Acquired Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2023

Acquired Intangible Assets and Liabilities

Acquired Intangible Assets and Liabilities

8. Acquired Intangible Assets and Liabilities

The following table summarizes our acquired intangible assets and liabilities:

	Balance as of
	September 30, 2023						December 31, 2022
(Amounts in thousands)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationship value	$	2,861,384	$	(898,951)	$	1,962,433	$	3,327,765	$	(888,105)	$	2,439,660
Acquired in-place lease value		1,089,444		(847,985)		241,459		1,369,526		(1,041,631)		327,895
Other		99,927		(31,037)		68,890		94,829		(26,788)		68,041
Acquired above-market leases		151,924		(148,697)		3,227		264,071	$	(253,693)		10,378
Acquired below-market leases		(272,832)		224,148		(48,684)		(344,256)		255,821		(88,435)

Amortization of customer relationship value, acquired in-place lease value and other intangibles (a component of depreciation and amortization expense) was approximately $59.8 million and $65.7 million for the three months ended September 30, 2023 and 2022, respectively, and approximately $194.4 million and $184.6 million for the nine months ended September 30, 2023 and 2022, respectively.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase in rental and other services revenue of $1.6 million and $1.0 million for the three months ended September 30, 2023 and 2022, respectively, and approximately $5.1 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively.

Estimated annual amortization for each of the five succeeding years and thereafter, commencing October 1, 2023 is as follows:

(Amounts in thousands)		Customer relationship value		Acquired in-place lease value		Other (1)		Acquired above-market leases		Acquired below-market leases
2023	$	43,576	$	12,995	$	1,122	$	366	$	(1,715)
2024		173,725		50,760		4,487		1,327		(6,656)
2025		173,183		49,246		4,447		1,070		(6,503)
2026		172,550		47,447		4,249		357		(5,773)
2027		172,158		38,180		4,235		48		(5,180)
Thereafter		1,227,241		42,831		3,832		59		(22,857)
Total	$	1,962,433	$	241,459	$	22,372	$	3,227	$	(48,684)

(1) Excludes power grid rights in the amount of approximately $46.5 million that are currently not being amortized. Amortization of these assets will begin once the data centers associated with the power grid rights are placed into service.