Acquired Intangible Assets And Liabilities

3 Months Ended

Mar. 31, 2014

Acquired Intangible Assets And Liabilities

5. 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 March 31, 2014 and December 31, 2013.  

	Balance as of
(Amounts in thousands)	March 31, 2014	December 31, 2013
Acquired in-place lease value:
Gross amount	$            721,961	$           725,458
Accumulated amortization	(438,789)	(423,549)
Net	$            283,172	$           301,909
Acquired above-market leases:
Gross amount	$            133,064	$           132,750
Accumulated amortization	(83,543)	(80,486)
Net	$               49,521	$             52,264
Acquired below-market leases:
Gross amount	$            290,365	$           291,638
Accumulated amortization	(167,213)	(161,369)
Net	$            123,152	$           130,269

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $2.8 million and $3.0 million for the three months ended March 31, 2014 and 2013, respectively. The expected average remaining lives for acquired below-market leases and acquired above-market leases is 6.5 years and 4.3 years, respectively, as of March 31, 2014. Estimated annual amortization of acquired below-market lease value, net of acquired above-market lease value, for each of the five succeeding years and thereafter, commencing April 1, 2014 is as follows:

(Amounts in thousands)
Remainder of 2014	$           7,171
2015	8,862
2016	7,540
2017	6,038
2018	4,419
Thereafter	39,601
Total	$         73,631

Amortization of acquired in-place lease value (a component of depreciation and amortization expense) was $15.1 million and $14.9 million for the three months ended March 31, 2014 and 2013, respectively. The expected average amortization period for acquired in-place lease value is 6.4 years as of March 31, 2014. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.0 years as of March 31, 2014. Estimated annual amortization of acquired in-place lease value for each of the five succeeding years and thereafter, commencing April 1, 2014 is as follows:

(Amounts in thousands)
Remainder of 2014	$         39,761
2015	44,295
2016	41,180
2017	28,363
2018	25,997
Thereafter	103,576
Total	$       283,172

Digital Realty Trust, L.P. [Member]

Acquired Intangible Assets And Liabilities

5. 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 March 31, 2014 and December 31, 2013.  

	Balance as of
(Amounts in thousands)	March 31, 2014	December 31, 2013
Acquired in-place lease value:
Gross amount	$            721,961	$           725,458
Accumulated amortization	(438,789)	(423,549)
Net	$            283,172	$           301,909
Acquired above-market leases:
Gross amount	$            133,064	$           132,750
Accumulated amortization	(83,543)	(80,486)
Net	$               49,521	$             52,264
Acquired below-market leases:
Gross amount	$            290,365	$           291,638
Accumulated amortization	(167,213)	(161,369)
Net	$            123,152	$           130,269

Amortization of acquired below-market lease value, net of acquired above-market lease value, resulted in an increase to rental revenues of $2.8 million and $3.0 million for the three months ended March 31, 2014 and 2013, respectively. The expected average remaining lives for acquired below-market leases and acquired above-market leases is 6.5 years and 4.3 years, respectively, as of March 31, 2014. Estimated annual amortization of acquired below-market lease value, net of acquired above-market lease value, for each of the five succeeding years and thereafter, commencing April 1, 2014 is as follows:

(Amounts in thousands)
Remainder of 2014	$           7,171
2015	8,862
2016	7,540
2017	6,038
2018	4,419
Thereafter	39,601
Total	$         73,631

Amortization of acquired in-place lease value (a component of depreciation and amortization expense) was $15.1 million and $14.9 million for the three months ended March 31, 2014 and 2013, respectively. The expected average amortization period for acquired in-place lease value is 6.4 years as of March 31, 2014. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.0 years as of March 31, 2014. Estimated annual amortization of acquired in-place lease value for each of the five succeeding years and thereafter, commencing April 1, 2014 is as follows:

(Amounts in thousands)
Remainder of 2014	$         39,761
2015	44,295
2016	41,180
2017	28,363
2018	25,997
Thereafter	103,576
Total	$       283,172