Deferred Costs, Acquired Lease Intangibles and Goodwill

3 Months Ended

Mar. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following as of March 31, 2019 and December 31, 2018 (amounts in thousands):

	March 31, 2019			December 31, 2018
Leasing costs	$	179,468		$	178,120
Acquired in-place lease value and deferred leasing costs	214,146			214,550
Acquired above-market leases	51,489			52,136
	445,103			444,806
Less: accumulated amortization	(217,462		)	(209,839		)
Total deferred costs, net, excluding net deferred financing costs	$	227,641		$	234,967

At March 31, 2019 and December 31, 2018, $5.7 million and $6.3 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.    

Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $6.2 million and $6.2 million for the three months ended March 31, 2019 and 2018, respectively. Amortization expense related to acquired lease intangibles was $3.2 million and $3.4 million for the three months ended March 31, 2019 and 2018, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2019 and December 31, 2018 (amounts in thousands):

	March 31, 2019			December 31, 2018
Acquired below-market ground leases	$	396,916		$	396,916
Less: accumulated amortization	(38,476		)	(36,518		)
Acquired below-market ground leases, net	$	358,440		$	360,398

	March 31, 2019			December 31, 2018
Acquired below-market leases	$	(118,113	)	$	(118,462	)
Less: accumulated amortization	69,382			66,012
Acquired below-market leases, net	$	(48,731	)	$	(52,450	)

Rental revenue related to the amortization of below-market leases, net of above-market leases, was $2.4 million and $1.2 million for the three months ended March 31, 2019 and 2018, respectively.

As of March 31, 2019, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate segment.