,586 114,021 — 6,590 20,586 120,611 141,197 41,964 (4) Queenstown Premium Outlets Queenstown (Baltimore), MD 62,119 8,129 61,950 — 5,149 8,129 67,099 75,228 24,600 (4) Rio Grande Valley Premium Outlets Mercedes (McAllen), TX — 12,229 41,547 — 31,748 12,229 73,295 85,524 39,351 Round Rock Premium Outlets Round Rock (Austin), TX — 14,706 82,252 — 6,543 14,706 88,795 103,501 47,625 San Francisco Premium Outlets Livermore (San Francisco), CA — 21,925 308,694 46,177 75,685 68,102 384,379 452,481 72,985 San Marcos Premium Outlets San Marcos (Austin/San Antonio), TX — 13,180 287,179 — 12,120 13,180 299,299 312,479 94,558 (4) Seattle Premium Outlets Tulalip (Seattle), WA — — 103,722 — 55,069 — 158,791 158,791 68,934 (4) St. Augustine Premium Outlets St. Augustine (Jacksonville), FL — 6,090 57,670 2 11,192 6,092 68,862 74,954 34,709 (4) Tampa Premium Outlets Lutz (Tampa), FL — 14,298 97,188 121 4,947 14,419 102,135 116,554 14,617 The Crossings Premium Outlets Tannersville, PA 108,225 7,720 172,931 — 18,388 7,720 191,319 199,039 79,224 (4) Tucson Premium Outlets Marana (Tucson), AZ — 12,508 69,677 — 5,573 12,508 75,250 87,758 11,011 Vacaville Premium Outlets Vacaville, CA — 9,420 84,850 — 17,665 9,420 102,515 111,935 51,798 (4) Waikele Premium Outlets Waipahu (Honolulu), HI — 22,630 77,316 — 20,655 22,630 97,971 120,601 42,505 (4) Waterloo Premium Outlets Waterloo, NY — 3,230 75,277 — 13,857 3,230 89,134 92,364 43,169 (4) Williamsburg Premium Outlets Williamsburg, VA 185,000 10,323 223,789 — 7,445 10,323 231,234 241,557 72,356 (4) Woodburn Premium Outlets Woodburn (Portland), OR — 9,414 150,414 — 2,556 9,414 152,970 162,384 35,847 (4) Woodbury Common Premium Outlets Central Valley (New York), NY — 11,110 862,559 1,658 242,457 12,768 1,105,016 1,117,784 386,969 (4) Wrentham Village Premium Outlets Wrentham (Boston), MA — 4,900 282,031 — 16,054 4,900 298,085 302,985 129,941 (4) The Mills Arizona Mills Tempe (Phoenix), AZ 152,911 41,936 297,289 — 13,233 41,936 310,522 352,458 53,789 (4) (5) Great Mall Milpitas (San Jose), CA — 69,853 463,101 — 53,937 69,853 517,038 586,891 118,149 (4) (5) Gurnee Mills Gurnee (Chicago), IL 264,582 41,133 297,911 — 27,761 41,133 325,672 366,805 77,680 (4) (5) Mills at Jersey Gardens, The Elizabeth, NJ 350,000 120,417 865,605 — 16,258 120,417 881,863 1,002,280 133,622 (4) Opry Mills Nashville, TN 375,000 51,000 327,503 — 16,256 51,000 343,759 394,759 80,730 (4) (5) Outlets at Orange, The Orange (Los Angeles), CA 215,000 65,516 211,322 — 1,393 65,516 212,715 278,231 2,028 (4) (5) Potomac Mills Woodbridge (Washington, DC), VA 416,000 61,755 425,370 — 36,909 61,755 462,279 524,034 115,348 (4) (5) Sawgrass Mills Sunrise (Miami), FL — 194,002 1,641,153 5,395 178,168 199,397 1,819,321 2,018,718 402,390 (4) (5) Simon Property Group, Inc. Simon Property Group, L.P. Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Cost Capitalized Subsequent to Gross Amounts At Which Date of Initial Cost (3) Acquisition (3) Carried At Close of Period Construction Buildings and Buildings and Buildings and Accumulated or Name Location Encumbrances (6) Land Improvements Land Improvements Land Improvements Total (1) Depreciation (2) Acquisition Designer Outlets La Reggia Designer Outlet Marcianise (Naples), Italy $ 148,133 $ 37,220 $ 233,179 $ — $ 5,742 $ 37,220 $ 238,921 $ 276,141 $ 27,147 (4) (5) (7) Noventa Di Piave Designer Outlet Venice, Italy 297,566 38,793 309,284 — 40,462 38,793 349,746 388,539 34,041 (4) (5) (7) Parndorf Designer Outlet Vienna, Austria 105,293 14,903 221,442 — 3,918 14,903 225,360 240,263 31,851 (4) (5) (7) Provence Designer Outlet Provence, France 93,020 38,467 75,102 — — 38,467 75,102 113,569 9,983 (4) (5) (7) Roermond Designer Outlet Roermond, Netherlands 263,232 15,035 400,094 — 3,735 15,035 403,829 418,864 54,243 (4) (5) (7) Rosada Designer Outlet Roosendaal, Netherlands 66,523 22,191 108,069 — 1,672 22,191 109,741 131,932 8,980 (4) (5) (7) Community