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Acquired Intangible Assets and Liabilities
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Acquired Intangible Assets and Liabilities

NOTE 4 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES

The following table summarizes the Company’s identified intangible assets and liabilities as of December 31, 2025 and 2024:

 

 

December 31, 2025

 

 

December 31, 2024

 

Intangible assets:

 

 

 

 

 

 

Acquired in-place lease value

 

$

183,305

 

 

$

183,305

 

Acquired above market lease value

 

 

52,640

 

 

 

52,640

 

Accumulated amortization

 

 

(196,590

)

 

 

(186,893

)

Acquired lease intangibles, net

 

$

39,355

 

 

$

49,052

 

Intangible liabilities:

 

 

 

 

 

 

Acquired below market lease value

 

$

79,914

 

 

$

79,914

 

Accumulated amortization

 

 

(49,153

)

 

 

(45,858

)

Acquired below market lease intangibles, net

 

$

30,761

 

 

$

34,056

 

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:

Amortization recorded as amortization expense:

2025

 

2024

 

2023

 

Acquired in-place lease value

$

6,759

 

$

9,339

 

$

11,538

 

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

 

 

 

 

 

 

Acquired above market leases

$

(2,938

)

$

(3,436

)

$

(3,596

)

Acquired below market leases

 

3,295

 

 

3,364

 

 

5,919

 

Net rental income increase (reduction)

$

357

 

$

(72

)

$

2,323

 

 

Estimated amortization of the respective intangible lease assets and liabilities as of December 31, 2025 for each of the five succeeding years and thereafter is as follows:

 

 

Acquired
In-Place
Leases

 

 

Above
Market
Leases

 

 

Below
Market
Leases

 

2026

 

$

4,937

 

 

$

2,452

 

 

$

2,848

 

2027

 

 

3,562

 

 

 

1,836

 

 

 

2,692

 

2028

 

 

2,864

 

 

 

1,590

 

 

 

2,560

 

2029

 

 

2,580

 

 

 

1,508

 

 

 

2,485

 

2030

 

 

2,007

 

 

 

1,435

 

 

 

2,269

 

Thereafter

 

 

9,029

 

 

 

5,555

 

 

 

17,907

 

Total

 

$

24,979

 

 

$

14,376

 

 

$

30,761