Acquired Intangible Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Acquired Intangible Assets and Liabilities

Acquired Intangible Assets and Liabilities

7. Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (real estate intangibles, comprised of acquired in-place lease value and customer relationship value along with acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of March 31, 2020 and December 31, 2019.

	Balance as of
(Amounts in thousands)	March 31, 2020		December 31, 2019
Real Estate Intangibles:
Customer relationship value:
Gross amount (1)	$	3,194,157	$	1,845,949
Accumulated amortization		(427,337)		(400,570)
Net	$	2,766,820	$	1,445,379
Acquired in-place lease value:
Gross amount	$	1,368,685	$	1,357,190
Accumulated amortization		(920,682)		(899,071)
Net	$	448,003	$	458,119
Acquired above-market leases:
Gross amount	$	276,679	$	279,048
Accumulated amortization		(210,646)		(204,233)
Net	$	66,033	$	74,815
Acquired below-market leases:
Gross amount	$	396,532	$	396,509
Accumulated amortization		(251,324)		(247,735)
Net	$	145,208	$	148,774

(1) Balance as of March 31, 2020 includes provisional amounts from Interxion Combination (see Note 3).

Amortization of customer relationship value (a component of depreciation and amortization expense) was approximately $29.1 million and $38.0 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, the weighted average remaining contractual life for customer relationship value was 16.4 years. Estimated annual amortization of customer relationship value for each of the five succeeding years and thereafter, commencing April 1, 2020 is as follows:

(Amounts in thousands)
Remainder of 2020	$	155,015
2021		206,687
2022		206,687
2023		206,687
2024		206,687
Thereafter		1,785,057
Total	$	2,766,820

Amortization of acquired in-place lease value (a component of depreciation and amortization expense) was approximately $27.2 million and $44.9 million for the three months ended March 31, 2020 and 2019, respectively. The expected average amortization period for acquired in-place lease value is 5.9 years as of March 31, 2020. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 5.7 years as of March 31, 2020. Estimated annual amortization of acquired in-place lease value for each of the five succeeding years and thereafter, commencing April 1, 2020 is as follows:

(Amounts in thousands)
Remainder of 2020	$	72,301
2021		79,168
2022		59,522
2023		48,425
2024		41,326
Thereafter		147,261
Total	$	448,003

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in a decrease in rental revenues of $(3.3) million and $(6.2) million for the three months ended March 31, 2020 and 2019, respectively. The expected average remaining lives for acquired below-market leases and acquired above-market leases is 7.7 years and 2.4 years, respectively, as of March 31, 2020. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years and thereafter, commencing April 1, 2020 is as follows:

(Amounts in thousands)
Remainder of 2020	$	(7,269)
2021		(3,406)
2022		4,806
2023		9,572
2024		10,224
Thereafter		65,248
Total	$	79,175