Intangible Assets and Liabilities

3 Months Ended

Mar. 31, 2013

Intangible Assets And Liabilities [Abstract]

Intangible Assets And Liabilities Disclosure

Note7.Intangible Assets and Liabilities

In connection with our acquisition of properties through March 31, 2013, we have net lease intangibles that are being amortized over periods ranging from one year to 40 years. In-place lease intangibles are included in In-place lease intangible assets, netin the consolidated financial statements. Tenant relationship, above-market rent, and below-market ground lease intangibles are included in Other intangible assets, net in the consolidated financial statements. Below-market rent and above-market ground lease intangibles are included in Prepaid and deferred rental income in the consolidated financial statements.

In connection with our investment activity during the three months ended March 31, 2013, we have recorded intangibles as follows (in thousands):

	Weighted-Average Life		Amount (a)
Amortizable Intangible Assets
Lease intangibles:
In-place lease		15.0	$	4,995
Total intangible assets			$	4,995
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent		14.4	$	(2,237)
Above-market ground lease		3.3		(157)
Total intangible liabilities			$	(2,394)

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• Amounts are based upon the preliminary estimated fair values, which are based on the best estimates of management at the date of acquisition (Note 4).

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

	March 31, 2013						December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizable Intangible Assets
Lease intangibles:
In-place lease	$	469,059	$	(52,863)	$	416,196	$	467,846	$	(44,762)	$	423,084
Other (a)		87,729		(12,143)		75,586		89,132		(10,893)		78,239
Total intangible assets	$	556,788	$	(65,006)	$	491,782	$	556,978	$	(55,655)	$	501,323
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent	$	(85,859)	$	4,704	$	(81,155)	$	(84,130)	$	3,675	$	(80,455)
Above-market ground lease		(157)		-		(157)		-		-		-
Total intangible liabilities	$	(86,016)	$	4,704	$	(81,312)	$	(84,130)	$	3,675	$	(80,455)

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(a)Includes tenant relationships, above-market rent and below-market ground lease.

Net amortization of intangibles, including the effect of foreign currency translation, was$8.9 million and $6.1 million for the three months ended March 31, 2013 and 2012, respectively. Amortization of below-market rent, above-market rent, below-market ground lease, and above-market ground lease 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 March 31, 2013, scheduled annual net amortization of intangibles for the remainder of 2013, each of the next four yearsfollowing December 31, 2013,and thereafteris as follows (in thousands):

Years Ending December 31,	Total
2013 (remainder)	$	24,801
2014		30,618
2015		28,582
2016		26,551
2017		25,812
Thereafter		274,106
Total	$	410,470