Acquired Intangible Assets And Liabilities

6 Months Ended

Jun. 30, 2013

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 June 30, 2013 and December 31, 2012.  

	Balance as of
(Amounts in thousands)	June 30, 2013	December 31, 2012
Acquired in place lease value:
Gross amount	$        727,521	$          720,373
Accumulated amortization	(396,284)	(367,088)
Net	$        331,237	$          353,285
Acquired above market leases:
Gross amount	$        131,596	$          134,480
Accumulated amortization	(75,286)	(69,425)
Net	$          56,310	$            65,055
Acquired below market leases:
Gross amount	$        286,318	$          285,509
Accumulated amortization	(149,021)	(137,276)
Net	$        137,297	$          148,233

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $3.0 million and $2.9 million for the three months ended June 30, 2013 and 2012, respectively, and $6.1 million and $5.1 million for the six months ended June 30, 2013 and 2012, respectively. The expected average remaining lives for acquired below market leases and acquired above market leases is 6.7 years and 4.9 years, respectively, as of June 30, 2013. 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, 2014 is as follows:

(Amounts in thousands)
2014	$           10,132
2015	9,152
2016	7,941
2017	6,496
2018	3,248

Amortization of acquired in place lease value (a component of depreciation and amortization expense) was $15.4 million and $12.4 million for the threemonths ended June 30, 2013 and 2012, respectively, and $30.3 million and $24.3 million for the six months ended June 30, 2013 and 2012, respectively. The expected average amortization period for acquired in place lease value is 6.9 years as of June 30, 2013. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.5 years as of June 30, 2013. Estimated annual amortization of acquired in place lease value for each of the five succeeding years, commencing January 1, 2014 is as follows:

(Amounts in thousands)
2014	$         55,179
2015	45,905
2016	42,880
2017	29,923
2018	27,065

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 June 30, 2013 and December 31, 2012.  

	Balance as of
(Amounts in thousands)	June 30, 2013	December 31, 2012
Acquired in place lease value:
Gross amount	$        727,521	$          720,373
Accumulated amortization	(396,284)	(367,088)
Net	$        331,237	$          353,285
Acquired above market leases:
Gross amount	$        131,596	$          134,480
Accumulated amortization	(75,286)	(69,425)
Net	$          56,310	$            65,055
Acquired below market leases:
Gross amount	$        286,318	$          285,509
Accumulated amortization	(149,021)	(137,276)
Net	$        137,297	$          148,233

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $3.0 million and $2.9 million for the three months ended June 30, 2013 and 2012, respectively, and $6.1 million and $5.1 million for the six months ended June 30, 2013 and 2012, respectively. The expected average remaining lives for acquired below market leases and acquired above market leases is 6.7 years and 4.9 years, respectively, as of June 30, 2013. 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, 2014 is as follows:

(Amounts in thousands)
2014	$           10,132
2015	9,152
2016	7,941
2017	6,496
2018	3,248

Amortization of acquired in place lease value (a component of depreciation and amortization expense) was $15.4 million and $12.4 million for the threemonths ended June 30, 2013 and 2012, respectively, and $30.3 million and $24.3 million for the six months ended June 30, 2013 and 2012, respectively. The expected average amortization period for acquired in place lease value is 6.9 years as of June 30, 2013. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.5 years as of June 30, 2013. Estimated annual amortization of acquired in place lease value for each of the five succeeding years, commencing January 1, 2014 is as follows:

(Amounts in thousands)
2014	$         55,179
2015	45,905
2016	42,880
2017	29,923
2018	27,065