Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2012

Finite-Lived Intangible Assets

Intangible Assets Disclosure

Note 7.Intangible Assets and Liabilities

In connection with our acquisition of properties through September 30, 2012, we have net lease intangibles that are being amortized over periods ranging from one year to 37 years. In-place lease, tenant relationship, and above-market rent intangibles are included in Intangible assets, net in the consolidated financial statements. Below-market rent intangibles are included in Prepaid and deferred rental income in the consolidated financial statements.

In connection with our investment activity during the nine months ended September 30, 2012, we have recorded intangibles as follows (in thousands):

	Weighted-Average Life		Amount
Amortizable Intangible Assets
Lease intangibles:
In-place lease		16.5	$	88,788
Above-market rent		16.7		13,366
Total intangible assets			$	102,154
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent		22.6	$	(21,275)
Total intangible liabilities			$	(21,275)

Intangible assets and liabilities are summarized as follows (in thousands):

	September 30, 2012		December 31, 2011
Amortizable Intangible Assets
Lease intangibles:
In-place lease	$	373,489	$	286,913
Tenant relationship		13,079		13,102
Above-market rent		72,158		58,788
Less: accumulated amortization		(46,921)		(24,666)
Total intangible assets	$	411,805	$	334,137
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent	$	(47,969)	$	(26,809)
Less: accumulated amortization		2,880		1,187
Total intangible liabilities	$	(45,089)	$	(25,622)

Net amortization of intangibles, including the effect of foreign currency translation, was $7.3 million and $5.5 million for the three months ended September 30, 2012 and 2011, respectively, and $20.5 million and $12.4 million for the nine months ended September 30, 2012 and 2011, respectively. Amortization of below-market and above-market rent intangibles is recorded as an adjustment to Lease revenues, while amortization of in-place lease and tenant relationship intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at September 30, 2012, scheduled annual net amortization of intangibles for each of the next five years and thereafteris as follows (in thousands):

Years Ending December 31,	Total
2012 (remainder)	$	7,570
2013		28,103
2014		25,115
2015		23,326
2016		22,715
Thereafter		259,887
Total	$	366,716