Intangibles

9 Months Ended

Sep. 30, 2020

Finite-Lived Intangible Assets, Net [Abstract]

The following is a summary of the carrying amount of intangible assets and liabilities as of September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020						December 31, 2019
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Assets
In-place leases	$	355,270	$	(165,411)	$	189,859	$	346,438	$	(140,937)	$	205,501
Above-market leases	43,386		(19,741)		23,645		43,300		(16,856)		26,444
Leasehold interest	712		(346)		366		712		(302)		410

Right-of-use lease assets	141,435		(3,744)		137,691		129,976		(2,043)		127,933
Total	$	540,803	$	(189,242)	$	351,561	$	520,426	$	(160,138)	$	360,288
Liabilities
Below-market leases	$	14,589	$	(8,926)	$	5,663	$	14,054	$	(7,958)	$	6,096

Lease liabilities	74,693		(675)		74,018		63,665		(375)		63,290
Total	$	89,282	$	(9,601)	$	79,681	$	77,719	$	(8,333)	$	69,386

The following is a summary of acquired lease intangible amortization for the three and nine month periods ended September 30, 2020 and 2019, (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Amortization expense related to in-place leases	$	9,088	$	8,890	$	26,190	$	27,138
Decrease in rental income related to above-market leases	954		1,105		2,918		3,321
Decrease in rental income related to leasehold interest	15		15		45		45
Increase in rental income related to below-market leases	397		429		1,102		1,509
Decrease in operating expense related to above-market ground leases (1)	35		35		104		104
Increase in operating expense related to below-market ground leases (1)	309		306		925		913

(1)Above- and below-market ground leases are included in the right-of-use asset as of January 1, 2019 due to the implementation of ASU 2016-02, Leases.

For the three and nine months ended September 30, 2020, the Company wrote off in-place lease assets of $1.7 million with accumulated amortization of $0.9 million, for a net loss of $0.8 million.

Future aggregate net amortization of acquired lease intangibles as of September 30, 2020, is as follows (in thousands):


	Net Decrease in Revenue		Net Increase in Expenses
2020	$	639	$	9,027
2021	2,488		33,315
2022	2,044		29,446
2023	1,737		26,588
2024	1,675		23,583
Thereafter	9,765		131,573
Total	$	18,348	$	253,532

As of September 30, 2020, the weighted average remaining amortization period for asset lease intangibles and liability lease intangibles is 27 and 41 years, respectively.