Acquired Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2024

Acquired Intangible Assets and Liabilities

Acquired Intangible Assets and Liabilities

7. Acquired Intangible Assets and Liabilities

The following table summarizes our acquired intangible assets and liabilities:

	Balance as of
	September 30, 2024						December 31, 2023
(Amounts in thousands)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationship value	$	2,926,388	$	(1,068,137)	$	1,858,251	$	2,926,808	$	(952,943)	$	1,973,865
Acquired in-place lease value		1,080,649		(871,818)		208,831		1,089,743		(859,167)		230,576
Other		126,624		(37,654)		88,970		108,744		(33,483)		75,261
Acquired above-market leases		136,757		(131,780)		4,977		153,205		(150,344)		2,861
Acquired below-market leases		(266,513)		225,398		(41,115)		(273,951)		226,840		(47,111)

Amortization of customer relationship value, acquired in-place lease value and other intangibles (a component of depreciation and amortization expense) was approximately $61.5 million and $59.8 million for the three months ended September 30, 2024 and 2023, respectively, and approximately $178.0 million and $194.4 million for the nine months ended September 30, 2024 and 2023, respectively.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase in rental and other services revenue of $1.2 million and $1.6 million for the three months ended September 30, 2024 and 2023, respectively, and approximately $4.0 million and $5.1 million for the nine months ended September 30, 2024 and 2023, respectively.

Estimated annual amortization for each of the five succeeding years and thereafter, commencing October 1, 2024 is as follows:

(Amounts in thousands)		Customer relationship value		Acquired in-place lease value		Other (1)		Acquired above-market leases		Acquired below-market leases
2024	$	45,679	$	15,486	$	743	$	310	$	(1,568)
2025		178,648		56,363		2,970		1,242		(6,242)
2026		178,011		55,202		2,970		1,124		(5,441)
2027		177,619		45,304		2,970		988		(4,796)
2028		155,174		24,631		2,989		986		(4,591)
Thereafter		1,123,120		11,845		7,330		327		(18,477)
Total	$	1,858,251	$	208,831	$	19,972	$	4,977	$	(41,115)

(1) Excludes power grid rights in the amount of approximately $69.0 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.