Acquired Intangible Assets And Liabilities

9 Months Ended

Sep. 30, 2012

Acquired Intangible Assets And Liabilities

4. Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (acquired in place lease value and acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of September 30, 2012 and December 31, 2011.

	Balance as of
(Amounts in thousands)	September 30, 2012			December 31, 2011
Acquired in place lease value:
Gross amount	$	708,968		$	545,409
Accumulated amortization		(351,596	)		(312,499	)
Net	$	357,372		$	232,910
Acquired above-market lease value:
Gross amount	$	134,079		$	87,800
Accumulated amortization		(65,810	)		(58,099	)
Net	$	68,269		$	29,701
Acquired below-market lease value:
Gross amount	$	283,543		$	201,275
Accumulated amortization		(130,667	)		(115,456	)
Net	$	152,876		$	85,819

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $2.3 million and $2.0 million for the three months ended September 30, 2012 and 2011, respectively, and $7.4 million and $5.7 million for the nine months ended September 30, 2012 and 2011, respectively. The expected average remaining lives for acquired below market leases and acquired above market leases is 7.5 years and 5.8 years, respectively, as of September 30, 2012. Estimated annual amortization of acquired below-market lease value, net of acquired above-market lease value, for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	11,091
2014		9,161
2015		8,044
2016		7,137
2017		5,613

Costs associated with extending or renewing acquired leases are capitalized and classified as deferred leasing costs. Amortization of acquired in place lease value (a component of depreciation and amortization expense) was $14.5 million and $13.5 million for the three months ended September 30, 2012 and 2011, respectively, and $38.9 million and $41.3 million for the nine months ended September 30, 2012 and 2011, respectively. The expected average amortization period for acquired in place lease value is 7.4 years as of September 30, 2012. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.9 years as of September 30, 2012. Estimated annual amortization of acquired in place lease value for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	57,995
2014		52,791
2015		44,109
2016		41,653
2017		26,947

Digital Realty Trust, L.P. [Member]

Acquired Intangible Assets And Liabilities

4. Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (acquired in place lease value and acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of September 30, 2012 and December 31, 2011.

	Balance as of
(Amounts in thousands)	September 30, 2012			December 31, 2011
Acquired in place lease value:
Gross amount	$	708,968		$	545,409
Accumulated amortization		(351,596	)		(312,499	)
Net	$	357,372		$	232,910
Acquired above-market lease value:
Gross amount	$	134,079		$	87,800
Accumulated amortization		(65,810	)		(58,099	)
Net	$	68,269		$	29,701
Acquired below-market lease value:
Gross amount	$	283,543		$	201,275
Accumulated amortization		(130,667	)		(115,456	)
Net	$	152,876		$	85,819

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $2.3 million and $2.0 million for the three months ended September 30, 2012 and 2011, respectively, and $7.4 million and $5.7 million for the nine months ended September 30, 2012 and 2011, respectively. The expected average remaining lives for acquired below market leases and acquired above market leases is 7.5 years and 5.8 years, respectively, as of September 30, 2012. Estimated annual amortization of acquired below-market lease value, net of acquired above-market lease value, for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	11,091
2014		9,161
2015		8,044
2016		7,137
2017		5,613

Costs associated with extending or renewing acquired leases are capitalized and classified as deferred leasing costs. Amortization of acquired in place lease value (a component of depreciation and amortization expense) was $14.5 million and $13.5 million for the three months ended September 30, 2012 and 2011, respectively, and $38.9 million and $41.3 million for the nine months ended September 30, 2012 and 2011, respectively. The expected average amortization period for acquired in place lease value is 7.4 years as of September 30, 2012. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.9 years as of September 30, 2012. Estimated annual amortization of acquired in place lease value for each of the five succeeding years, commencing January 1, 2013 is as follows:

(Amounts in thousands)
2013	$	57,995
2014		52,791
2015		44,109
2016		41,653
2017		26,947