XML 55 R17.htm IDEA: XBRL DOCUMENT v3.2.0.727
Intangible Assets and Liabilities
 6 Months Ended
Jun. 30, 2015
Intangible Assets And Liabilities [Abstract]  
Intangible Assets and Liabilities
Intangible Assets and Liabilities
 
In connection with our acquisitions of properties, we have recorded net lease intangibles that are being amortized over periods ranging from one year to 53 years. In addition, we have several ground lease intangibles that are being amortized over periods of up to 94 years. In-place lease intangibles and tenant relationship intangibles are included in In-place lease and tenant relationship intangible assets, net in the consolidated financial statements. Above-market rent, below-market ground lease (as lessee) intangibles, and goodwill are included in Other intangible assets, net in the consolidated financial statements. Below-market rent and above-market ground lease (as lessor) intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements.
 
In connection with our investment activity during the six months ended June 30, 2015, we recorded net lease intangibles comprised as follows (life in years, dollars in thousands):
 
Weighted-Average Life
 
Amount
Amortizable Intangible Assets
 
 
 
In-place lease
15.1
 
$
40,561

Above-market rent
10.0
 
587

 
 
 
$
41,148

Amortizable Intangible Liabilities
 
 
 
Below-market rent
20.1
 
$
(658
)


Intangible assets and liabilities are summarized as follows (in thousands):
 
June 30, 2015
 
December 31, 2014
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
Amortizable Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
In-place lease and tenant relationship
$
579,528

 
$
(136,611
)
 
$
442,917

 
$
551,569

 
$
(119,125
)
 
$
432,444

Above-market rent
89,676

 
(18,353
)
 
71,323

 
92,548

 
(16,539
)
 
76,009

Below-market ground leases
7,124

 
(259
)
 
6,865

 
7,124

 
(199
)
 
6,925

 
676,328

 
(155,223
)
 
521,105

 
651,241

 
(135,863
)
 
515,378

Unamortizable Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
Goodwill
304

 
—

 
304

 
304

 
—

 
304

Total intangible assets
$
676,632

 
$
(155,223
)
 
$
521,409

 
$
651,545

 
$
(135,863
)
 
$
515,682

 
 
 
 
 
 
 
 
 
 
 
 
Amortizable Intangible Liabilities
 
 
 
 
 
 
 
 
 
 
 
Below-market rent
$
(116,215
)
 
$
16,142

 
$
(100,073
)
 
$
(116,887
)
 
$
13,293

 
$
(103,594
)
Above-market ground lease
(1,144
)
 
24

 
(1,120
)
 
(1,145
)
 
17

 
(1,128
)
Total intangible liabilities
$
(117,359
)
 
$
16,166

 
$
(101,193
)
 
$
(118,032
)
 
$
13,310

 
$
(104,722
)


Net amortization of intangibles, including the effect of foreign currency translation, was $9.6 million for both the three months ended June 30, 2015 and 2014, and $19.0 million and $19.1 million for the six months ended June 30, 2015 and 2014, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Rental income; amortization of below-market ground lease and above-market ground lease intangibles is included in Property expenses; and amortization of in-place lease and tenant relationship intangibles is included in Depreciation and amortization.
 
Based on the intangible assets and liabilities recorded at June 30, 2015, scheduled annual net amortization of intangibles for the remainder of 2015, each of the next four calendar years following December 31, 2015, and thereafter is as follows (in thousands):
Years Ending December 31,
 
Net Increase in Rental Income
 
Increase to Amortization/Property Expenses
 
Net
2015 (remaining)
 
$
(639
)
 
$
19,252

 
$
18,613

2016
 
(438
)
 
34,133

 
33,695

2017
 
(198
)
 
31,519

 
31,321

2018
 
(174
)
 
31,414

 
31,240

2019
 
(165
)
 
31,368

 
31,203

Thereafter
 
(27,136
)
 
300,976

 
273,840

 
 
$
(28,750
)
 
$
448,662

 
$
419,912