Acquired Lease Intangibles

3 Months Ended

Mar. 31, 2013

Acquired Lease Intangibles [Abstract]

Acquired Lease Intangibles

5. ACQUIRED LEASE INTANGIBLES

We identify and record the value of acquired lease intangibles at the property acquisition date. Such intangibles include the value of acquired in-place leases and above and below-market leases. Acquired lease intangibles are amortized over the leases’ remaining terms, which generally range from one month to 25 years. Below market lease amortization includes fixed-rate renewal periods where we believe the tenant is reasonably compelled to renew the lease.

Balance Sheet Presentation

Total in-place and above and below-market lease amounts and their respective accumulated amortization as of March 31, 2013and December 31, 2012 are as follows (in thousands):

	March 31, 2013		December 31, 2012
Acquired lease intangible assets:
In-place leases	$	22,588	$	27,821
In-place leases – accumulated amortization		(11,330)		(14,096)
Below market ground lease		358		358
Below market ground lease - accumulated amortization		(40)		-
Above-market leases		3,599		3,774
Above-market leases – accumulated amortization		(1,844)		(1,881)
Acquired leases intangibles, net	$	13,331	$	15,976
Acquired lease intangible liabilities:
Below-market leases	$	4,280	$	6,286
Below-market leases – accumulated amortization		(1,717)		(2,779)
Acquired below-market lease intangibles, net	$	2,563	$	3,507

Income Statement Presentation

The following table details our amortization related to in-place leases and above and below-market leases as well as the presentation of such amounts in our consolidated statements of operations for the three months ended March 31, 2013 and 2012 (in thousands):

Three months ended March 31,	Presentation	2013		2012
In-place leases	amortization expense	$	1,210	$	581
Below-market ground lease	property expense	$	40	$	-
Above-market leases	reduction of rental income	$	138	$	24
Below-market leases	increase in rental income	$	247	$	78