Centers ABQ Uptown Albuquerque, NM — 6,374 75,333 4,054 7,087 10,428 82,420 92,848 23,653 (4) University Park Village Fort Worth, TX 55,000 18,031 100,523 — 4,827 18,031 105,350 123,381 14,774 (4) Other Properties Calhoun Marketplace Calhoun, GA 18,670 1,745 12,529 — 2,325 1,745 14,854 16,599 8,976 (4) Florida Keys Outlet Center Florida City, FL 17,000 1,112 1,748 — 3,992 1,112 5,740 6,852 2,974 (4) Gaffney Marketplace Gaffney (Greenville/Charlotte), SC 30,159 4,056 32,371 — 6,103 4,056 38,474 42,530 17,356 (4) Lebanon Marketplace Lebanon (Nashville), TN — 1,758 10,189 — 271 1,758 10,460 12,218 7,011 (4) Liberty Village Marketplace Flemington (New York), NJ — 5,670 28,904 — 2,345 5,670 31,249 36,919 30,373 (4) Lincoln Plaza King of Prussia (Philadelphia), PA — — 21,299 — 10,999 — 32,298 32,298 15,234 (4) Orlando Outlet Marketplace Orlando, FL — 3,367 1,557 — 2,990 3,367 4,547 7,914 2,229 (4) Osage Beach Marketplace Osage Beach, MO — 9,460 85,804 — 8,595 9,460 94,399 103,859 49,744 (4) Other pre-development costs — 80,718 80,172 959 — 81,677 80,172 161,849 78 Other — 2,615 7,103 — — 2,615 7,103 9,718 7,151 Currency Translation Adjustment — 7,794 24,126 — 29,580 7,794 53,706 61,500 (14,925) $ 6,844,662 $ 3,321,044 $ 25,018,405 $ 351,979 $ 7,976,532 $ 3,673,023 $ 32,994,937 $ 36,667,960 $ 12,632,690 Simon Property Group, Inc. Simon Property Group, L.P. Notes to Schedule III as of December 31, 2018 (Dollars in thousands) (1) Reconciliation of Real Estate Properties: The changes in real estate assets for the years ended December 31, 2018, 2017, and 2016 are as follows: 2018 2017 2016 Balance, beginning of year $ 36,014,506 $ 34,897,942 $ 33,132,885 Acquisitions and consolidations (7) 328,265 328,621 1,331,511 Improvements 758,135 731,863 658,734 Disposals and deconsolidations (357,622) (125,499) (180,433) Currency Translation Adjustment (75,324) 181,579 (44,755) Balance, close of year $ 36,667,960 $ 36,014,506 $ 34,897,942 The unaudited aggregate cost of domestic consolidated real estate assets for U.S. federal income tax purposes as of December 31, 2018 was $20,963,919. (2) Reconciliation of Accumulated Depreciation: The changes in accumulated depreciation for the years ended December 31, 2018, 2017, and 2016 are as follows: 2018 2017 2016 Balance, beginning of year $ 11,704,223 $ 10,664,738 $ 9,696,420 Depreciation expense (7) 1,106,053 1,121,863 1,089,347 Disposals and deconsolidations (190,241) (81,187) (117,568) Currency Translation Adjustment 12,655 (1,191) (3,461) Balance, close of year $ 12,632,690 $ 11,704,223 $ 10,664,738 Depreciation of our investment in buildings and improvements reflected in the consolidated statements of operations and comprehensive income is calculated over the estimated original lives of the assets as noted below. · Buildings and Improvements — typically 10‑35 years for the structure, 15 years for landscaping and parking lot, and 10 years for HVAC equipment. · Tenant Allowances and Improvements — shorter of lease term or useful life. (3) Initial cost generally represents net book value at December 20, 1993, except for acquired properties and new developments after December 20, 1993. Initial cost also includes any new developments that are opened during the current year. Costs of disposals and impairments of property are first reflected as a reduction to cost capitalized subsequent to acquisition. (4) Not developed/constructed by us or our predecessors. The date of construction represents the initial acquisition date for assets in which we have acquired multiple interests. (5) Initial cost for these properties is the cost at the date of consolidation for properties previously accounted for under the equity method of accounting. (6) Encumbrances represent face amount of mortgage debt and exclude any premiums or discounts and deferred financing costs. (7) Represents the original cost and does not include subsequent currency translation adjustments. |