Item 1A. Risk Factors
Item 1A. Risk Factors
Except for the risk factor set forth below, there have been no material changes to the risk factors disclosed in "Risk Factors" in Part I, Item 1A of the 2021 Form 10-K.
In the November 8, 2022 general election, a City of Los Angeles ballot measure, Proposition ULA, proposed to increase transfer tax rates in the City of Los Angeles on real estate sales valued at $5 million or more. If enacted, the new rate would be 4% for properties valued at $5 million or more and 5.5% for properties valued at more than $10 million. At the time of the filing of this 10-Q, the vote tally for this ballot measure has not been completed, although the vote for the measure exceeded the vote against the ballot measure by not an insubstantial margin. As many of our properties are located in the City of Los Angeles, if Proposition ULA passes, it will reduce the amount of proceeds that we will receive when we sell our Los Angeles properties. This in turn may reduce our profitability, make our properties located in the City of Los Angeles less attractive than properties located elsewhere, and make us less competitive than REITs that do not have properties in the City of Los Angeles.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.