Deferred Costs, Acquired Lease Intangibles and Goodwill

9 Months Ended

Sep. 30, 2022

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 September 30, 2022 and December 31, 2021 (amounts in thousands):  

	September 30, 2022		December 31, 2021
Leasing costs	$	218,552	$	211,189
Acquired in-place lease value and deferred leasing costs	158,286		166,491
Acquired above-market leases	28,123		33,289
	404,961		410,969
Less: accumulated amortization	(221,751)		(215,764)
Total deferred costs, net, excluding net deferred financing costs	$	183,210	$	195,205

    At September 30, 2022 and December 31, 2021, $5.5 million and $7.2 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 sheets.

    Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $5.6 million and $10.4 million for the three months ended September 30, 2022 and 2021, respectively, and $19.8 million and $22.1 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense related to acquired lease intangibles was $2.2 million and $5.0 million for the three months ended September 30, 2022 and 2021, respectively, and $10.6 million and $8.3 million for the nine months ended September 30, 2022 and 2021, respectively.

    Amortizing acquired intangible assets and liabilities consisted of the following as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022		December 31, 2021
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(65,886)		(60,012)
Acquired below-market ground leases, net	$	331,030	$	336,904

	September 30, 2022		December 31, 2021
Acquired below-market leases	$	(64,529)	$	(65,403)
Less: accumulated amortization	45,632		40,462
Acquired below-market leases, net	$	(18,897)	$	(24,941)

    Rental revenue related to the amortization of below-market leases, net of above-market leases, was $0.7 million and $4.2 million for the three months ended September 30, 2022 and 2021, respectively, and $4.1 million and $5.6 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, 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 reportable segment.