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Intangibles (Tables)
 6 Months Ended
Jun. 30, 2015
Intangibles  
Summary of the carrying amount of intangible assets and liabilities

The following is a summary of the carrying amount of intangible assets and liabilities as of June 30, 2015 and December 31, 2014 (in thousands):

 

 

 

June 30, 2015

 

December 31, 2014

 

 

 

Cost

 

Accumulated
Amortization

 

Net

 

Cost

 

Accumulated
Amortization

 

Net

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

In-place leases

 

$
110,825

 

$
(18,084

)

$
92,741

 

$
64,777

 

$
(12,213

)

$
52,564

 

Above market leases

 
19,078

 
(1,507

)
17,571

 
7,449

 
(578

)
6,871

 

Leasehold interest

 
712

 
(35

)
677

 
759

 
(5

)
754

 

Below market ground lease

 
1,640

 
(5

)
1,635

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
132,255

 

$
(19,631

)

$
112,624

 

$
72,985

 

$
(12,796

)

$
60,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability

 

 

 

 

 

 

 

 

 

 

 

 

 

Below market lease

 

$
2,902

 

$
(420

)

$
2,482

 

$
2,330

 

$
(156

)

$
2,174

 

Above market ground lease

 
701

 
(12

)
689

 
701

 
(4

)
697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
3,603

 

$
(432

)

$
3,171

 

$
3,031

 

$
(160

)

$
2,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of the carrying amount of acquired lease intangibles

The following is a summary of the acquired lease intangible amortization for the three and six month periods ended June 30, 2015 and 2014, respectively (in thousands):

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Amortization expense related to in-place leases

 

$
3,397 

 

$
1,013 

 

$
5,871 

 

$
1,724 

 

Decrease of rental income related to above-market leases

 
577 

 
73 

 
929 

 
119 

 

Decrease of rental income related to leasehold interest

 
14 

 

—

 
29 

 

—

 

Increase of rental income related to below-market leases

 
138 

 
1 

 
264 

 
1 

 

Decrease of operating expense related to above market ground leases

 
4 

 

—

 
8 

 

—

 

Increase in operating expense related to below market ground lease

 
4 

 

—

 
5 

 

—

 

 

Schedule of future amortization of the acquired lease intangibles

Future aggregate net amortization of the acquired lease intangibles as of June 30, 2015, is as follows (in thousands):

 

 

 

Net Decrease in 
Revenue

 

Net Increase in 
Expenses

 

2015

 

$
(1,143

)

$
7,466

 

2016

 
(2,254

)
14,920

 

2017

 
(1,896

)
13,941

 

2018

 
(1,650

)
12,494

 

2019

 
(1,516

)
9,405

 

Thereafter

 
(7,307

)
35,461

 

 

 

 

 

 

 

Total

 

$
(15,766

)

$
93,687