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Acquired Intangible Assets and Liabilities
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Acquired Intangible Assets and Liabilities

NOTE 5 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES

The following table summarizes the Company’s identified intangible assets and liabilities as of June 30, 2024 and December 31, 2023:

 

 

June 30, 2024

 

 

December 31, 2023

 

Intangible assets:

 

 

 

 

 

 

Acquired in-place lease value

 

$

183,305

 

 

$

183,305

 

Acquired above market lease value

 

 

52,640

 

 

 

52,640

 

Accumulated amortization

 

 

(180,500

)

 

 

(174,118

)

Acquired lease intangibles, net

 

$

55,445

 

 

$

61,827

 

Intangible liabilities:

 

 

 

 

 

 

Acquired below market lease value

 

$

79,914

 

 

$

79,914

 

Accumulated amortization

 

 

(44,155

)

 

 

(42,494

)

Acquired below market lease intangibles, net

 

$

35,759

 

 

$

37,420

 

The portion of the purchase price allocated to acquired above market lease value and acquired below market lease value is amortized on a straight-line basis over the term of the related lease as an adjustment to rental income. For below market lease values, the amortization period includes any renewal periods with fixed rate renewals. The portion of the purchase price allocated to acquired in-place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term.

Amortization pertaining to acquired in-place lease value, above market lease value and below market lease value is summarized below:

 

Three Months Ended
June 30,

 

 

Six Months Ended
 June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Amortization recorded as amortization expense:

 

 

 

 

 

 

 

 

 

 

 

Acquired in-place lease value

$

2,308

 

 

$

3,260

 

 

$

4,712

 

 

$

6,212

 

Amortization recorded as a (reduction) increase to rental income:

 

 

 

 

 

 

 

 

 

 

 

Acquired above market leases

$

(830

)

 

$

(894

)

 

$

(1,670

)

 

$

(1,796

)

Acquired below market leases

 

826

 

 

 

3,239

 

 

 

1,661

 

 

 

4,217

 

Net rental income (reduction) increase

$

(4

)

 

$

2,345

 

 

$

(9

)

 

$

2,421

 

 

Estimated amortization of the respective intangible lease assets and liabilities as of June 30, 2024 for each of the five succeeding years and thereafter is as follows:

 

 

Acquired
In-Place
Leases

 

 

Above Market Leases

 

 

Below
Market
Leases

 

2024 (remainder of year)

 

$

4,390

 

 

$

1,641

 

 

$

1,639

 

2025

 

 

6,741

 

 

 

2,929

 

 

 

3,065

 

2026

 

 

5,017

 

 

 

2,503

 

 

 

2,926

 

2027

 

 

3,609

 

 

 

1,858

 

 

 

2,724

 

2028

 

 

2,909

 

 

 

1,612

 

 

 

2,587

 

Thereafter

 

 

13,699

 

 

 

8,537

 

 

 

22,818

 

Total

 

$

36,365

 

 

$

19,080

 

 

$

35,759