Acquired Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2022

Acquired Intangible Assets and Liabilities

Acquired Intangible Assets and Liabilities

8. Acquired Intangible Assets and Liabilities

The following table summarizes our acquired intangible assets and liabilities:

	Balance as of
	September 30, 2022						December 31, 2021
(Amounts in thousands)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationship value	$	3,168,834	$	(821,923)	$	2,346,911	$	2,838,842	$	(721,983)	$	2,116,859
Acquired in-place lease value		1,355,693		(1,018,282)		337,411		1,278,012		(995,883)		282,129
Other		120,099		(21,373)		98,726		101,869		(14,688)		87,181
Acquired above-market leases		261,807		(249,492)		12,315		268,724	$	(247,135)		21,589
Acquired below-market leases		(341,978)		250,638		(91,340)		(351,052)		247,877		(103,175)

Amortization of customer relationship value, acquired in-place lease value and other intangibles (a component of depreciation and amortization expense) was approximately $65.7 million and $65.2 million for the three months ended September 30, 2022 and 2021 respectively, and approximately $184.6 million and $199.3 million for the nine months ended September 30, 2022 and 2021, respectively.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase in rental and other services revenue of $1.0 million and a decrease of $(0.7) million for the three months ended September 30, 2022 and 2021, respectively and $1.5 million and $(3.3) million for the nine months ended September 30, 2022 and 2021, respectively.

Estimated annual amortization for each of the five succeeding years and thereafter, commencing October 1, 2022 is as follows:

(Amounts in thousands)		Customer relationship value		Acquired in-place lease value		Other (1)		Acquired above-market leases		Acquired below-market leases
Remainder of 2022	$	58,376	$	15,403	$	2,662	$	1,937	$	(3,253)
2023		232,629		57,553		4,946		4,758		(12,395)
2024		232,049		52,087		3,690		2,584		(11,102)
2025		231,547		49,109		3,653		1,452		(10,117)
2026		231,112		45,103		3,470		684		(8,615)
Thereafter		1,361,198		118,156		41,101		900		(45,858)
Total	$	2,346,911	$	337,411	$	59,522	$	12,315	$	(91,340)

(1) Excludes power grid rights in the amount of approximately $39.2 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.