NOTE 5 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES

The following table summarizes the Company’s identified intangible assets and liabilities as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Intangible assets:
Acquired in place lease value	$	164,624		$	159,679
Acquired above market lease value	$	39,318		$	37,179
Accumulated amortization	$	(53,166	)	$	(46,750	)
Acquired lease intangibles, net	$	150,776		$	150,108
Intangible liabilities:
Acquired below market lease value	$	71,103		$	66,962
Above market ground lease	$	5,169		$	5,169
Accumulated amortization	$	(10,168	)	$	(8,657	)
Acquired intangible liabilities, net	$	66,104		$	63,474

As of March 31, 2017, the weighted average amortization periods for acquired in place lease, above market lease intangibles, below market lease intangibles and above market ground leases are 10, 13, 19 and 55 years, respectively.

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 acquired above market ground lease is amortized on a straight-line basis as an adjustment to property operating expense over the term of the lease and includes renewal periods. 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.

As of March 31, 2017, no amount has been allocated to customer relationship value.

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

	Three Months Ended March 31,
Amortization recorded as amortization expense:	2017			2016
Acquired in place lease value	$	5,419		$	7,297
Amortization recorded as a reduction to property operating expense:
Above market ground lease	$	23		$	23
Amortization recorded as a (reduction) increase to rental income:
Acquired above market leases	$	(997	)	$	(1,202	)
Acquired below market leases		1,488			1,257
Net rental income increase	$	491		$	55

Estimated amortization of the respective intangible lease assets and liabilities as of March 31, 2017 for each of the five succeeding years and thereafter is as follows:

	Acquired In-Place Leases		Above Market Leases		Below Market Leases			Above Market Ground Lease
2017 (remainder of year)	$	15,516	$	2,988	$	(3,493	)	$	(70	)
2018	$	18,687	$	3,449	$	(4,495	)	$	(94	)
2019	$	16,850	$	3,084	$	(4,350	)	$	(94	)
2020	$	14,015	$	2,745	$	(4,139	)	$	(94	)
2021	$	11,459	$	2,676	$	(3,920	)	$	(94	)
Thereafter	$	43,013	$	16,294	$	(40,679	)	$	(4,582	)
Total	$	119,540	$	31,236	$	(61,076	)	$	(5,028	)